Standard accounting practice

In accounting standards are principles for financial reporting. They regulate the principles under which an enterprise recognizes, so its balance sheet, its profit and loss account and other documents for reporting on its results, - drawing up financial and earnings position.

The accounting standards are not created by each legislator, but by a panel of experts. They are not directly applicable, but are either accepted by the auditors and implemented during the inspection or converted by the legislature in the law. The adoption of international standards IFRS for example, by an EU regulation into law.

There are national and international accounting standards as well as standards for specific industries and sectors. Known accounting standards are:

• International Financial Reporting Standards (IFRS, formerly IAS) for the international financial reporting which are specially applied for the consolidated financial statements within the European Union (see IASB),
• Financial Accounting Standards (FAS ) for financial reporting in the U.S. (see also U.S. GAAP and FASB)
• Financial Reporting Standards (FRS ) for accounting in the UK.
• German Accounting Standards ( DRS ) for the application of generally accepted accounting principles in Germany (see also GASC).
• Swiss GAAP FER for financial reporting in Switzerland
• Russian Accounting Standards ( RAS or РБСУ ) for accounting in Russia

Basically, the desire to unify the various standards. Especially pronounced is the desire to bring about a unification of IFRS and FAS. The HGB accounting approached to by the Accounting Law Modernization Act international standards.

The most important basis for financial reporting, the Commercial Code ( in Germany ), the Corporate Code ( in Austria ) and partly non-codified principles of proper accounting and tax laws. Companies that operate abroad or whose shares are traded on international markets, must also comply with the regulations of the respective countries, which can lead to conflicting requirements. The accounting standards explain the various national and international regulations. They are combined to complex regulations, compliance with which is supposed to guarantee a valid financial statements. Here, a single standard in each occupied with a single problem. Thus, each set of rules contains a number of individual standards.

Companies in Germany have generally accounted for in accordance with HGB. Annual financial statements according to IFRS since 2005 for the kapitalmarktorienterte corporations and since 2007 for companies required to have the debt securities on the Stock Exchange or listed on a U.S. stock exchange. Consist electoral rights to other companies or the individual financial statements.