What are the fundamental differences between HGB and IFRS?

German local GAAP, creditor-protection oriented, more conservative, tied to legal capital maintenance and tax-accounting history.

International reporting framework, investor-oriented, focused on decision-useful information, fair value, and economic substance.

• HGB tends to be more conservative.
• IFRS uses more fair value and impairment testing.
• IFRS often requires more notes and segment disclosure.
• Revenue, leases, pensions, provisions, and goodwill can differ materially.

HGB-to-IFRS conversion can change EBITDA, equity, net debt, working capital, and valuation multiples without changing the underlying business.