IDW ES 16 published

On February 28, 2025, the Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW) published the draft of a new IDW standard on the design of early crisis detection and crisis management in accordance with Section 1 StaRUG (IDW ES 16).

§ Section 1 of the Act on the Stabilization and Restructuring Framework for Companies (Unternehmensstabilisierungs- und -restrukturierungsgesetz - StaRUG) requires that managers of limited liability companies continuously monitor the development of the company in order to be able to identify risks that could jeopardize the continued existence of the legal entity at any time and take appropriate countermeasures.

According to IDW ES 16, adequate corporate planning, integrated into a functioning planning process, is essential in order to recognize and assess future negative events at an early stage. This applies regardless of the legal form and size of the company.

Comments on the draft can be submitted until May 12, 2025.

The draft of IDW ES 16 is available on the IDW website at this link.