Group accounting and international accounting

Group accounting

The task of Group accounting

The task of group accounting is to prepare consolidated financial statements as information on the net assets, financial position and results of operations of a group. The consolidated financial statements are intended to provide information not only to internal company stakeholders, such as management, but also to external stakeholders, such as shareholders, creditors and the interested public. The information provided by the consolidated financial statements is used by management as a tool for managing and controlling the Group.

One of the decisive criteria for the existence of a group is if a parent company can directly or indirectly exercise a controlling influence over a subsidiary.

Consolidated financial statements in accordance with Group accounting

The consolidated financial statements derived from the requirements of group accounting are made up of various components which, taken as a whole, present the Group's net assets, financial position and results of operations as if it were a single company. The consolidated financial statements under commercial law must be supplemented by a group management report; they may be supplemented voluntarily by segment reporting.

The consolidated financial statements must be prepared in accordance with the consolidated financial statements in the first five months of the following consolidated financial year; in the case of capital market-oriented companies, a period of four months applies. They must be published in the Federal Gazette no later than twelve months after the reporting date for the consolidated financial statements, together with the Group management report, the auditor's or auditor's certificate and the report of the Supervisory Board.

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