Group accounting

As a group, accounting refers to any actions and organizational measures to prepare and publish consolidated financial statements under generally accepted accounting principles.
Since the mid-20th Century have increased concentrations of a group of companies steadily. Modulating the corporations have become more international, both in terms of belonging to their company, and in view of the markets in which they operate. Following this development, more and more companies legally obliged to draw up complete financial statements. By the obligation or the right to vote consolidated accounts in accordance with International Financial Reporting Standards (IFRS), many countries do make the consolidated financial statements of companies of their country internationally comparable.
In Germany, with the Companies Act of 1965 initially required only listed companies to corporate accounting. With the Disclosure Act of 1969, the group accounting requirements has been extended to large companies with parent companies in other legal forms. Following the implementation of the 7th EC directive on the standardization of company law of 1983, the national rules on corporate accounting in the European Community, now the European Union (EU), converged. In Germany, the directive was implemented by the Accounts Directive Act of 1985, which introduced the basic provisions for consolidated accounts in the Commercial Code. In Austria, the Group accountability was first introduced by the Accounting Act of 1990, which entered into force on 1.1.1994. From 1998 to 2004, allowed the German legislator publicly traded parent company financial statements in accordance with international accounting rules, such as drawn up in accordance with IFRS or U.S. GAAP instead of consolidated financial statements in accordance with German commercial law. However, an EU regulation in 1992, publicly traded companies in the EU for the fiscal years beginning after 31.12.2004, required financial statements in accordance with IFRS set up, which were accepted by the EU through an endorsement process. Germany has taken by the Member State options made to all other companies should be given the right to vote, shall present consolidated financial statements according to commercial law, or IFRS.