Fair Value v Acquisition Cost

In this era of globalisation many changes are taking place on the world market. The German Federal Government accordingly has recently felt pressured to fight off competition.¹ Therefore to make German accounting law internationally more sustainable — especially in the context of IFRS accounting² — essential legal reforms were necessary. Hence after years of discussions the German Commercial Code has recently been subject to some vital material changes concerning accounting law. The new German Act to Modernise Accounting law³ came into force on 29 May 2009⁴ and constitutes the most important reform in German accounting law in the last two decades.⁵ Through this Act national accounting has hopefully been given...