Federal Ministry of Justice

Bonn, 3 September 1998

  

Standardisation contract

 
 

The following

Contract

is concluded between the Federal Ministry of Justice, represented by the Parliamentary State Secretary at the Federal Ministry of Justice, Rainer Funke
  

and   
  

the German Accounting Standards Committee (Deutsches Rechnungslegungs Standards Committee – DRSC), represented by its Chairman, Dr. Juergen Krumnow.  
  

Section 1  
  

(1) The Federal Ministry of Justice recognises the German Accounting Standards Committee in accordance with section 342 of the Commercial Code (HGB) as the competent standardisation organisation for Germany. In accordance with the enclosed Charter of the Association, the German Accounting Standards Committee undertakes to establish an independent standardisation body, to transfer to the latter the functions in accordance with section 342 subsection 1 of the Commercial Code and to finance it in such a way that it is able to perform its functions properly in the framework of the budget set by the Chairman of the Board of Directors. The functions in accordance with section 342 of the Commercial Code shall be carried out free of charge for the Federal Ministry of Justice. The public interest shall be taken into account in performing the functions assigned. The interests of the legislature, public administration and legal relations shall be taken into consideration in developing recommendations in respect of accounting for consolidated group accounting (standards).  

(2) The German Accounting Standards Committee shall guarantee the independence and functionality of the standardisation body of workgroups established by the latter. The Federal Ministry of Justice shall recognise the independence of these bodies; it may attend their meetings without a voting right.  

(3) The Federal Ministry of Justice shall suitably involve the standardisation body iof the German Accounting Standards Committee in all legislation projects concerned with accounting. The German Accounting Standards Committee shall provide the Federal Ministry of Justice with all drafts and adopted standards. In doing so, it shall also be informed whether the notification of the adopted standards is proposed by the Federal Ministry of Justice.  
  

Section 2  
  

In addition to advising the Federal Ministry of Justice, the German Accounting Standards Committee shall also be entitled to submit statements to others via its standardisation body.  
  

§ 3  
  

(1) The German Accounting Standards Committee shall suitably ensure that requests by the Federal Ministry of Justice for the implementation of standardisation work are afforded preferential treatment. The Federal Ministry of Justice may set a suitable deadline to implement a standardisation work.  

(2) During this period, the Federal Ministry of Justice shall neither formulate corresponding regulations itself, unless these are to serve the purpose of legislation or law enforcement or are necessitated by other public interests, nor have them formulated by third parties.   

(3) If a standard is not completed within the set period, the German Accounting Standards Committee shall submit a report to the Federal Ministry of Justice. The Federal Ministry of Justice shall decide whether to consent to an extension of the period or to formulate its own regulation.   
  

Section 4  
  

(1) The German Accounting Standards Committee undertakes to inform the public of its activities. In working out standards the choice of topic, the establishment of benchmark data and adopted drafts shall be notified in a suitable manner.  

(2) A standard may only be adopted if

1. a draft has been previously voted upon and the latter has been published with a period of at least six weeks for comment,  

2. the statements which have been received have been evaluated and the fundamental objections and proposed amendments have been discussed at a public meeting, and  

3. in the event of major changes to the draft the latter has once more been notified with a period for comment of at least four week.  
  

(3) In preparing standards is should be noted that they may not contradict legal provisions. A worthwhile development on the principles of proper accounting is not ruled out thereby.  

(4) It should be noted in the composition of bodies that the interests of those preparing, auditing and using balance sheets are to be safeguarded. Only persons rendering accounts may be members of the standardisation body or of workgroups.  

(5) The German Accounting Standards Committee guarantees that the provisions of the above subsections shall be adhered to by its organs and bodies.  
  

Section 5  
  

(1) The German Accounting Standards Committee shall inform the Federal Ministry of Justice via its standardisation body of events in national and international standardisation and on request shall make its standardisation body available for advisory activities and expert reports in the area of accounting free of charge.  

(2) The Federal Ministry of Justice shall inform the standardisation body of the German Accounting Standards Committee of major events and developments in the area of accounting, of the provisions connected therewith and of EU Directives in the area of accounting insofar as the interests of the German Accounting Standards Committee are affected and no important reasons counter this.  

(3) The Federal Ministry of Justice shall inform the standardisation body of the German Accounting Standards Committee of, or involve it in, major events and developments in international agreements and the activity of official, international organisations involved in matters of standardisation and technical provisions concerned therewith where this is necessary for the implementation of the functions of the German Accounting Standards Committee and no important reasons counter this.  
  

Section 6  
  

The German Accounting Standards Committee undertakes to advise the Federal Ministry of Justice, on request by the latter, via its standardisation body or experts appointed by the latter, and to represent it in international organisations. The German Accounting Standards Committee undertakes to bear the costs thus incurred.  
  

Section 7  
  

The German Accounting Standards Committee shall attempt to contribute to international understanding in the area of standardisation. It shall support commitments entered into by the Federal Government by virtue of international agreements to harmonise and standardise accounting.  
  

Section 8  
  

The German Accounting Standards Committee shall establish an information system on standardisation as a central, generally accessible information and documentation agency on the German standardisation system and – where significant to German accounting – the standardisation system of foreign and internationally recognised standardisation organisations. Their use shall be free of charge for the Federal Government.  
  

Section 9  
  

Without prejudice to the validity of this contract, separate arrangements may be reached in respect of individual specialist areas between the Federal Ministry of Justice and the German Accounting Standards Committee.  
  

Section 10  
  

This contract is concluded for an indefinite period. Each party may terminate this contract at the end of any year by adhering to a period of one year.  
  
  

Bonn, 3 September 1998

Rainer Funke                                           Dr. Juergen Krumnow