Adoption History
In lieu of the EC Regulation 1606/2002 which made it mandatory for all EU listed companies to adopt IFRS in their financial statements, Germany followed suit and all listed companies in Germany are required to file their consolidated financial statements in line with the IFRS.(eStandardsForum, 2008) For information purposes all companies in Germany are allowed to use IFRS however, for profit distribution, taxation purposes and financial services supervision the German Commercial Code (HGB) is required which contains the national accounting standards. (eStandardsForum, 2008) In addition, for statutory filings the use of IFRS is only permitted for consolidated financial statements and not for separate financial statements (PwC, 2009). In November 2007, the German Parliament passed the German Accounting Law Modernization Act which seeks a closer alignment of national accounting standards and practices with IFRS. Nevertheless, in April 2009 through the Act to Modernize Accounting Law, Germany stuck to preferring national laws for small-medium sized companies and considered IFRS “cost-intensive and highly complex”(Deloitte IAS PLUS, 2009). Currently, Germany is at Stage II of the adoption process.  
Deloitte IAS PLUS. (2009). Accounting Standards Update by Jurisdiction. Retrieved June 6, 2009, from Deloitte IAS PLUS:
Foundation, e.-S. F. (2008). International Financial Reporting Standards- Germany. Retrieved June 6, 2009, from e-Standards Forum Financial Standards Foundation:
Price Waterhouse Coopers. (2009). IFRS adoption by country. Retrieved June 6, 2009, from Price Waterhouse Coopers: