Why Does German Accounting Practice Differ from IFRS

question 22

Multiple Choice

Why does German accounting practice differ from IFRS?

• A)German accounting rules are much more specific in most areas than IFRS.
• B)German accounting law is less specific in some respects than IFRS.
• C)Germany has not adopted a policy on accounting standard harmonization.
• D)Germany is not interested in foreign direct investment.

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Definitions:

House of Commons

The lower house of the Parliament of the United Kingdom, responsible for making and passing laws.

Employer Demands

Requirements or conditions set by employers during negotiations with employees or unions regarding salaries, working conditions, and other employment terms.

Voluntaristic System

An approach to labor relations in which union membership and worker representation are matters of individual choice rather than legal requirement.

Relative Bargaining Power

The comparative power or leverage one party has over another in negotiation settings, often influenced by economic, legal, or situational factors.