Professional translation companies know the subtle differences in translating annual reports into English in accordance with HGB, UGB and IFRS
Both as a basis for determining taxable profits and a source of information for diverse target groups, a company’s annual business report is particularly valuable. This kind of annual report for medium-sized and large companies is made up of a progress report and an annual financial statement, which in turn contains the balance sheet and profit and loss account. Large companies enhance their reports with a foreword by the Management Board, market analyses and an insight into the company’s activities. So far, so good.
However, there are now various local reporting systems. The German-speaking countries (DACH region) alone have three different ones – in Austria, there is the Unternehmensgesetzbuch (UGB = Commercial Code), Switzerland has the Obligationenrecht (Code of Obligations) and Germany has the Handelsgesetzbuch (HGB = Commercial Code). Each form of the German language has its own peculiarities, both in general speech and in specialist terminology for financial reports. In order to make the annual report accessible for the entire DACH region, writing in standard German is recommended.
However, often the entire world needs to be informed of a company’s economic situation. The reason for this is that international investors are a significant presence on the DAX, ATX and SMI. Companies have two options here for reaching their shareholders and analysts worldwide:
1) Translate their existing annual report into English or several other target languages.
2) Also produce their legally required annual report in accordance with the International Financial Reporting Standard (IFRS).
The latter option makes the achieved results comparable between international companies. Companies listed on the Prime Standard are also required to balance the books as per the IFRS. As soon as a company or a holding company exists, national and international rules and standards must be followed, e.g. a parent company must balance according to the IFRS and an Austrian subsidiary according to the UGB.
As an established translation agency in the DACH region, EVS Translations has particular expertise in financial translation and reporting. With one of the largest in-house teams of translators for translating German annual reports into English and vice versa, we understand every nuance and every financial term in the German language – in Austrian German, Swiss German and standard German, including the English equivalents.
If you have specific questions about translating annual reports, we can be reached on +1 404-523-5560 or at firstname.lastname@example.org. We look forward to hearing from you!