A comparison and contrast of German and international financial reporting issues. Fair Value Accouting - current issues and possible solutions
Seminar paper from the year 2004 in the subject Business economics - Accounting and Taxes, grade: 1.7, University of Bayreuth (School of Law, Economics and Business Administration ), course: 'business taxation and auditing' , 35 entries in the bibliography, language: English, abstract: Huge changes arose in the world of economy during the last decade. Due to globalisation and competition for scarce capital1 a heightened discussion regarding different national accounting policies emerged. There has been an intensive controversy between continental-European and Anglo-American based accountancy. All companies listed on a stock exchange in the EU are obliged to present their group accounts in accordance with IAS/IFRS2 from 2005 on. One crucial aspect of IRFS focuses on the increasing tendency to recognise a fair value which implies a departure from historical cost-based financial statement to a rather market value-based one. Subsequently, this paper introduces and compares the current valuation bases of the German commercial/tax law and IRFS. Because of the increasing importance of IFRS the major point reflects this consideration. Finally, contrasts will be emphasised and opportunities for a complete takeover of an advanced fair value accounting to German accountancy will be examined. For this reason a reference to the general objectives and principles both of the accountancies is inevitable and will be introduced in either case.
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acquisition or production Baetge balance sheet date Ballwieser Basingstoke BFuP commercial code Concepts of valuation current assets depreciations Dieter/KPMG Discounted Cash Flow equity capital 200 equity securities EStG fair value accounting fair value approach fair value measurement figure shall give financial assets financial capital maintenance financial instruments financial statements fixed assets following figure Functions of annual GAAP German accounting German law Germany Individual Accounts historical cost concept IASB Framework IFRS imparity principle income determination income statement International Accounting Standards Journal of Accountancy liabilities limited companies lower fair value lower of cost lower value principle Mark to Market market prices market value networth numbers Objectives and basic Ordelheide part-of-the-whole value presentation in accordance Primary valuation bases prudence principle realisation principle realised expense realised revenue recognition replacement costs revaluation surplus Schneider Searfoss Secondary valuation bases Sigloch stock market Transnational Accounting unrealised profits Valet dem Maßgeblichkeitsprinzip valuation principles value accounting according Wöhe