In Germany, the Act to Modernize Accounting Law (Bilanzrechtsmodernisierungsgesetz - BilMoG) which was promulgated on 29 May, 2009 introduced some major changes to the German Commercial Code (Handelsgesetzbuch - HGB), such as removing the close connection to tax rules and controversial policy options currently available to companies for fmancial reporting. This chapter provides a critical examination of the recent reforms of the regulatory environment of accounting in Germany. Data for the study were collected through a document survey and interviews of a selected group of key individuals and an online focus group, who had an influence on and/or interest in accounting regulation in Germany. Findings of this study raise some interesting issues related to international fmancial reporting. We found that as a result of the reforms, German accounting shifted away from the Continental European model and closer to the Anglo-American model. We also found that the reforms were aimed mainly at addressing domestic concerns, and not necessarily at converging with International Financial Reporting Standards (IFRS).