Description

Swiss GAAP FER 1 “Basics” regulates the procedure and purpose of accounting and reporting and principles according to Swiss GAAP FER. The principles include:

• Promotion of meaningful financial reporting
• True & fair view as a basis
• Principle-based recommendations with a generally valid framework
• Granting of options; disclosure of the applied methods
• Establishing meaningful assumptions for a possible transition to international standards.

As a matter of principle, the whole body of rules and regulations, the Swiss GAAP FER, is to be complied with. Smaller organisations which do not exceed two of the following criteria in two consecutive years may apply the core FER:

1. balance sheet total of CHF 10 million
2. annual net sales from goods and services of CHF 20 million
3. 50 full-time employees on average per year.

The core FER includes the following Swiss GAAP FER:

• Framework (Swiss GAAP FER Framework)
• Basics (Swiss GAAP FER 1)
• Valuation (Swiss GAAP FER 2)
• Presentation and format (Swiss GAAP FER 3)
• Cash flow statement (Swiss GAAP FER 4)
• Off-balance-sheet transactions (Swiss GAAP FER 5)
• Notes (Swiss GAAP FER 6).

The compliance with the core FER results in a true & fair view of the financial position, the cash flows and the operational results. Not all the requirements regarding assessment and disclosure need to be complied with, as they are required for an annual closure of the accounts according to Swiss GAAP FER.

Groups need to additionally apply Swiss GAAP FER 30. Listed companies also have to apply Swiss GAAP FER 31. For listed companies, the provisions in this recommendation take precedence over those set out in the framework and in the other recommendations. The application of core FER only is not permissible for listed companies.