DRS 22
Active
Group equity
Konzerneigenkapital
1
Scope – Part of a Coordinated 2016 Release
One of three standards announced together
DRS 22, announced in the same 23 February 2016 Bundesanzeiger notice as DRS 23 and DRS 24, elaborates the presentation of consolidated group equity – supplementing §297(1) HGB's own Eigenkapitalspiegel (statement of changes in equity) requirement, established in the earlier HGB poster series, and directly building on the NCI (non-controlling interest) mechanics established under §307 HGB in the Vollkonsolidierung poster.
2
The Eigenkapitalspiegel – Movement, Not Just a Snapshot
What the statement actually shows
DRS 22 requires the statement to show the FULL MOVEMENT of each group equity component across the period – opening balance, net income attributable, other comprehensive-income-type items (currency translation differences, per DRS 25), dividends, capital transactions – not merely opening and closing balances alone, giving readers a genuine bridge between the two balance sheet dates.
Currency translation differences, specifically
DRS 22 requires the accumulated currency translation adjustment arising from consolidating foreign subsidiaries (per DRS 25's own modified closing rate method) to be shown as its OWN distinct equity component – genuinely useful given how this item can swing significantly year to year purely from exchange rate movements, unrelated to the group's own operating performance.
3
Non-Controlling Interests, Elaborated
Building on §307's own "losses even into deficit" rule
Recall from the earlier HGB Vollkonsolidierung poster: §307 requires NCI losses to be attributed even into a deficit position, converging with IFRS 10. DRS 22 elaborates the PRESENTATION mechanics for this – showing NCI as its own separate equity component, with its own movement bridge, and specific guidance on presenting a genuinely negative NCI balance where cumulative losses have exceeded the non-controlling shareholders' own original contribution.
4
Worked Example – NCI Moving Into a Deficit Position
Presenting a negative non-controlling interest balance
A subsidiary, 70% owned by the parent and 30% owned by outside investors, has an opening NCI balance of €200,000. The subsidiary incurs a €900,000 loss for the year, with the NCI's own 30% share being €270,000.
Under §307 (attributing losses even into deficit) and DRS 22's own presentation guidance, the NCI balance moves from €200,000 to €200,000 − €270,000 = −€70,000 – presented as its OWN distinct, clearly-labelled negative equity component in the Eigenkapitalspiegel, rather than being floored at zero or absorbed elsewhere in the group's own equity.
5
Relationship to IFRS (IAS 1)
Broadly converged presentation, with the same underlying goodwill-driven divergence
DRS 22's statement of changes in equity closely parallels IAS 1's own requirement. The main lingering divergence isn't in DRS 22 itself, but flows through from earlier in this series: HGB's own mandatory goodwill amortisation (versus IFRS's impairment-only approach) means the RETAINED EARNINGS component this statement tracks will genuinely differ in trajectory between the two frameworks, even where the presentation FORMAT itself is very similar.