The financial statements in accordance with Swiss GAAP FER are based on the True & Fair View Principles and, thus, differ from the financial statements prepared in accordance with tax rules. Tax calculations are, however, based on the financial statements prepared in accordance with tax rules. The main addressees of the annual financial statements setup in accordance with Swiss GAAP FER are the management of the company, actual and potential investors (shareholders and creditors, especially banks), donators, insurers and other interested parties. They help to increase transparency, create trust, reduce financing costs and help to form a reliable basis for entrepreneurial decisions. Swiss GAAP FER encompasses the generally accepted accounting rules in Switzerland. the medium-sized enterprises Swiss GAAP FER ("Fachkommission für Empfehlungen zur Rechnungslegung“) is required or recommended for use. For the majority of Swiss companies, however, i.e. Internationally operating major corporations quoted at the Swiss Stock Exchange SWX need to keep their books according to US-GAAP or IFRS. they can do without statutory auditors if they have less than 10 FTE’s. Furthermore, small and medium-sized companies have the option of opting-out, i.e. and average FTE’s in excess of 50 during an accounting year), a regular annual statutory audit is required, while small and medium-sized companies will only need a limited review. with assets in excess of CHF 10 m., turnover of CHF 20 m. For publicly traded and economically important companies (i.e.
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Statutory auditors and consequently a regular annual statutory audit depends only from economic importance of a company. Average number of 200 FTE’s during the accounting year.If two of the following parameters are met in two consecutive accounting years, the annual financial statements of companies of the same group need to be integrated into a consolidated annual financial statement: The annual financial statements must at least consist of the balance sheet, the profit and loss statement with comparative figures of the previous year and explanatory notes.
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US-GAAP, IFRS, Swiss GAAP FER).įor joint-stocks companies, more detailed minimum requirements for the structuring of the financial statements exist in order to help increase transparency. As a result, accounts can be kept in accordance with all established international accounting rules (e.g. Laws require that profits and losses and balance sheets are reported annually in a complete, well-defined and well-structured manner in accordance with the generally accepted accounting principles. They only stipulate that those accounts need to be properly kept and depending on the type and size of the business, then ascertain the financial situation and the liabilities and receivables associated with the business for each accounting year. The Swiss general accounting rules are succinct and flexible.
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Certain industries are exempt from registration if gross turnover is less than CHF 100,000. Registration in the trade register is required for trading, manufacturing or other commercial business activities. For a Swiss company, accountancy becomes compulsory with its registration in the trade register.