According to the Swiss commercial law, a company must be subjected to a full audit if it qualifies as a public company or if it meets 2 of the 3 criteria in two consecutive business years: Swiss companies must have a statutory auditor who conducts an annual audit on the financial situation of each company or organization. Legal entities that control one or more companies with the obligation to prepare financial statements (groups) are not exempt from producing consolidated accounts. Very large companies that are listed on the stock exchange, cooperatives with at least 2,000 members and foundations required by law to undergo ordinary audits must prepare financial statements according to recognized standards. ![]() Large companies that are required by law to undergo ordinary audits have the obligation to prepare financial statements consisting of balance sheets, profit and loss accounts, notes, additional notes and cash flow statements. Ordinary audits are required only if certain criteria are met. Legal entities that are not required to undergo ordinary audits, partnerships and sole proprietorships with revenues of at least 500,000 CHF in the previous year have the obligation to prepare financial statements consisting of balance sheets, profit and loss accounts and notes. Audits can be conducted if they are approved by each shareholder otherwise audits are not required for companies with no more than 10 full-time employees. The Swiss Code of Obligations applies to all types of entities however specific reporting requirements differ depending on the size of the company.Ĭlubs and foundations that are not registered into the commercial register, foundations exempt from the obligation of appointing an auditor, partnerships and sole proprietorships with annual revenue of less than 500,000 CHF must maintain income and expenditure accounts and financial positions. Financial information required for Swiss business structures These documents must reflect the company’s assets and earnings, valued as accurately as possible. Publication requirementsĪn annual financial statement and its associated income statement, balance sheet and accounting notes must be prepared, according to the Swiss legislation. This requirement does not apply to the day-to-day bookkeeping. ![]() It is mandatory to maintain the balance sheet, the financial statement which includes loss and profit and an inventory in Swiss francs. Accounting reportsĬompanies registered into the Swiss Commercial Register must maintain accounting records and follow the general accounting principles as provided by the Swiss Code of Obligations. The association is comprised of more than 6,000 Swiss certified auditors, tax and fiduciary experts and around 850 companies. Accounting regulation bodies in SwitzerlandĮXPERTsuisse, the Swiss Expert Association for Audit, Tax and Fiduciary is the main accounting regulation body in Switzerland. If certain companies are listed on the SIX Swiss Exchange or are listed companies that have their domicile in the EU, they must prepare their consolidated financial statements in accordance with the IFRS standards. ![]() Industry-specific accounting standards are applicable to regulate accounting provisions for insurance companies, non-profit organizations and pension funds. ![]() The Swiss GAAP FER ( Fachempfehlungen zur Rechnungslegung) accounting standards are mostly used by small to medium-sized companies and national group firms, because they are usually seeking investments from Swiss investors. The SIX Swiss Exchange is governed by the IPO laws (Initial Public Offering) which require accounting standards that are based on the true and fair view principle, such as Swiss GAAP FER, US GAAP or IFRS (International Financial Reporting Standards). The Swiss Code of Obligation does not include any specific provisions regarding the accounting standards used to prepare consolidated financial statements. The federal, cantonal and communal tax on income is assessed each year, based on the income obtained in the current year. The tax year in Switzerland is generally the calendar year, unless a company uses a different financial year.
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