Johannes-Cornelius Adari

Introduction of IAS / IFRS by the BMW AG in 2000: Needs, effects and consequences for the group Johannes-Cornelius Adari

Bachelorarbeit, die am 12.02.2004 erfolgreich an einer Universität in Niederlande im Fachbereich Economics eingereicht wurde. Abstract: This case study deals with an important financial aspect of multinational companies, i.e. their obligation of accounting. Until the year 2000, BMW used to prepare its annual external audits under German Commercial Code Standards (HGB). This tradition ended in 2000, when BMW accounted under "International Accounting Standards" (IAS) for the first time. 7 years before, Mercedes-Benz was the first German automotive manufacturer adopting international Standards in 1993. But in Mercedes' case "US-Generally Accepted Accounting Principles" (US-GAAP) were chosen, because the objective was to become listed at the "New York Stock Exchange" (NYSE). At this time US-GAAP were not accepted outside the "North American Free Trade Association" (NAFTA), esp. not by the EU Commission, but the US-Principles were applied in the largest and most important stock market worldwide. On the other hand, US organizations like the "Securities and Exchange Commission" (SEC) did not accept any other accounting standards in these days. Accordingly, Mercedes-Benz had to prepare two annual audits: one under US-GAAP and the other under HGB. This treatment, obviously, was highly inefficient, providing lots of encumbrances to US-capital-seeking European companies: accounting and auditing took too much time, personnel resources and money. Another negative effect was that many US companies hesitated with urgently required investments in Europe. But nevertheless, multinational groups seemed to have several advantages by using international accounting standards, even if they had to prepare more than one audit annually. Within the 1st part, this case study provides basic information dealing with accounting standards, in particular reasons and objectives, organizational patterns and the process of IAS becoming international