GERMANY - The introduction of BilMoG, the German modernisation of domestic HGB accounting rules for unlisted companies, is set to be introduced on schedule according to the German ministry of justice (Bundesjustizministerium).
IPE had earlier learnt from people close to the matter within the ministry that important parts of the so-called Bilanzrechtsmodernisierungsgesetz - BilMoG in short - would only be introduced in 2010 rather than 2009 as originally planned, to give the corporations involved enough time to implement the changes.
Offiials at BVI, the fund industry association, also told IPE the delay is also the point at which the discussions regarding the modernisation had reached as far as the BVI was aware.
However, a spokeswoman of the ministry has now told IPE BilMoG will be introduced from early next year.
The legislation reforms the domestic HGB accounting law for unlisted companies, and includes mark-to-market reporting for the pension obligations.
On face value, it should mean these more companies will opt to fund their obligations, as the DAX-listed companies and the larger firms have done since 2003.
BilMog proposals have been met with criticism in the past as Raimund Rhiel, chief executive at Mercer Germany, argued the changes to the German accounting standards HGB will increase pension obligations significantly. (See earlier IPE article: Accounting reform to 'double pension burden')
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