Accounting

The general accounting regulations in Switzerland are brief and to the point. The accounts required for the type and scope of business must be kept in an orderly manner and allow identification of business assets and of receivables and payables associated with business operations as well as operating results (profit or loss) in each business year. The law requires that the income statement (profit and loss account) and the balance sheet be drawn up annually according to generally accepted accounting principles and that they be complete, clear and easily understood. This means that the accounting system can be based on any internationally accepted standards (such as US-GAAP, IAS or FER).

Corporations (AGs) must meet detailed minimum requirements concerning the structure of financial statements in order to increase transparency. The annual financial statements must include, as a minimum, a balance sheet and an income statement with prior-year comparisons and explanatory notes. The annual financial statements of subsidiaries, including in particular those of listed companies, must be consolidated in a single set of group financial statements if two of the following measures are reached in two successive fiscal years:

• Total assets of CHF10million
• Annual sales of CHF20million
• An average headcount over the year of 200 employees