Handelsgesetzbuch (HGB) Definition:
The Commercial Code (HGB) is a law that governs the most important business code for companies in Germany. The law contains rules for preparing financial reports and sets out guidelines and best accounting practices. These laws are similar to the GAAPs that apply in the United States.
- The Commercial Code (HGB) is a German business code and accounting standard that sets out how companies should prepare and publish their financial statements.
- The HGB applies a number of company rules and regulations regarding the treatment of employees.
- In many respects, the guidelines set out in the German Commercial Code are similar to those in the US GAAP and IFRS, but they are also different in some respects.