Abstract
The Emissions Scandal in 2015/16 and its Impact on the World?s Biggest Automobile Manufacturer, Volkswagen AG
Highlights
Regulatory framework for financial reporting of Volkswagen AG in GermanyGerman HGB (Handelsgesetzbuch) reporting: German financial reporting is regulated by the Handelsgesetzbuch, the German commercial code [1]
German companies are complying with these standards when creating their financial statements
The VW scandal can be handled well as for but if the reputational damage continues to pull down car sales, it can lead to major problems for the company
Summary
German HGB (Handelsgesetzbuch) reporting: German financial reporting is regulated by the Handelsgesetzbuch (short: HGB), the German commercial code [1]. Volkswagens accounting methods: According to § 325 Phrase 2a HGB capital-market oriented corporate groups like Volkswagen AG are entitled to choose between IFRS and HGB-reporting. In 2015 Volkswagen AG was preparing its financial statements according to both (newest) IFRS standards [5] and German HGB-reporting [6]. Assets: The balance sheet of Volkswagen, according to HGB as per December 31, 2015 shows a Total of Assets of 133.496 million Euros. Liabilities: In the Annual Financial Statement of Volkswagen AG from 2015 according to HGB reporting, the liabilities as per December 31, 2015 are denoted with 61.139 million Euros [7]. Equity: The Annual Financial Statement of Volkswagen in 2015 shows equity of 24.368 million Euros as per December 31, 2015. In 2013 income tax expense of Volkswagen AG in Germany was 2.173 million Euros (HGBreporting) and in 2014 it was 2.073 million Euros (HGB-reporting) [9]. These additional costs are not yet considered in the financial statements of the recent years and carry further cost-risks, which are not yet certain to be quantified
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