What is the difference between IFRS and HGB?

In general, the main difference between the IFRS and the accounting regulations of the HGB is that the HGB always sees the protection of creditors as their highest priority. On the other hand, IFRS and US GAAP, which is a prerequisite for entry to the New York Stock Exchange – focus on investor protection.

What is HGB accounting?

Key Takeaways. Handelsgesetzbuch (HGB) is Germany’s commercial code and accounting standards for how companies must prepare and report financial statements. The HGB also mandates various corporate ordinances and regulations dealing with the treatment of workers.

Can German companies use IFRS?

Yes. In accordance with the EU Accounting Regulation, IFRS Standards as adopted by the EU are required for the consolidated financial statements of all European companies whose debt or equity securities trade in a regulated market in Germany.

Is HGB German GAAP?

German Commercial Code (Handelsgesetzbuch, HGB) requires all corporations to prepare annual financial statements which present a true and fair view of the net assets, financial position and results of operation in accordance with German generally accepted accounting principles (German GAAP).

Is IFRS German GAAP?

The global convergence towards International Financial Reporting Standards (IFRS) continuously influences the development of German statutory accounting and reporting requirements (German GAAP).


GAAP, also referred to as US GAAP, is an acronym for Generally Accepted Accounting Principles. This set of guidelines is set by the Financial Accounting Standards Board (FASB) and adhered to by most US companies. IFRS stands for International Financial Reporting Standards.

Is HGB hemoglobin?

Hemoglobin (often abbreviated as Hb or Hgb) is the oxygen-carrying component of red blood cells. Hemoglobin, which gives red blood cells their color, helps carry oxygen from the lungs to the rest of the body and carbon dioxide back to the lungs to be exhaled.

What countries use IFRS GAAP?

IFRS is used in more than 110 countries around the world, including the EU and many Asian and South American countries. GAAP, on the other hand, is only used in the United States. Companies that operate in the U.S. and overseas may have more complexities in their accounting.

What is the difference between IFRS and US GAAP?

The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based. This disconnect manifests itself in specific details and interpretations. Basically, IFRS guidelines provide much less overall detail than GAAP.

When did China adopt IFRS?

Consistent with this trend, China mandated IFRS adoption for all publicly traded firms beginning in 2007. A primary goal of China’s IFRS adoption is to attract greater foreign investment (MOF, 2006).

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