The Anhang

The German notes (Anhang): mandatory disclosures under §§ 284–288 HGB

The notes to the financial statements — the Anhang — turn a German balance sheet and income statement into a complete, readable Jahresabschluss. This page explains what the Anhang must contain (§§ 284–288 HGB), how the required disclosures scale down for smaller companies, and when a micro entity may leave the notes out altogether.

What the Anhang is and why it exists

For a corporation, the annual statements are not just the Bilanz and GuV. Section 264 Abs. 1 HGB makes the Anhang a mandatory third component that forms a single unit with them. Its job is to explain the figures, disclose the accounting policies used, and provide the breakdowns that the standardised face of the statements deliberately leaves out.

Because the Bilanz and GuV follow a fixed, compressed format, much of the genuinely useful information — valuation methods, maturities, contingent liabilities, related-party dealings — is found only in the notes. The Anhang is where a reader learns how the numbers were arrived at.

What the notes cover

Accounting and valuation policies (§ 284)

The methods applied to each class of asset and liability — depreciation methods and useful lives, inventory valuation, currency translation — plus the fixed-asset movement schedule (Anlagenspiegel).

Balance sheet disclosures (§ 285)

Breakdowns that do not fit the face: maturities of liabilities, amounts secured by liens, contingent liabilities and other financial commitments (§ 285 Nr. 3/3a).

Income statement disclosures (§ 285)

Items such as the auditor's fee (large entities only) and, for cost-of-sales filers, the total personnel and material expense.

Other mandatory disclosures (§ 285)

Governing bodies and their remuneration, average employee numbers, shareholdings in other entities, and post-balance-sheet events, each subject to size-based relief.

The two building blocks: § 284 and § 285

The core of the Anhang sits in two paragraphs. Section 284 governs disclosures that explain the balance sheet and income statement themselves — above all the accounting policies and the Anlagenspiegel showing how each fixed-asset class moved during the year. Section 285 is a long catalogue of specific additional disclosures, numbered item by item (Nr. 1, Nr. 2, and so on).

Sections 286 to 288 then modify that catalogue: § 286 allows certain disclosures to be omitted where they would cause serious harm, and § 288 lists which items small and medium companies are relieved from. Reading the four paragraphs together tells you exactly what a given company owes.

Disclosure scales with size

The Anhang is where the HGB's proportionality is most visible. A large corporation discloses the full § 285 catalogue; a medium company is relieved from some items under § 288 Abs. 2; and a small company is relieved from a much longer list under § 288 Abs. 1, so its notes are short.

A small company, for example, need not disclose the auditor's fee or most related-party detail, and it publishes only a reduced Anhang. The classification of the company therefore drives not just the length of the notes but which specific paragraphs apply.

Micro entities may omit the Anhang

A micro entity (Kleinstkapitalgesellschaft, § 267a) has a special privilege: under § 264 Abs. 1 Satz 5 it may dispense with the Anhang entirely, provided it shows a small number of prescribed figures beneath the balance sheet instead — for example contingent liabilities, advances to managing directors and, where relevant, own shares.

This is a genuine simplification, not a loophole: it recognises that a very small company's notes would add little. A micro GmbH can therefore file a short balance sheet with a few footnotes and no separate notes document, and it may even deposit (hinterlegen) rather than publish it under § 326 Abs. 2.

Typical Anhang contents in practice

  • A statement of the accounting and valuation methods applied (§ 284 Abs. 2).
  • The Anlagenspiegel, the movement schedule for each class of fixed asset (§ 284 Abs. 3).
  • Remaining maturities of liabilities, and amounts secured by liens or similar rights.
  • Other financial commitments not on the balance sheet, such as leasing and rental obligations (§ 285 Nr. 3a).
  • The average number of employees during the year, and the members of management and any supervisory board.
  • The proposed or resolved appropriation of the result, and material events after the balance sheet date (§ 285 Nr. 33).

Frequently asked questions

What is the Anhang?

The Anhang is the set of notes to the German financial statements. For corporations it is a mandatory component alongside the Bilanz and GuV (§ 264 HGB) and contains the accounting policies and disclosures required by §§ 284–288.

Do small companies have to prepare notes?

Yes, but a reduced version. Section 288 Abs. 1 relieves small companies from many § 285 disclosures, and they publish only a shortened Anhang. Micro entities can omit the notes entirely under § 264 Abs. 1 Satz 5.

Can a micro entity skip the Anhang?

Yes. A Kleinstkapitalgesellschaft (§ 267a) may leave out the Anhang if it presents a few prescribed figures beneath the balance sheet, such as contingent liabilities and advances to directors (§ 264 Abs. 1 Satz 5).

What is the Anlagenspiegel?

The Anlagenspiegel is the fixed-asset movement schedule required by § 284 Abs. 3: it shows opening cost, additions, disposals, transfers, depreciation and closing carrying amount for each class of fixed asset. It forms part of the notes.

What is the difference between § 284 and § 285?

Section 284 covers disclosures that explain the balance sheet and income statement, chiefly the accounting policies and the Anlagenspiegel. Section 285 is a numbered catalogue of specific additional disclosures, from liability maturities to management remuneration.