German accounting standards
The German Accounting Standards (DRS) are developed by the HGB Technical Committee, formerly the German Standardization Council (DSR), of the German Accounting Standards Committee (DRSC).
On the basis of § 342 HGB , the Federal Ministry of Justice (BMJ) recognized the DRSC as a private accounting body in a contract dated September 3, 1998. It has the DRSC u. a. commissioned with the development of recommendations for the application of the principles of group accounting. Under the umbrella of the DRSC, the German Standardization Council performs this task by issuing the German accounting standards.
If the accounting standards published by the Federal Ministry of Justice in the Federal Gazette have been applied, compliance with the principles of proper accounting relating to group accounting is assumed in accordance with Section 342 (2) HGB.
Legal character and binding force
The DRS exclusively address consolidated financial statements that are prepared in accordance with German commercial law. Their degree of obligation and their legal character are controversial. In the literature, for example, the opinion is expressed that the person making the balance sheet adheres to the principles of proper accounting (GoB) if he observes the DRS. However, there would be no consequences for the balancing party if the DRS is not observed. In particular, the norms of the law have priority over the DRS. If the accounting party exercises a statutory right to choose differently than recommended in the DRS, the group auditor should, in the opinion of the Institut der Wirtschaftsprüfer in Deutschland e. V. have no objections to the correctness of the group accounting (PS 450). However, the auditor had to point out such a deviation in the audit report.
Process of developing the standards
The standards are developed in a formal standard setting procedure (due process) in which interested organizations and persons can comment on the draft standards.
Current standards
| DRS no. | theme |
|---|---|
| DRS 2 |
Cash flow statement
Special features for credit institutions (DRS 2-10) and insurance companies (DRS 2-20) |
| Drs 3 | Segment reporting
Special features for credit institutions (DRS 3-10) and insurance companies (DRS 3-20) |
| DRS 4 | Company acquisitions in the consolidated financial statements |
| DRS 5 | Risk reporting
Special features for credit institutions (DRS 5-10) and insurance companies (DRS 5-20) |
| DRS 7 | Group equity and consolidated comprehensive income |
| DRS 8 | Accounting for shares in associated companies in the consolidated financial statements |
| DRS 9 | Accounting for shares in joint ventures in the consolidated financial statements |
| DRS 13 | Principle of consistency and correction of errors |
| DRS 1 5 | Management reporting |
| DRS 16 | Interim reporting BAnz AT 04.12.2012 B2 |
| DRS 17 | Reporting on the remuneration of board members |
| DRS 18 | Deferred taxes |
| DRS 19 | Obligation to prepare group accounts and define the scope of consolidation |
| DRS 20 | Group management report BAnz AT 04.12.2012 B1 |
| DRS 21 | Cash flow statement BAnz AT 04/08/2014 B2 |
| DRS 22 | Group equity BAnz AT 02/23/2016 B1 |
| DRS 23 | Capital consolidation (inclusion of subsidiaries in the consolidated financial statements) BAnz AT 02/23/2016 B2 |
| DRS 24 | Intangible assets in the consolidated financial statements BAnz AT 02/23/2016 B3 |
| DRS 25 | Currency conversion in the consolidated financial statements BAnz AT May 3, 2018 B1 |
| DRS 26 | Associated companies BAnz AT 16.10.2018 B1 |
| DRS 27 | Proportional consolidation BAnz AT 16.10.2018 B2 |
See also
Web links
- List of DRS on the DRSC website
