20. March 2023

ASCG launches Evaluation on the Application of IFRS in Germany

The ASCG is launching the 1st phase of an evaluation on the application of IFRS in Germany and invites all interested parties to participate in this study.

As outlined in the accompanying guidance, the objective of the study is to objectively collect and record the various stakeholder perspectives on the application of IFRS in Germany. In addition to the motivation for the application and the associated challenges from the perspective of the preparers, the user perspective, as well as the conceptual interactions with the diverse functions of financial reporting are to be included.

In a first step (Phase 1), interested stakeholders from all areas (preparers of financial statements, auditors, research & education, users) will be involved via interviews. The objective of these semi-structured interviews is to better understand in particular the starting position, motivation and needs of the different stakeholders. The interviews are designed as mixed group interviews (with a maximum of 10 participants each). The subject of these approximately two-hour video conferences will be, in particular, questions on the cost-benefit analysis of IFRS (consolidated and separate financial statements), on conceptual challenges for IFRS annual financial statements and also on the pros and cons of an option for the exempting application of IFRS in annual financial statements. Explicitly, non-applicants of IFRS are also invited and called upon to participate in order to obtain a complete picture of opinions.

The interviews will be conducted as (non-public) video conferences in the period up to May 2023.

“This evaluation is the ASCG’s first systematic stocktaking of the internationalisation of financial reporting in Germany. In addition to lessons learned from the past, we also want to look ahead. Among other things, this is prompted by the standard-setting activities in IFRS for SMEs, the planned disclosure simplifications under IFRS for subsidiaries without public accountability and, last but not least, the accounting basis in the context of the implementation of a global minimum taxation (BEPS Pillar II). Proponents and critics of these developments should have their say in equal measure. We would be very pleased about a broad participation in the interviews and hope for lively debates,” commented Prof. Dr. Sven Morich, Vice President of the ASCG, on the launch of the study.

Following the group interviews, a structured questionnaire will be developed – building on the findings of Phase 1 – which will be put out for general public consultation as an online survey in the second half of 2023 (so-called Phase 2). Further information on the background and the process of the overall study can be found on the project page.

If you have any questions, please do not hesitate to contact the ASCG project team (Ilka Canitz canitz@drsc.de and Peter Zimniok zimniok@drsc.de).