Pilot event: International Financial Reporting Days
Accounting experts from the divisions and the Corporate Center met at the HHL
Leipzig, July 12, 2007. The financial reporting requirements of capital-market orientated companies keep changing at a breathtaking pace. Because it issues profit-participation certificates and bonds, Bertelsmann is bound to comply with international guidelines in addition to German accounting regulations. But what exactly do the international financial reporting standards stipulate? What do EU financial market directives mean for legislators in the member states? What financial data would the financial community like to see in Bertelsmann’s financial reports beyond the statutory requirements? These and other questions were addressed by the around 50 participants in the one-and-a-half-day “International Financial Reporting Days” pilot event held in Leipzig at the end of June. Bertelsmann AG’s Corporate Financial Reporting department had invited colleagues involved in financial reporting from Bertelsmann’s divisions all over the world and from the Corporate Center. The International Financial Reporting Days 2007 will serve as the basis for establishing a knowledge-sharing platform which the experts can use to stay on top of the rapid developments in national and international financial reporting guidelines, and their impact on their day-to-day work.
“We need to keep abreast of all changes and updates, for instance to the International Financial Reporting Standards or IFRS, and prepare ourselves for the progressive standardization and formalization of financial reporting,” said Mark-Ken Erdmann, head of the Projects and Policies department (ZKA). Bertelsmann was able to recruit the Handelshochschule Leipzig (HHL – Leipzig Graduate School of Management) as its partner for implementing the event and communicating its content. The HHL is not only Germany’s oldest and – thanks to its practice-oriented approach – one of the country’s best-ranked business schools, but also one of the most reputable of its kind anywhere in the world. It was represented at the IFR Days by Professor Dr. Henning Zülch, who presented “The European House of Gaap” – i.e. the “house” of relevant accounting rules for Bertelsmann modeled on America’s ‘Generally Accepted Accounting Principles.’
Other speakers – from the KPMG auditing firm, the Accounting Standards Committee of Germany (DRSC: Deutsche Rechnungslegungs Standards Committee ), and the private bank Sal. Oppenheim – provided insights into recent developments and took the opportunity to discuss their views with the people attending the event.
One thing is certain: the pilot event was a big success. A subsequent evaluation showed that 90 percent of all participants rated the International Financial Reporting Days in Leipzig as “excellent“ or “good” and felt that the content presented was helpful and pertinent for the tasks they currently face at work. The International Financial Reporting Days are to be held annually around mid-year from now on.