Preface

Accounting is one of the core topics of any business administration study programme. For most German companies German Generally Accepted Accounting Principles (GAAP) based on the Commercial Code are the relevant accounting standard, even if in times of globalization international accounting has become more frequent.

Thus, any German student of business administration needs to have a basic understanding of accounting according to German GAAP. But globalization pays its toll here as well: At Pforzheim University (and probably at other universities in Germany as well) we offer courses about German accounting in English to improve the language skills of our students. So far, we have done that without a textbook covering lecture topics in detail.

Globalization pays its toll in another way as well: Many German companies have subsidiaries in other countries. If these German parent companies must prepare consolidated financial statements according to the Commercial Code, the subsidiaries need to apply German GAAP. Typically, this is done by a detailed accounting guideline which not only explains German GAAP to the extent necessary but also clarifies the specific recognition and measurement methods that must be applied. Nevertheless, for new employees in these foreign subsidiaries, a textbook explaining the basic concepts without going into too much detail might be helpful.

I tried to write a book that would appeal to both audiences: students learning about German GAAP in English and professionals looking for explanations when preparing data for consolidated financial statements. I hope I was able to strike the right balance between too much and too little detail so as not to overload the students while still being helpful for professionals.

With great diligence I have tried my best to eliminate any errors. If, despite my best efforts, you find any mistakes, inaccuracies, or omissions, or if you have suggestions for improvements, please let me know: [email protected]

Pforzheim, October 2017

Robert Nothhelfer