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On 14 November 2024, the Institute of Public Auditors in Germany (IDW) sent out a circular to its members highlighting the consequences of a delayed transposition of the Corporate Sustainability Reporting Directive (CSRD) into German law. A summary of this was published on the IDW website today.

The CSRD still has to be transposed into national law as EU law. In July 2024, the government draft of the German government's implementation law was published. The legislative process is therefore not yet complete.

Based on an independent legal opinion, the IDW clarifies in its letter that if the legislative process is not completed by 31 December 2024 and the law does not come into force by the end of 2024, the current legal framework for non-financial (group) reporting obligations created by the CSR-RUG from 2017 will remain valid for 2024.

The IDW also highlights the following aspects:

  • No immediate application of the CSRD in the event of non-implementation,
  • No retroactive application to completed financial years,
  • Non-financial reporting for the year 2024 based on the European Sustainability Reporting Standards (ESRS)
  • No applicability of the so-called fee cap to audit services.

A summary of the contents of the members' circular is available on the IDW website.

KPMG Express Accounting News

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