Accounting and financial reporting regulations apply to all companies with revenue in excess of CHF500,000 regardless of their legal form.
Accounting rules as per the Code of Obligations.
The new legal provisions on financial reporting as specified in Art. 957-963b OR (“Obligationenrecht” or Swiss Code of Obligations) have been in effect since 2015. These now allow accounting and financial reporting to be performed in a company’s functional currency. This act prescribes a minimum level of detail for the balance sheets and income statements of all entities concerned as well as an expansion of the minimum information content of the notes. Valuations must be made prudently, without obstructing a reliable assessment of the financial situation. Hidden reserves continue to be acceptable. Financial reporting for larger entities subject to an ordinary audit also includes a cash flow statement, supplementary disclosures in the notes and a management report. Recognized financial reporting standards have been included in the law for the first time. These comprise true and fair view standards such as Swiss GAAP FER, IFRS for small and medium-sized entities, IFRS, US GAAP and IPSAS.
Listed companies, cooperatives with more than 2000 members and foundations subject to an ordinary audit must also prepare their financial statements according to one of these standards. Consolidated financial statements must be prepared if a company controls one or more entities. These are subject to the principles of proper financial reporting. Only the consolidated financial statements of public limited companies, large cooperatives and foundations subject to an ordinary audit must be prepared in accordance with a true and fair view standard.
The illustrative financial statements represent a possible financial reporting for an Industry AG, a Holding AG and a Non-Profit Foundation.