GAS 16 - Half-yearly Financial Reporting

• The 2012 Standard was adopted by the Accounting Standards Committee of Germany (ASCG) on 2 November 2012. Publication of the authoritative German version by the Federal Ministry of Justice under section 342(2) of the HGB on 4 December 2012.
• The version as amended by German Accounting Amendment Standard No. 7 (GAAS 7) was adopted by the ASCG on 21 April 2016. Publication of the authoritative German version by the Federal Ministry of Justice and Consumer Protection under section 342(2) of the HGB on 21 June 2016.
• Revised paragraphs 8, 14, and 54 adopted by the Accounting Standards Committee of Germany (ASCG) on 22 September 2017. Publication of the authoritative German version by the Federal Ministry of Justice and Consumer Protection under section 342(2) of the HGB on 4 December 2017.
• Revised paragraphs 3, 5, 8, 10, and 56 adopted by the Accounting Standards Committee of Germany (ASCG) on 17 October 2019. Publication of the authoritative German version by the Federal Ministry of Justice and Consumer Protection under section 342(2) of the HGB on 20 December 2019.

The adoption by the Bundesrat (Federal Council) of the Transparenzrichtlinie-Umsetzungsgesetz (TUG – Transparency Directive Implementing Act) on 15 December 2006, transposing into German law the European Directive of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC, represents a comprehensive revision of the statutory requirement in Germany to prepare and publish interim financial reports.

In particular, the provisions on interim financial reporting have been incorporated into the Wertpapierhandelsgesetz (WpHG – German Securities Trading Act). Selected requirements governing the contents of the half-yearly financial report are stipulated in detail in the Transparenzrichtlinie-Durchführungsverordnung of 13 March 2008 (TranspRLDV – Transparency Directive Implementing Regulation). The obligation to publish interim management statements or quarterly financial reports was abolished when the Gesetz zur Umsetzung der Transparenzrichtlinie-Änderungsrichtlinie (Act Implementing the Transparency Directive Amending Directive) of 20 November 2015 came into force.

This Standard sets out in detail the overarching requirements of the TUG, the Act Implementing the Transparency Directive Amending Directive and the TranspRLDV governing half-yearly financial reporting.

The users affected by GAS 16 Half-yearly Financial Reporting are defined firstly by the obligation under the WpHG to prepare and publish half-yearly financial reports; this applies in principle to all ‘domestic issuers’ (i.e. issuers of shares and debt securities). Secondly, users of GAS 16 are restricted to those entities that are obliged by law to prepare consolidated financial statements and a group management report. Application of this Standard by all other entities is recommended.

A half-yearly financial report contains a condensed set of financial statements, an interim management report and a responsibility statement, and must be published within three months of the end of the half-yearly period. The accounting standards to be applied to the condensed set of financial statements are the same as those to be applied as at the end of the financial year.

In addition to a presentation and discussion of the most important events in the period under review and their effect on the net assets, financial position and results of operations, the interim management report contains a forward-looking description of the material opportunities and risks. If the assessment of the expected development and the associated material opportunities and risks has changed significantly, that fact must be disclosed.

Share issuers must also report on material related party transactions. In the responsibility statement, management states that, to the best of its knowledge, and in accordance with the applicable reporting principles for half-yearly financial reporting, the half-yearly financial report gives a true and fair view of the assets, liabilities, financial position and profit or loss and includes a description of the material opportunities and risks.