Companies from the Medium-sized companies increasingly have to deal with the rules of international accounting. The advantages of IFRS lie mainly in greater transparency, especially when comparing company financial statements. Thereby the international Accounting standards should be harmonised so that financial statements are internationally comparable.0
IFRS rules mandatory?
Admittedly, there is only an obligation to apply international accounting for companies operating on the capital market. Nevertheless, the introduction of IFRS is for ever global Sometimes it is worthwhile for small and medium-sized enterprises. There is a considerable difference between the German HGB and IFRS. IFRS primarily aims to provide investors with the information they need to make decisions. The HGB is more concerned with the protection of creditors under commercial law.
Conversion HGB to IFRS
There is no doubt that the conversion from HGB to IFRS in a medium-sized company involves considerable effort not only in the accounting connected. This is often impossible without the help of external consultants. In this context, it is important to carefully weigh up whether supposed advantages, e.g. with regard to improved financing possibilities, justify the increased effort involved in the introduction of IFRS.
Brochure on the topic of IFRS
Of the BDI has published a brochure on IFRS together with the banking association and Ernst&Young.
Under the title "International Financial Reporting Standards also for SMEs? becomes Pros & Cons the introduction of the rules of international accounting.