HGB FAQ

What triggers the HGB consolidation obligation?

The obligation arises from control under §290 HGB — where a parent can exercise a controlling influence over another company. The §293 size thresholds govern a size-based EXEMPTION from the obligation — they do not trigger it.

What is the §293 size exemption?

Under §293(1) HGB (2024 thresholds), a parent may be exempt if the group meets at least 2 of 3 criteria on 2 consecutive balance sheet dates: balance sheet total ≤ €30M, revenue ≤ €60M, and average employees ≤ 250.

How does HGB goodwill treatment differ from IFRS?

Under HGB, goodwill is amortized on a scheduled basis over its useful economic life — 10 years by default where life cannot be reliably estimated. Under IFRS (IAS 36), goodwill is not amortized — it is tested for impairment annually.

What is the Eigenkapitaldifferenz and why is it not OCI?

The Eigenkapitaldifferenz aus Währungsumrechnung is the translation difference arising under §308a HGB from translating foreign subsidiary equity at its fixed historical rate while assets and liabilities are translated at the current closing rate. HGB does not have a concept of OCI — that is IFRS/US-GAAP terminology. The Eigenkapitaldifferenz is posted within equity after reserves.

Is deferred tax on PPA mandatory under HGB?

Yes. Under §306 HGB, deferred taxes on consolidation measures — including PPA fair-value step-ups — must be recognized. The only carve-out is §306 Satz 3, which excludes the goodwill or negative goodwill difference itself.