Key facts about the ASCG

 Objectives and tasks

The association was founded with the objectives of:

• promoting the further development of financial reporting in the public interest by bringing together those that show an interest in the technical world of financial reporting, particularly accountants;
• being recognised by the Federal Government as the German Standard Setter, supported in its goals and heard as a competent advisor, without compromising the sovereignty of the legislator and the courts;
• representing the views of German Industry in the area of financial reporting internationally; and
• to provide technical support for the transformation towards an increasingly broad understanding of accounting and reporting and to integrate this into the work of its standing committees. Significant impulses must be acted on, especially those from the area of sustainability reporting. The EU Green Deal is resulting in new reporting requirements for a broad spectrum of German companies. This applies equally to developments at international level, where the IFRS Foundation is establishing the basis for consistent international standardisation in this area.

On the basis of these three overarching objectives six tasks have been formulated for the ASCG, which are codified in paragraph 2 section 1 of its Constitution. Accordingly, the ASCG shall, in the public interest:

1. Develop recommendations for the application of GAAP in the area of group financial reporting;
2. Advise the Government on legislative affairs domestically and at the EU level in the area of financial reporting;
3. Represent the Federal Republic of Germany in international fora concerned with financial reporting;
4. Develop interpretations on International Financial Reporting Standards pursuant sec 315e (1) of the Commercial Code;
5. Raise the quality of financial reporting generally; and
6. Promote research and education in the aforementioned fields.

The first four areas mentioned above are a direct consequence of the ASCG’s legal mandate pursuant sec 342 of the Commercial Code and the Standardisation Agreement. The latter also mentions raising the quality of financial reporting generally as another area for the ASCG.

The ASCG also decides to address topics for which there are gaps or a need for change in national and international financial accounting and reporting. In addition the ASCG’s agenda includes advisory projects for the Federal Ministry of Justice.

 Processes

The technical work of the ASCG is largely carried out through its two Technical Committees, which are represented by the President and Vice President of the ASCG. With the structural change as of December 2021, the technical work is now distributed among the Financial Reporting Technical Committee, the Sustainability Reporting Technical Committee, and the Joint Technical Committee.

The Financial Reporting Technical Committee’s remit is to actively follow and comment on the work of the IASB/IFRS Interpretations Committee as well as of EFRAG and to develop recommendations on the application of GAAP in the area of group financial reporting.

The Sustainability Reporting Technical Committee with its particular expertise from German perspectives attends to matters of international and European standard-setting activities in the field of sustainability reporting.

The Joint Technical Committee becomes active when reporting issues apply equally to and are relevant for both technical committees.

Both Committees are supported by Working Groups which allow the Committees to revert to experts with subject matter and/or industry-related knowledge.