IDW RS FAB 5

On 28 August 2024, the Expert Committee on Corporate Reporting (FAB) of the Institute of Public Auditors in Germany (IDW) adopted the final revised IDW Statement on Accounting for Foundations (IDW RS FAB 5, formerly IDW RS HFA 5).

As part of the finalisation of IDW RS FAB 5, a number of clarifying additions and adjustments were made compared to the draft of the revised pronouncement published in December 2023 (we reported on the draft in Express Accounting News 45/2023).

The additions concern, among other things, the preservation of the foundation’s basic assets and the updating of the footnotes due to the amendments to other state foundation laws that have been made in the meantime.

The focus of the revision was on the reform of foundation law, which has partially modernised private foundation law. In the area of accounting, the structure and items of the foundation's assets and equity were standardised nationwide for the first time.

The adoption of the revised IDW RS FAB 5 was announced in a press release on the IDW website.

The announcement will be published in issue 10/2024 of IDW Life.