Authorised and regulated by the Financial Services Authority

Accounting basis

Differentiated balancing systems.

Differentiated balancing systems.

There are marked differences between the HGB (German commercial code), International Accounting Standards (IAS), General Accepted Accounting Principles (US-GAAP) or other National Accounting Standards (NAS).

The HGB mainly serves to protect the creditors of a company, while balance sheets compiled under IAS and US-GAAP focus more on the interests of the shareholders.

The US-GAAP regulations are the strictest, because they allow the least managerial freedom. Similar to the HGB, the IAS regulations allow more valuation alternatives.

Source: RWE Stock Market Dictionary

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