DRSC Logo

 

 

Working practices of the ASCG and its technical committees

 

 

1 Overview
2 Project Identification
3 Measures
4 Public participation / Consultation process

 

 

 

1. Overview

The overarching goal of the work of the ASCG and its technical committees is to enhance the quality of financial accounting and reporting in the public interest.

 

2. Project identification

The ASCG’s work mainly involves projects that address both fundamental issues and specific issues and in-depth problems relating to financial accounting and reporting. Potential solutions to the problems are developed in several stages. The topics addressed comprise financial accounting and reporting issues that are included in the ASCG’s agenda for a variety of reasons.

On the one hand, selected IASB projects in the field of international financial reporting are tracked and addressed in detail. The technical committees adopt a selective approach here since the size of the IASB’s agenda means that it is not possible to track all of its projects. They choose topics that are regarded as material for financial accounting and reporting in Germany. A similar approach is applied to issues addressed by the European Financial Reporting Advisory Group (EFRAG); in this case the EU endorsement process for IFRSs is tracked as a matter of principle, but ASCG staff and technical committees are also involved in selected pro-active projects.

The primary focus in the field of national financial accounting and reporting is on the development of German GAAP and planned legislation in Germany and the EU.

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.

 

3. Measures

Once the topics to be addressed have been identified and the projects initiated, solutions for the specific issues are developed in a range of activities. A variety of instruments are available to the ASCG:

  1. Working groups. For major projects, the technical committees establish working groups, consisting primarily of preparers, auditors, analysts and academics, to provide technical support. The task of the working groups is to analyse and discuss the topics for upcoming deliberation by the technical committees, taking into account IFRSs and German GAAP, as well as the relevant specialist literature, comment letters and practical cases. They then present proposals to the technical committees for further discussion.

  2. Public discussions. The ASCG holds public discussions on specific projects at which interested individuals and organisations are able to comment on various financial accounting and reporting issues. These public discussions allow the technical committees to reach out to a large number of interested parties and to listen to a broad spectrum of opinion.

  3. Publications. Publications by the ASCG and the technical committees may take a variety of forms (e.g. standards, exposure drafts, comment letters, articles in specialist journals, articles on the ASCG’s website). The ASCG and the technical committees use these channels to discuss certain financial accounting and reporting issues and to circulate proposed solutions.

The technical work performed by the ASCG staff covers all the individual instruments. The staff drafts the publications and prepares and follows up the public discussions and the meetings of the working groups.

 

 

4. Public participation / Consultation process

Depending on the nature of the project, the technical committees also have various options for public consultations. To start with, the technical committees hold their meetings in public. This includes firstly a limited option for personal attendance at the meetings, and secondly the ability to follow the meetings through live audio streaming. The audio streaming and the meeting documents and results are archived after the public meetings and made available to interested parties on the ASCG’s website at alt.drsc.de. Interested parties are also given an opportunity to attend public discussions.

Additionally, the ASCG’s constitution provides for a formalised, multi-level due process under which the technical committees develop interpretations of international accounting standards within the meaning of section 315a(1) of the Handelsgesetzbuch (HGB – German Commercial Code) and accounting standards within the meaning of section 342 of the HGB. Interested parties are included in this due process as follows:

  1. Resolution on a draft interpretation or standard by the responsible technical committee adopted by a two-thirds majority

  2. Exposure of the draft with a deadline for public comments of at least 45 days

  3. Publication of comments received (unless the author objects to publication)

  4. Re-exposure of a revised draft in cases where the comments received have resulted in material modification of the draft, coupled with a new public comment period of at least 45 days

  5. Creation of a public discussion forum (e.g. public meeting, Internet forums, or conference calls/videoconferences) on the draft

  6. Adoption of the interpretation or standard at a meeting open to the public

  7. Publication of the adopted interpretation or standard (including dissenting opinions), together with the basis for conclusions.

After their adoption by the technical committee, accounting standards are forwarded to the Federal Ministry of Justice with a request for publication in accordance with section 342 of the HGB. Once an accounting standard has been published by the Federal Ministry of Justice, there is a presumption that its application will lead to compliance with German proper accounting principles for consolidated financial reporting.


 

Important Documents

 

Articles of Govern Body

 


Copyright © 1999-2021, Deutsches Rechnungslegungs Standards Committee (DRSC) e.V. Alle Rechte vorbehalten.