Chapter 2 Flashcards
(8 cards)
What is financial regulation?
Financial regulation refers to the laws and standards that govern how financial information is prepared, presented, and disclosed to ensure accuracy and transparency.
What are IFRS Standards?
IFRS Standards are international accounting standards that provide guidelines for financial reporting to ensure consistency and comparability across countries.
Why do companies need to prepare consolidated financial statements?
Companies prepare consolidated financial statements to provide a comprehensive view of the financial position and performance of the entire group, including subsidiaries.
Who must comply with IFRS in Germany?
Publicly traded companies and certain large private companies must comply with IFRS in Germany.
What are the minimum elements of an annual financial statement?
The minimum elements typically include the balance sheet, income statement, cash flow statement, and notes to the financial statements.
Does Auto AG have to prepare consolidated financial statements according to IFRS?
Yes, Auto AG must prepare consolidated financial statements as it is listed in the MDAX and has significant subsidiaries.
Does Schickeria München Bar GmbH have to prepare consolidated financial statements according to IFRS?
No, Schickeria München Bar GmbH does not need to prepare consolidated financial statements because it is not listed and does not have any subsidiaries.
Find an annual report according to German GAAP (HGB) and IFRS.
You can find annual reports on the Bundesanzeiger or the investor relations sections of company websites. Look for specific reports that comply with HGB (German Commercial Code) and IFRS standards.
