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Unformatted text preview: l dominated by a legalistic approach. The accounting system is
part of the legal framework (third book of the Handelsgesetzbuch – HGB – German
Commercial Code), and the process of accounting regulation is the duty of government and
parliament. There is no private standard-setting body in Germany such as those in the US or
UK. Furthermore, there is no consultative body (comparable, for example, to the French
Conseil National de la Comptabilité).
All the principles and rules of accounting which are not included in codified law form the
system of “Grundsätze ordungsmäbiger buchführungI” (GoB – principles of proper
accounting). The Gob are different from the GAAP. Whereas US GAAP comprises all rules
and principles of accounting (promulgated or not), German GoB embrace generally only noncodified rules and principles which have been developed in accounting practice.
Italian accounting is frequently regarded as law-based, tax-driven, and primarily oriented
towards creditor protect...
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This note was uploaded on 05/02/2013 for the course ECONOMIC economics taught by Professor Economics during the Fall '13 term at Elmont Memorial High School.
- Fall '13
- The Land