ABSTRACT
The EC Seventh Directive and the EC Fourth Directive were both implemented on 15 December 1985 in the Third Book of the German Commercial Code (Handelsgesetzbuch) (see Chapter 7). According to Articles 2, I and II, of the Introductory Law of the Commercial Code, the new accounting principles have to be applied to companies’ financial statements and consolidated financial statements relating to business years starting no later than 31 December 1986 and 31 December 1989 respectively. Since 1986, outside financial analysts have been confronted with company and consolidated accounts issued by German companies which have been drawn up according to the new accounting principles.
