Section 314(1) no. 6 of the Handelsgesetzbuch (HGB – German Commercial Code) forms the basis for GAS 17, the objective of which is to clarify existing uncertainties relating to the application of these provisions. Application to reporting obligations in the annual financial statements, with the necessary modifications, is recommended.
For non-share-based payments, the Standard also stipulates the conditions under which these benefits are considered to have been granted in accordance with section 314(1) no. 6(a) sentence 1 of the HGB. This in turn determines the financial year in which the benefits granted are disclosed. This is the case if a legally binding award has been made to the governing body member and the activity on which the award is based has been performed. In the case of an award subject to a condition precedent, this means that the disclosure shall only be made once the condition has been satisfied in full; in the case of an award subject to a condition subsequent, it is only clear once the condition has lapsed that the right cannot be forfeited at a later date. The corresponding disclosure shall therefore only be made in the financial year in which the condition subsequent lapses.