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Preparation of Accounting Guidelines and Manuals

The basis for efficient reporting and corporate management is the uniform application of accounting and valuation principles and internal procedural instructions. An accounting manual is essential to ensure that a company’s net assets, financial position and results of operations are presented correctly and reliably, even in complex circumstances. However, accounting manuals are often not up to date, difficult to read and not very practice-oriented with regard to an individual company.

Increasing Efficiency and Effectiveness in Accounting

In order to increase efficiency and effectiveness in accounting, it is necessary to have a detailed overview of the relevant accounting and valuation principles in accordance with the German Commercial Code (HGB) and IFRS as well as the financial key performance indicators (KPIs) in the company and in the Group. An accounting manual is also an important aid for avoiding liability risks and fulfilling the due diligence obligations of a prudent and conscientious managing director (Section 43 (1) of the German Limited Liability Companies Act (GmbHG), Section 93 (1) of the German Joint Stock Corporations Act (AktG), and also the American Sarbanes-Oxley Act for companies listed on a US stock exchange). Accounting guidelines ensure that even complex accounting issues (e.g. pension obligations, financial instruments, deferred taxes, etc.) are correctly reflected in the annual financial statements.

Preparation and Updating of your Accounting Guidelines and Manuals

The accounting manual provides uniform guidelines for the accounting and valuation in companies, corporations and Groups. When the manual is prepared or updated, it is necessary to include all the relevant guidelines in accordance with the German Commercial Code (HGB) or IFRS, clarify questions relating to the accounting of complex issues, and prepare uniform documentation for accounting and valuation topics related to individual and consolidated financial statements, including the associated Notes to the financial statements. Furthermore, it also maps the necessary cross-connections to the respective internal Group reporting requirements, for cost accounting and taxes. The accounting manual is prepared or updated with the company-specific organizational structure and processes and the associated KPIs being taken into account. It is also important that all relevant departments (e.g. controlling, human resources, etc.) are involved beyond the accounting department. In order to keep the manual current, it is advisable to update it regularly due to ongoing accounting developments.

FAS AG as a Partner for the Preparation of your Accounting Guidelines and Manuals

FAS AG supports the preparation and updating of an accounting manual adapted to the needs of the company, corporation or Group in accordance with the German Commercial Code (HGB) and/or IFRS. This ensures a detailed overview of the relevant accounting and valuation principles and financial key performance indicators (KPIs). The focus is on the practical relevance for the respective company, not on the pure reproduction of accounting standards. The optional involvement of colleagues from WTS ensures that the accounting and valuation is also correct in terms of taxes and, in the case of options, is optimized for tax purposes from the company’s point of view. We can draw on a large pool of existing manuals that we have prepared, and can act flexibly and efficiently. In addition, we are happy to support you in the roll-out of the manuals, for example in the context of online and offline training, coaching or auditing activities.

If you are interested or have any questions, please contact us.

 

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 Hans-Georg Weber Partner