Project description
The purpose of the project was to develop rules for the accounting treatment and disclosure of government grants and other governmental contributions under Swiss GAAP FER. In a first phase a review was conducted to gain insights into the relevance of the topic and to determine whether the current standards provide adequate guidance. This process also included a survey of the general public. The review showed that the current standards do not give sufficient orientation and indicated a need for action. In its 74th session the Commission decided unanimously to initiate a project aimed at the development of accounting rules pertaining government grants and other governmental contributions. A working group then developed prescriptions in the form of a new, independent Recommendation. This draft was approved for consultation by the Commission at the 77th meeting. The consultation took place from March 15, 2021 to June 30, 2021. The numerous submissions were evaluated and the draft was revised. The final standard was approved by the Commission at the 80th meeting as “Swiss GAAP FER 28 – Government Grants”. The new standard is to be applied for fiscal years beginning on January 1, 2024. Earlier application is permitted.
Reasons for the revision
Subsidies, aids and grants are an essential part of the public budget and pertain numerous companies and non-profit organisations applying Swiss GAAP FER. The accounting standard Swiss GAAP FER covers the accounting treatment and disclosure of government grants and other governmental contributions in Swiss GAAP FER 21 and Swiss GAAP FER 24. Compared to other accounting standards, the provisions of Swiss GAAP FER are less comprehensive. The review lead to the conclusion that the accounting treatment and disclosure have been applied differently. Moreover, users indicated ambiguities in the application of Swiss GAAP FER concerning government grants and other governmental contributions.
Composition of the working group
The working group took various stakeholder groups into account and was broadly based. The members represented users of companies and non-profit organisations, the public finance administration and auditors.
The working group was chaired by Michael Annen, who is also a member of the executive committee of the FER Foundation.
Please direct any questions to Michael Annen, member of the executive committee / project manager “Government Grants”, e-mail: fachsekretaer@fer.ch.
Project conclusion
The revised draft was approved at the commission meeting on 30 November 2021. The standard will be applicable as Swiss GAAP FER 28 on 1 January 2024.
Consultation
The consultation was open from March 15th until June 30th 2021. Further submissions will not be considered.
The consultation draft and the consultation questionnaire are available on the German and French website of Swiss GAAP FER.
Questions & feedback
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