Grundsätze ordnungsmäßiger Bilanzierung, commonly referred to as GoB, is a set of principles that govern the proper accounting practices for businesses and organizations in Germany.

These principles lay the foundation for the preparation and presentation of financial statements, ensuring their accuracy, consistency, and transparency. GoB serves as a guiding framework for companies to comply with legal requirements, satisfy stakeholder expectations, and provide reliable financial information that aids decision-making processes. GoB encompasses various standards and guidelines that address different aspects of financial reporting. These principles aim to create a standardized methodology for recording, valuing, and disclosing financial transactions, assets, liabilities, revenues, and expenses. They ensure that financial statements depict a true and fair view of an entity's financial position, performance, and cash flows. The principle of "Einzelbewertung" emphasizes the individual valuation of assets and liabilities. Each item is assessed independently, reflecting its specific characteristics, economic conditions, and future prospects. This allows for accurate representation and avoids misleading aggregation of dissimilar items. Likewise, the principle of "Vorsicht" encourages companies to exercise caution when recognizing assets and income, taking into account potential risks or uncertainties that may affect their realization. Furthermore, GoB requires the use of historical cost, or in some cases, fair value, as the basis for asset and liability measurement. Historical cost reflects the actual transaction value, while fair value indicates the amount at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction. This approach ensures objective and comparable information across different entities and periods. Additionally, GoB highlights the importance of consistency and comparability in financial reporting. Companies are expected to apply accounting policies consistently over time, ensuring that financial statements are comparable between periods and with other entities. However, when changes in accounting policies become necessary, GoB requires disclosure of the nature, rationale, and impact of such changes to maintain transparency and facilitate analysis. Overall, Grundsätze ordnungsmäßiger Bilanzierung provides a robust framework for companies operating in German capital markets to adhere to standard accounting practices. By adopting these principles, businesses can enhance trust, facilitate efficient allocation of resources, and provide reliable financial information to investors, lenders, and other stakeholders.