- Language: English
- Published: August 2013
- Region: Germany
German Corporate Accounts Confirm That Cash is Fact, but Earnings are Opinion Apr 02
- Published: April 2002
- Region: Germany
- Standard & Poors
It is widely acknowledged that financial statements prepared under the German Commercial Code, or Handelsgesetzbuch (HGB), allow companies a certain amount of leeway in terms of creditor protection. Specifically, they enable Germany-based entities to stretch the principle of prudence and stifle the true earnings position in favor of tax requirements. Furthermore, HGB accounting principles give considerable scope in terms of discretion (Ermessensspielraum)--that is, the options available in the treatment of business transactions. This does not necessarily mean that the credit quality of German companies is more difficult to assess, however. Using statements prepared in accordance with the German Accounting Standard No. 2 (GAS 2) and found generally in many consolidated annual reports now required for stock exchange-listed companies, Standard &...
Companies mentioned in this report are: Robert Bosch GmbH,Volkswagen AG,DFS Deutsche Flugsicherung GmbH,Sirona Dental Systems SARL,Deutsche Bahn AG,Coca-Cola Erfrischungsgetraenke AG,Callahan Nordrhein-Westfalen GmbH,Franz Haniel & Cie GmbH
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
SHOW LESS READ MORE >
Robert Bosch GmbH,Volkswagen AG,DFS Deutsche Flugsicherung GmbH,Sirona Dental Systems SARL,Deutsche Bahn AG,Coca-Cola Erfrischungsgetraenke AG,Callahan Nordrhein-Westfalen GmbH,Franz Haniel & Cie GmbH