Imperfect harmony

Article Abstract:

Bayer, Heidelberger Zement, Hoechst and Schering were the first companies in Germany to adopt International Accounting Standards (IASs). In 1994, they managed to align their consolidated financial statements with the standards by identifying the most suitable options in the country's accounting law. The four companies did not have to introduce as many changes as first expected since all of them have been making efforts to comply with internationally-accepted accounting principles for several years. However, the differences in how they applied IASs worry observers because of a lack of comparability. Heidelberger Zement restated its opening balance of property and equipment to adjust its revenue reserves. Bayer also adjusted is profit for the year, but did not restate its opening balance of property, plant and equipment. Hoechst and Schering, for their part, made adjustments only in their pension liabilities.

Germany, Corporations, Corporations, German

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Aid for the developing world

Article Abstract:

The International Accounting Standards Committee (IASC) helps developing countries lacking resources to establish their own accounting standards requirements. Most international accounting standards (IAS) apply equally well to developing countries but the IASC has developed standards that specifically address certain developing countries' needs, including: foreign exchange rates; property, plant and equipment; and related party disclosures. The IASC encourages countries to adapt the IASC's IAS to their local conditions and legal structures. The IASC is instituting a study of the needs of developing countries and how to improve and harmonize IAS. The review will probably underscore the danger of implementing IAS as a national accounting regime without first adapting them to a nation's due process and the needs and culture of the country.

Developing countries

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Compliance must be enforced

Article Abstract:

The focus of the International Accounting Standards Committee's (IASC) efforts to enforce international accounting standards (IASs) has shifted from mere use of the standards to full compliance. It has taken an important step toward this goal by issuing revised IAS 1, 'Presentation of Financial Statements.' This standard requires companies to state that their finacial statements are IAS-compliant only if they have complied all IASs and IASC interpretations. It specifically targets firms whose statements disclose that some IAS components have not been complied with, fail to explain why certain information are not reported, or apply accounting policies that are not approved by the IASC. Examples of partial compliance are provided.

Financial statements

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