Handelsgesetzbuch (German Commercial Code / German GAAP)
All termsThe statutory accounting framework governing German legal entities, prioritizing creditor protection and strict prudence.
The German Commercial Code (Handelsgesetzbuch - HGB) establishes statutory financial accounting rules for German enterprises (*Handelsbilanz*). Unlike IFRS, which emphasizes investor information and fair-value reporting, HGB is strictly anchored in creditor protection (*Gläubigerschutz*), historical cost principles, and the prudence principle (*Vorsichtsprinzip*).
Governs the statutory balance sheet recognition of carbon debts and environmental liabilities. Under § 249 Abs. 1 HGB, unresolved carbon liabilities must be booked as uncertain provisions, while § 248 Abs. 2 HGB prohibits capitalizing self-generated carbon insetting assets.
Statutory provision booking: Provisions = MAX(0, Gross_Emissions - Verified_Surrendered_Insets) * Statutory_Shadow_Price (€45.00/t). Imparity principle (§ 252 Abs. 1 Nr. 4 HGB) requires unrealized losses to be booked immediately.
HGB rules apply to German statutory standalone financial statements and do not supersede consolidated IFRS group reporting where international standards apply.