Financial Issues in Germany due to Convergence of Accounting Policies

Running head: FINANCIAL ISSUES
Financial Issues
Name of the Student
Name of the University
Author Note

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FINANCIAL ISSUES
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Whether German is being able to fulfil the IASB objectives......................................................2
Issues faced by Germany due to the Convergence of the Accounting policies...........................3
Conclusion.......................................................................................................................................4
References........................................................................................................................................4

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FINANCIAL ISSUES
Introduction
The IASB stands for International accounting standard board is an independent body that
sets standards for the International financial reporting standards (IFRS). It was founded on first
of April 2001 to promote and provide applications for the standards for reporting. The primary
objective of the body is to set the standards of accounting for systematic presentation of the
company books (Li et al.2017). The issue has taken place at present that the Germany is facing
due to the convergence of the accounting policies worldwide.
Discussion
Whether German is being able to fulfil the IASB objectives
After analyzing the information from the case study of Germany contextual issues of
convergence of International Financial Reporting Standards accounting (Hellmann, Perera and
Patel 2010), I can say that the objectives of IASB in this case, is not achieved. The accountants
of Germany face problem in the interpretation and the application of the reporting standards, as
in most of cases they lack in knowledge (Eierle et al.2018). The main issue according to me is
the standards set by the IASB are complex and it needs specified knowledge to understand them.
Moreover the rules and regulations in Germany are determined by the EU legislation, the
standards set by the IASB are not consistent.
Then comes the issue of expense, many individuals in Germany consider as being too
expensive to implement especially for the small and medium sized companies. They also think
the standard set by the IASB are irrelevant as it can be interpreted in number of ways
(Christensen et al.2015). Facilitation of convergence and application of IFRS in the Germany