New German pension accounting standard postponed
GERMANY – The German accounting standard for pension obligations, DRS-19, which was expected to be approved by the Ministry of Law this summer, has been postponed indefinitely.
The standard covered the accounting of pension obligations and would have been valid for all five types of German pension promises and similar liabilities. The draft was published by the “Deutsche Rechnungslegungsstandardkomitee” (DRSC - German Accounting Standard Committee) in March this year.
However, unexpectedly, the accounting standard has been withdrawn by the DRSC and postponed “for an uncertain period.”
Liesel Knorr, general secretary at the DRSC, said that following a number of external and European changes, it had been decided to concentrate on an international accounting standard, and leave the local German accounting standard to one side. Bigger companies, which will be more greatly affected by accounting standards, would use an international accounting standard, she said, as banks look set to implement IAS as a form of benchmark. Smaller companies, which would use a local accounting standard, are not in need of such strict regulations as their pension provision is smaller and simpler.