Deloitte study investigates the application of IFRS 3 in practice, its problems and potentials

The last year introduced the new International Financial Reporting Standards (IFRS) have partially drastic jumps in corporate profits led. From 2005/2007, the application of IFRS for a large part of German companies mandatory. Similar changes in the company results are again expected. The IFRS accounting figure used for purchases of companies and a resulting goodwill or goodwill. 

Although the companies concerned, nor the recent amendment to implement the International Accounting Standards Board (IASB) again together with the U.S. Financial Accounting Standards Board (FASB) additional changes in the accounting of goodwill decided. The goodwill balance is therefore continuing in motion. 

A Deloitte study the accounting practices of German firms is investigating the problem and the current balance of political maneuver, by which companies could use the innovations. Prof. Dr. Bernhard Pellens, Chair for International Management Accounting at the Ruhr-University Bochum and Deloitte refers in its wide-ranging empirical study on the Prime Standard listed company. Investigation was the subject of the affected companies dealing with the new standards. A comparison with the experience of U.S. GAAP balance sheet, with a similar amendment has already few years ago were confronted concludes the study. 

Representatives from science and practice had already before the adoption of the rules expressed fears that the comparability of company accounts by the existing valuation options decrease and the auditable by the Auditor is restricted. 

"A large part of the German company creates new opportunities for companies from inadequate control. Primarily, they want to meet the legal requirements," says Peter Ruhwedel, CFO Services Senior Manager at Deloitte. "The detailed view of our findings shows that the new rules positive potentials, particularly in the acquisition of controlling, for the company." 

Deloitte Germany 

Deloitte is one of the leading auditing and consultancy companies in Germany. The wide range of services includes audit, tax, consulting and corporate finance advice. With over 3,200 employees in 18 offices Deloitte for more than 90 years, companies and institutions of any size and legal status of nearly all sectors of the economy. About the composite is Deloitte Touche Tohmatsu Deloitte with 120,000 employees in nearly 150 countries around the world. 

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