Financial Reporting in accordance with the Swiss Code of Obligations

Accounting and financial reporting are regulated in Articles 957 ff. of the Swiss Code of Obligations.

These regulations are generally applicable to all companies in Switzerland (sole proprietorships, partnerships, and legal entities).

The law sets out a minimum structure for the balance sheet and income statement, as well as a minimum content for the notes to the financial statements.

Valuation should be cautious, without impeding the reliable assessment of the company's economic situation. Hidden reserves are still permissible.

Dr. Silvan Loser

Partner, Head of DPP Swiss Accounting

KPMG Switzerland

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Prof. Dr. Reto Eberle

Partner, Member of the Department of Professional Practice

KPMG Switzerland

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Financial reporting for larger & listed companies

The financial reporting for larger entities subject to an ordinary audit includes a cash flow statement, further disclosures in the notes to the financial statements, and a management report.

Listed companies, cooperatives with more than 2’000 members, and foundations subject to an ordinary audit are required to prepare additional stand-alone financial statements according to a recognized accounting standard (e.g., IFRS or Swiss GAAP FER). However, they are exempted if consolidated financial statements are prepared according to a recognized accounting standard.

Consolidated financial statements are required when one or more companies are controlled, and they must adhere to the principles of orderly financial reporting. Only consolidated financial statements of publicly traded companies, large cooperatives and foundations subject to an ordinary audit must be prepared in accordance with a recognized accounting standard.

KPMG's financial reporting expertise

Clarifying application-related issues
Implementing new financial reporting requirements
Understanding the options resulting from accounting policy choices
Preparing cash flow statements and management reports for larger entities
Preparing financial statements as per a recognized accounting standard for large cooperatives and foundations