Handelsgesetzbuch - HGB

AAA

DEFINITION of 'Handelsgesetzbuch - HGB'

A law that governs the primary commercial code for companies in Germany. Included in the law is regulation related to the preparation of financial statements. This law is similar to GAAP, which is followed in the United States.

INVESTOPEDIA EXPLAINS 'Handelsgesetzbuch - HGB'

The commercial code of Germany was first established on May 10, 1897. In 1998, the code was adapted to conform with new laws within the European community. The HGB has also been used in Austria since 1938. However, on January 1, 2007, the HGB will be replaced by a new unified commercial code called the Unternehmensgesetzbuch (UGB). This will be a modernized version of the HGB.


RELATED TERMS
  1. Cook The Books

    A buzzword describing fraudulent activities performed by corporations ...
  2. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
  3. International Accounting Standards ...

    An older set of standards stating how particular types of transactions ...
  4. Bundesbank

    The central bank of Germany. The Bundesbank is the U.S. equivalent ...
  5. Common Size Financial Statement

    A company financial statement that displays all items as percentages ...
  6. Licensed For Reinsurance Only

    A license that allows a company to engage in services related ...
Related Articles
  1. Accounting Rules Could Roil The Markets
    Bonds & Fixed Income

    Accounting Rules Could Roil The Markets

  2. Top 8 Ways Companies Cook The Books
    Personal Finance

    Top 8 Ways Companies Cook The Books

  3. Detecting Accounting Manipulation
    Fundamental Analysis

    Detecting Accounting Manipulation

  4. A Case Study: Earnings Manipulation ...
    Investing

    A Case Study: Earnings Manipulation ...

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center