IFRS US GAAP Swiss GAAP FER Digest of resemblingities and separations 2007/2008 Edition 1 IFRS – US GAAP – Swiss GAAP FER Digest of resemblingities and separations 2007/2008 Edition This PricewaterhouseCoopers promulgation is coercion those who wish to produce a expansive intellect of the guide resemblingities and separations among IFRS, US GAAP and Swiss GAAP FER. No digest promulgation can do uprightness to the sundry separations of detail that be among IFRS, US GAAP and Swiss GAAP FER. Equal if the guide is resembling, there can be separations in the elaboscold collision, which could feel a resembleative contact on the financial announcements.
It wants to be stressed that this monograph deals with the deep separations barely. Sundry prefer pages would be wanted to be prefer liberal, exclude that was referable imputable imputable imputable our extrinsic with this promulgation. This promulgation focuses on the mass resemblingities and separations most commbarely settle in act. When explanationing the idiosyncratic accounting frameworks, readers should ask-advice-of liberal the conducive accounting gauges and, where conducive, their unconcealed adjudication. Listed companies should too thrive conducive securities regulations.
IFRS and US GAAP are globally referableorious accounting gauges coercion which a expansive polish of speculative elucidation, interpretations and reading is emolumentable. Swiss GAAP FER focuses on accounting coercion smliberal and medium bulkd organisations and collections domiciled in Switzerland; if there are questions that are referable imputable imputable imputable answered by a relative gauge, the unconcealed motive of a gentleman and untarnished sight should be applied. This digest is domiciled on IFRS and US GAAP harvests up to August 2007 and on Swiss GAAP FER as conducive from January 1, 2007.
It does referable imputable imputable imputable hide Swiss GAAP FER 14 Dim financial announcements of security companies, Swiss GAAP FER 21 Accounting coercion revolveate, political non-emolument organisations and Swiss GAAP FER 26 Accounting of pension intents. We reliance you liberalure confront this promulgation conducive in helpful you authenticate the guide separations among IFRS, US GAAP and Swiss GAAP FER. SUBJECT Accounting framework Literal claim or valuation IFRS US GAAP Swiss GAAP FER Unconcealedly authentications literal claim, exclude insensible consequence, resources, settle and equipment (PPE) and cannonade resources may be revalued to untarnished prize.
Derivatives, genuine other financial utensils and biological consequence are revalued to untarnished prize. Liberal retrospective collision of liberal IFRS effectual at the fameing epoch coercion an association’s original IFRS financial announcements, with some libertyal exemptions and scant mandatory crusty. Pacifications of emolument or damage in deference of the expanded conclusion reputed inferior earlier GAAP, of equity at the purpose of that conclusion and of equity at the set-extinguished of the primeval conclusion imparted in comparatives must be interjacent in an association’s original IFRS financial announcements.
No revaluations exclude coercion genuine types of financial utensil. Basically, literal claim treaty applies. Nevertheless, coercion incongruous poise shuffle standings Swiss GAAP FER defines deviations from that treaty (untarnished prize) or liberalows choices among brace libertys. Original-season gathering claims a admit of the earlier year poise shuffle in agreeing with Swiss GAAP FER barely. Original-season gathering of accounting framework Original-season gathering of US GAAP claims retrospective collision. There is no condition to imsepareprove pacifications of equity or emolument or damage on original-season gathering of US GAAP.
Financial announcements Factors of financial announcements Brace years’ poise shuffles, wholeowance announcements, specie issue announcements, transmutes in equity and accounting policies and referable imputable imputablees. Resembling to IFRS, exclude three years claimd coercion SEC registrants coercion liberal announcements exclude poise shuffle. Favoring accommodations in genuine situation coercion coercioneign privy issuers that may prproffer exemption from the three-year condition. Entities may imsepareprove either a classified or non-classified poise shuffle. Items on the aspect of the poise shuffle are unconcealedly imparted in decreasing ordain of liquidity.
SEC registrants should thrive SEC regulations. Resembling to IFRS. Poise shuffle Does referable imputable imputable imputable enjoin a detail coercionmat. A liquidity admit of consequence and liabilities is authenticationd, instead of a impart/ non-imsepareprove admit, barely when a liquidity admit provides prefer conducive and genuine instruction. Genuine restriction items are imparted on the aspect of the poise shuffle. Does referable imputable imputable imputable enjoin a detail coercionmat. A impart/nonimsepareprove admit of consequence and liabilities is authenticationd spontaneous a liquidity admit provides prefer conducive and genuine instruction.
Genuine restriction items are imparted on the aspect of the poise shuffle. A restriction comstanding is claimd. Incongruous items feel to be referableorious topically on the aspect of the poise shuffle or among the referable imputable imputablees. Wholeowance announcement Imsepareprove as either a sole-step or multiple-step coercionmat. Expenditures are imparted by wholeot. SEC registrants should thrive SEC regulations. A restriction comstanding is claimd, either by kind or by wholeot. Incongruous items feel to be referableorious topically on the aspect of the wholeowance announcement or among the referable imputable imputablees. 3 SUBJECT Excludeional (significant) items
IFRS Does referable imputable imputable imputable authentication the regulate exclude claims disjoined divestment of items that are of such bulk, impingement or kind that disjoined divestment is compulsory to interpret the act of the association. Prohibited. US GAAP Resembling to IFRS, exclude idiosyncraticly symbolical items are imparted on the aspect of the wholeowance announcement and referableorious in the referable imputable imputablees. Swiss GAAP FER Does referable imputable imputable imputable authentication the regulate excludeional, exclude symbolical items are to be referableorious topically. Preposterous items Defined as association twain precious and strange, and are expensive. Introdden goodallure is imparted as an preposterous item.
Sum liberal wholeowance and accumulated other liberal wholeowance are referableorious, imparted either as a disjoined original announcement or thoroughly with the wholeowance announcement or with the announcement of transmutes in consummateholders’ equity. Resembling to IFRS exclude that US GAAP does referable imputable imputable imputable feel a SoRIE, and SEC rules enjoin the announcement to be imparted either as a original announcement or in the referable imputable imputablees. Defined as association extremely expensive in the comstanding of the sordidplace operations and as association referable imputable imputable imputable predictable. Referable imputable imputable imputable addressed. Announcement of recognised wholeowance and price (SoRIE)/ Other liberal wholeowance and announcement of accumulated other liberal wholeowance
A SoRIE can be imparted as a original announcement, in which happenrence a announcement of transmutes in keep-apartholders’ equity is referable imputable imputable imputable imparted. Choicely, it may be referableorious topically among the original announcement of transmutes in keep-apartholders’ equity. Announcement shows principal offices with confessers, the transmute-of-place in accumulated emolument and a pacification of liberal other factors of equity. The announcement is imparted as a original announcement exclude when a SoRIE is imparted. In this happenrence, barely divestment in the referable imputable imputablees applies. Gauge headings exclude scant guide on interruption. Authentication plain or inplain regularity.
Announcement of transmutes in keep-apartholders’ (stockholders’) equity Resembling to IFRS exclude SoRIE choice. Genuine restriction divestments of factors of equity and transmutes in equity. Specie issue announcements – coercionmat and regularity Resembling headings to IFRS, exclude prefer favoring guide coercion items interjacent in each state. Plain or inplain regularity authenticationd. Resembling to IFRS, exclude that bank counteractdrafts are exclusive. Resembling to IFRS, exclude with prefer guide respecting interruption and with expandments of nonspecie offices. Specie conceives specie equivalents with maturities of three months or near from the poise shuffle epoch and may conceive bank counteractdrafts.
Resembling to IFRS. Specie issue announcements – topicalation of specie and specie equivalents Specie conceives specie equivalents with maturities of three months or near from the epoch of wages and may conceive bank counteractdrafts. No exemptions. Specie issue announcements – exemptions Transmutes in accounting treatment Scant exemptions coercion genuine cannonade entities and defined favor intents. Resembling to IFRS. Comparatives and earlier year are restated resisting hole retained hues, spontaneous favoringally exempted. Earlier year financial announcements feel to be restated.
The referable imputable imputablees want to divulge why the accounting motive has transitional, the kind of the transmute and its financial contact. Earlier year financial announcements feel to be restated. Explanation and quantitative divestment of the consequence of hallucinations among the referable imputable imputablees. Correction of hallucinations Comparatives are restated and, if the hallucination happenred antecedently the primeval earlier conclusion imparted, the hole poises of consequence, liabilities and equity coercion the primeval earlier conclusion imparted are restated. Resembling to IFRS. 4 SUBJECT Transmutes in accounting estimates IFRS Reputed in wholeowance announcement in the imsepareprove conclusion and coming, if conducive.
US GAAP Resembling to IFRS. Swiss GAAP FER Transmutes in accounting estimates are to be reputed in the wholeowance announcement in the imsepareprove conclusion and coming, if conducive, and to be referableorious among the referable imputable imputablees. Dim financial announcements Coalition mould Domiciled on guide, which is the strength to modescold the financial and unobstructed policies. Guide is presumed to be when doer confesss, plainly or alienly through subsidiaries, prefer than undivided half of an association’s voting strength. Guide too bes when the doer confesss half or near of the voting strength exclude has juridical or curtailual hues to guide, or de facto guide (expensive situation).
The beence of impartly exercisable virtual voting hues is too enthralled into importance. Dim where the association of the wholeiance indicates guide. A bipolar coalition mould is authenticationd, which distinguishes among a capricious concern mould and a voting concern mould. The capricious concern mould is discussed beneath. Inferior the voting concern mould, guide can be plain or inplain and may be with near than 50% occupation. ‘Effectual guide’, which is a resembling referable imputable imputableion to de facto guide inferior IFRS, is very expensively if steadyly industrious in act. Guide rinciple applies. Guide is presumed to be when doer confesss, plainly or alienly through subsidiaries, prefer than undivided half of an association’s voting strength. Guide too bes when the doer confesss half or near of the voting strength exclude has juridical or curtailual hues to guide (e. g. keep-apartholder commitment curtail, eldership in the supervisory association/treatment association). Special purposes association (SPE) Capricious concern entities (VIEs) are dim when the association has a capricious concern that liberalure retain the eldership of the expected damagees, assent-to a eldership of the expected restorations, or twain.
A voting concern association, in which the association holds a guideling financial concern, is dim. If a SPE coalesces the topicalation of a suitable SPE (QSPE), the transferor does referable imputable imputable imputable consoliepoch the QSPE. Organisations with a be-unlikeing calling disstanding are to be revolveed in the design of coalition. This too applies, as a stuff of motive, coercion SPEs. Topicalation of wholey Domiciled on symbolical rule, which is the strength to feel-a-keep-adivorce in the financial and unobstructed treatment decisions; presumed if 20% or main concern. Equity regularity is authenticationd. Keep-adivorce of post-tribute effects is shown.
Constructive instruction on wholeys’ consequence, liabilities, fruits and emolument/damage is claimd. Resembling to IFRS, although the regulate “equity cannonade” is authenticationd instead of “associate”. Approximate to IFRS. Voting hues ;= 20% and ; 50% and guide canreferable imputable be exercised. Admit of wholey effects Divestments encircling wholeys Resembling to IFRS. Resembling to IFRS. Approximate to IFRS. Referable imputable imputable imputable addressed. Nevertheless, symbolical poise shuffle instruction of non-dim organisations has to be referableorious if the prize of those cannonades exceeds 20% of the collection’s equity.
If wholeyd organisations fame goodallure such goodallure liberalure want to be referableorious among the referable imputable imputablees. 5 SUBJECT Wholey’s accounting policies IFRS Structures are made coercion coalition purposes to the wholey’s policies to harmonize to those of the investor. Twain proportional coalition and equity regularity enjointed. Dim where association of wholeiance indicates guide (SIC-12 mould). Association’s confess keep-aparts held by an employee keep-adivorce reliance are accounted coercion as garner keep-aparts. US GAAP No structure to accounting policies is claimd if the wholey thrives an grateful choice US GAAP composition.
Equity regularity claimd exclude in favoring situation. Resembling to IFRS exclude where favoring guide applies coercion Employee Consummate Occupation Intents (ESOPs) in SOP 93-6. Swiss GAAP FER Resembling to IFRS. Admit of articulatisimply guideled entities (articulation ventures) Employee keep-adivorce (stock) reliances Resembling to IFRS. Referable imputable imputable imputable addressed. Calling concerts Types: wagess or mergers Liberal calling concerts are wagess, thus the escheatment regularity is the barely regularity of accounting that is liberalowed. Consequence, liabilities and contribution liabilities of artificial association are untarnished prized.
If guide is obtained in a topical wages of a corroborative, the liberal untarnished prize of consequence, liabilities and contribution liabilities, including wholeoty imputable to the lad (non-controlling) concern, is chronicled on the dim poise shuffle. Goodallure is recognised as the residual among the importance compensated and the percentage of the untarnished prize of the calling artificial. Liabilities coercion restructuring activities are recognised barely when acquiree has an association impost at wages epoch. Liabilities coercion coming damagees or other claims expected to be incurred as a effect of the calling concert canreferable imputable be recognised.
Escheatment regularity – contribution importance Interjacent in claim of concert at wages epoch if structure is mitigated and can be measured reliably. Stated at lad’s keep-adivorce of the untarnished prize of artificial identifiable consequence, liabilities and contribution liabilities. Resembling to IFRS. Referable imputable imputable imputable addressed. Escheatment regularity – untarnished prizes on wages There are favoring separations to IFRS. Contribution liabilities of the acquiree are recognised if, by the purpose of the liberalocation conclusion: • theirfairvaluecanbe secure, or • theyareprobableandcan be reasonably estimated.
Favoring rules be coercion artificial in-rule learning and harvest (generally priced). Some restructuring liabilities of simply to the artificial association may be recognised if favoring criteria encircling restructuring intents are expiration. Approximate to IFRS. Entangle consequence enthralled counteract in an wages are to be prized at untarnished prizes. Goodallure is recognised as the redundancy of wages claim counteract the newly prized entangle consequence and to be principalised as an insensible asset. Contribution liabilities and restructuring liabilities referable imputable imputable imputable favoringally addressed. Unconcealedly, referable imputable imputable imputable recognised until uncertainty is firm and the aggregate is palpable.
Stated at lad’s keep-adivorce of pre-wages carrying prize of entangle consequence. Referable imputable imputable imputable addressed. Escheatment regularity – lad concerns at wages Referable imputable imputable imputable addressed, exclude comstanding would want to be referableorious as wholeot of the coalition motives. 6 SUBJECT Escheatment regularity – insensible consequence with inshapely conducive lives and goodallure IFRS Principalised exclude referable imputable imputable imputable amortised. Goodallure and informal-lived insensible consequence are experimented coercion enervation at smallest per-annum at either the specie-generating individual (CGU) intente or collections of CGUs, as conducive. US GAAP Resembling to IFRS, although the intente of enervation experimenting and the enervation experiment itself are incongruous.
Swiss GAAP FER Beneficence: Either principalise and amortise counteract conducive vitality (normally five years; divulge the goodallure disjoined in the poise shuffle or among the referable imputable imputablees) or liberalocate plainly to retained hues at wages epoch barely (in this happenrence disjoined divestment among the announcement of transmutes in equity compulsory and the consequence of a speculative principalisation as courteous as of any enervation and sordidplace amortisation feel to be imparted among the referable imputable imputablees). Coercion insensible consequence with a conducive vitality that canreferable imputable be perspicuously secure an amortisation conclusion of five years is applied, in justified happenrences a conclusion of twenty years at the most.
Escheatment regularity – introdden goodallure The identification and mass of acquiree’s identifiable consequence, liabilities and contribution liabilities are reassessed. Any surplus retaining succeeding reassessment is recognised in wholeowance announcement coercionthwith. Referable imputable imputable imputable favoringally addressed. Entities accepted and suitably explanation either escheatment or pooling-of-concern accounting coercion liberal such offices. Any retaining surplus succeeding reassessment is authenticationd to weaken proportionately the untarnished prizes assigned to nonimsepareprove consequence (with genuine crusty). Any surplus is recognised in the wholeowance announcement coercionthwith as an preposterous produce.
Generally chronicled at ancestor claim; the authentication of ancestor claim or untarnished prize depends on a number of criteria. Referable imputable imputable imputable addressed, exclude comstanding would want to be referableorious as wholeot of the coalition motives. Calling concerts involving entities inferior sordid guide Referable imputable imputable imputable addressed. Fruits confession Fruits confession Domiciled on incongruous criteria, which claim the confession of fruits when risks and rewards and guide feel been infectious and the fruits can be measured reliably. Resembling to IFRS in motive, although there is capacious elaboscold guide coercion favoring types of offices that may guide to separations in act.
Approximate to IFRS. Wholeowance is the inissue of favors in the fameing conclusion through growth of consequence and/or inferior of liabilities that growth keep-apartholders’ equity extraneously receiving an cannonade from the keep-apartholders. Wholeowance is barely recognised if the akin transmutes of consequence and/or liabilities may be reliably secure. Referable imputable imputable imputable addressed. Multiple-element preparations Fruits confession criteria are applied to each topically identifiable factor of a office to ruminate the association of the office – e. g. to keep-adivorce undivided office into the sale of consequence and to the succeeding servicing of those consequence.
No prefer elaboscold guide bes. Preparations with multiple deliverables are keep-apartd into disjoined living-souls of accounting if deliverables in preparation coalesce positive criteria extinguishedlined in EITF 00-21. Favoring guide bes coercion software vendors with multiple-element fruits preparations. 7 SUBJECT Fabricateion curtails IFRS Accounted coercion using percentage-of-completion (PoC) regularity. Completed curtail regularity is prohibited. US GAAP Resembling to IFRS; nevertheless, completed curtail regularity is enjointed in expensive situation. Swiss GAAP FER Accounted coercion using the PoC regularity.
Completed curtail regularity claimd if preprovisions coercion PoC regularity are referable imputable imputable imputable expiration. Price confession Concern price Recognised on an accruals account using the effectual concern regularity. Concern incurred on borrowings to fabricate an asset counteract a continueing conclusion of season is principalised as wholeot of the claim of the asset. Employee favors: pension claims – defined favor intents Projected individual confidence regularity is authenticationd to state favor compulsion and intent consequence are chronicled at untarnished prize. Actuarial produces and damagees can be wide.
If actuarial produces and damagees are recognised coercionthwith, they can be recognised beyond the wholeowance announcement. Resembling to IFRS. Referable imputable imputable imputable addressed, in act resembling to IFRS. Concern incurred on borrowings to fabricate substantial agricultural consequence and inventories including long-regulate curtails may be principalised. Swiss GAAP FER constitute authentication of the financial announcements of the relative pension consummate, if any. An organisation has to assess per-annum whether an ill-conditioned favor or ill-conditioned compulsions from a pension intent (and from a maintenance consummate) bes.
Swiss GAAP FER choicely liberalow the collision of an interunconcealed accounting gauge (e. g. IFRS, US GAAP) in imparting the ill-conditioned contact of pension compulsions; nevertheless, entities explanationing this liberty barely authentication relative prescriptions coercion pension compulsions. Referable imputable imputable imputable addressed. Resembling to IFRS with some separations in the elaboscold collision. Resembling to IFRS exclude with incongruous areas of separation in elaboscold collision. Actuarial produces and damagees canreferable imputable be wide and are recognised in accumulated other liberal wholeowance with succeeding amortisation to the wholeowance announcement.
Employee keep-apart-domiciled acquittal offices Price coercion services escheatmentd is recognised domiciled on the untarnished prize of the equity awarded or the impost incurred. Regulateination favors arising from redundancies are accounted coercion resemblingly to restructuring provisions. Regulateination restoration schemes are accounted coercion domiciled on actuarial imsepareprove prize of favors. Resembling mould to IFRS, although sundry areas of separation be in collision. Regulateination favors Four types of regulateination favors with three incongruous timing regularitys coercion confession.
Effect restoration schemes are accounted coercion as pension intents; akin impost is fitted as either a vested favor compulsion or according to the actuarial imsepareprove prize of favors. Regulateination favors are accounted coercion as provisions and do referable imputable imputable imputable fliberal among the design of Swiss GAAP FER 16 Pension favor compulsions. 8 SUBJECT Consequence Artificial insensible consequence IFRS US GAAP Swiss GAAP FER Principalised if confession criteria are expiration; amortised counteract conducive vitality. Insensibles assigned an inshapely conducive vitality are referable imputable imputable imputable amortised exclude reviewed at smallest per-annum coercion enervation.
Revaluations are enjointed in expensive situation. Resembling to IFRS, exclude revaluations are referable imputable imputable imputable enjointed. Principalised if they agree measurable economic favors counteract incongruous years. Amortisation counteract conducive vitality. If the conducive vitality canreferable imputable be perspicuously secure an amortisation conclusion of five years is applied, in justified happenrences undivided of twenty years at the most. Coercion insensible consequence akin to idiosyncratics the conducive vitality may referable imputable imputable imputable exceed five years. Principalisation liberalowed if confession criteria are expiration. Swiss GAAP FER too communication prices which canreferable imputable be principalised (e. g. asic and applied learning, amid generated beneficence). Approximate to IFRS. Amid generated insensible consequence Learning claims are priced as incurred. Harvest claims are principalised and amortised barely when favoring criteria are expiration. Unlike IFRS, twain learning and harvest claims are priced as incurred, with the excludeion of some software and website harvest claims that are principalised. Literal claim is authenticationd; revaluations are referable imputable imputable imputable enjointed. Resources, settle and equipment Literal claim or revalued aggregates are authenticationd. Regular valuations of full classes of consequence are claimd when revaluation liberty is unconnectedd.
Non-imsepareprove consequence are classified as held coercion sale if their carrying aggregate liberalure be recovered primarily through a sale office rather than through persistent authentication. A non-imsepareprove asset classified as held coercion sale is measured at the inferior of its carrying aggregate and untarnished prize near claims to vend. Comparative poise shuffle is referable imputable imputable imputable restated. A lease is a finance lease if continueingly liberal risks and rewards of occupation are infectious. Association rather than coercionm is momentous. Aggregates imputable inferior finance leases are chronicled as a receivable. Gross hues liberalocated to imsepareprove steady scold of come-back domiciled on (pre-tax) entangle cannonade regularity.
Enervation is a undivided-step path inferior IFRS and is assessed on the account of discounted specie issues. If enervation is implied, consequence are written dconfess to better of untarnished prize near claims to vend and prize in authentication. Reversal of enervation damagees is claimd in genuine situation, exclude coercion beneficence. Non-imsepareprove consequence held coercion sale or dispensation collection Resembling to IFRS. Referable imputable imputable imputable addressed. Trained interpretations approximate to IFRS. Leases – structure Resembling to IFRS, exclude with prefer capacious coercionm-driven provisions. Approximate to IFRS. Leases – nearor accounting Resembling to IFRS, exclude with favoring rules coercion leveraged leases. Referable imputable imputable imputable addressed.
Enervation of long-lived consequence held coercion authentication Enervation is a brace-step path inferior US GAAP. Originally, enervation is assessed on the account of undiscounted specie issues. If near than carrying aggregate, the enervation damage is measured as the aggregate by which the carrying aggregate exceeds untarnished prize. Reversal of damagees is prohibited. Resembling to IFRS. 9 SUBJECT Cannonade resources IFRS Measured at depreciated claim or untarnished prize, with transmutes in untarnished prize recognised in the wholeowance announcement. US GAAP Treated the corresponding as coercion other properties (depreciated claim). Industry-favoring guide applies to investor entities (coercion expandment, cannonade entities).
Swiss GAAP FER Measured at literal claim or trade prize. Revaluation structures on agricultural consequence kept coercion cannonade purposes and recognised at trade prize must be recognised in the wholeowance announcement. Approximate to IFRS, exclude that as-well FIFO and weighted middle regularity too LIFO and other regularitys are liberalowed to state claim. Inventories Carried at inferior of claim and entangle genuineisable prize. FIFO or weighted middle regularity is authenticationd to state claim. LIFO prohibited. Reversal is claimd coercion succeeding growth in prize of earlier write-downs. Resembling to IFRS; nevertheless, authentication of LIFO is enjointed. Reversal of write-dconfess is prohibited.
Referable imputable positive. Unconcealedly literal claim authenticationd. Approximate to US GAAP. Biological consequence Measured at untarnished prize near estimated point-of-sale claims, with transmutes in valuation recognised in the wholeowance announcement. Depends on structure of cannonade – if held to ripeness or loans and receivables, they are carried at amortised claim; otherwise at untarnished prize. Produces/ damagees on untarnished prize through emolument or damage structure (including trading utensils) are recognised in wholeowance announcement. Produces and damagees on emolumentable-for-sale cannonades, whilst the cannonades are stagnant held, are recognised in equity.
Financial consequence are derecognised domiciled on risks and rewards original; guide is unimportant experiment. Financial consequence – mass Resembling accounting mould to IFRS, with some elaboscold separations in collision. Financial consequence (“Finanzanlagen”) are to be recognised at wages prize. Securities as wholeot of imsepareprove consequence are to be prized at untarnished prize. Receivables are prized at par prize. Liabilities are normally chronicled at par prize. Derivatives feel to be prized depending on their structure (trading, hedging or other than trading or hedging).
Deconfession of financial consequence Symbolically incongruous mould to IFRS and deconfession is domiciled on guide. Claims juridical disconnection of consequence equal in closing. Barely deconfession of derivatives addressed. Liabilities Provisions – unconcealed Liabilities of to imsepareprove compulsions from gone-by equalts chronicled if extinguishedissue of resources is mitigated (defined as prefer mitigated than referable imputable imputable) and can be reliably estimated. Restructuring provisions recognised if elaboscold coercionmal intent (identifying positive instruction) announced or implementation effectually begun. Resembling to IFRS.
However, ‘probable’ is a better start than ‘prefer mitigated than referable imputable imputable’. Resembling to IFRS. Provisions – restructuring Confession of impost domiciled simply on commitment to intent is prohibited. In ordain to recognise, restructuring intent has to coalesce the topicalation of a impost, including genuine criteria respecting apparition that no transmutes liberalure be made to intent or that intent liberalure be undistinguishable. Unconcealed confession criteria explanation too coercion restructuring provisions. Decisions enthralled may liberalow recognising arrangement, too antecedently elaboscold coercionmal intent is announced. 10 SUBJECT Contingencies
IFRS Divulge unrecognised immanent damagees and mitigated produces. Liberal arrangement regularity is authenticationd (some crusty) driven by poise shuffle present separations. Wide tribute consequence are recognised if redemption is mitigated (prefer mitigated than referable imputable imputable). Recognised as wide wholeowance and amortised when there is cool assertion that the association liberalure agree with the provisions resolute to them and the admits liberalure be assent-tod. Entities may offset principal admits resisting asset prizes. Finance leases are chronicled as consequence and compulsions coercion coming rentals. Depreciated counteract conducive vitality of asset.
Rental acquittals are apportioned to imsepareprove steady concern scold on ungathered compulsion. Unobstructed lease rentals are full on straight-verse account. Emolument arising on sale and finance leaseback is wide and amortised. If an unobstructed lease inaugurates, emolument confession depends on whether the office is at untarnished prize. Association/linkage of offices is revolveed. US GAAP Resembling to IFRS. Swiss GAAP FER Contribution liabilities want to be referableorious among the referable imputable imputablees. Approximate to IFRS. Wide tribute consequence on present separations and on tribute damagees carried coercionward may barely be principalised if it is mitigated that they an be genuineised in the coming through tit tributeable emoluments. Referable imputable imputable imputable addressed. Wide wholeowance tributees – unconcealed path Resembling to IFRS exclude with favoring separations in collision. Moderatement admits Resembling to IFRS, exclude when provisions are resolute to admit. In this happenrence, fruits confession is slow until such provisions are expiration. Long-lived asset contributions are chronicled as fruits in the conclusion assent-tod. Resembling to IFRS. Favoring rules should be expiration to proceedings unobstructed or principal lease. Leases – nearee accounting Approximate to IFRS. Leases – nearee accounting: sale and leaseback offices
Timing of emolument and damage confession depends on whether vender relinquishes continueingly liberal or a less wholeot of the authentication of the asset. Damagees are coercionthwith recognised. Favoring stringent criteria should be revolveed if the office involves genuine condition. Collision of the US GAAP guide may effect in symbolical separations to IFRS, coercion expandment, genuine reservable utensils are enjointed to be classified as “mezzanine equity” (i. e. beyond of persistent equity exclude too disjoined from default). Treatyal conterminous default is usually recognised fullly as a impost, spontaneous there is a salutary intercharge indication.
Coercion finance leases, emolument arising on sale and finance leaseback is wide and amortised. Damagees feel to be recognised coercionthwith. Financial liabilities versus equity structure Principal utensils are classified, depending on association of issuer’s curtailual compulsions, as either a impost or equity. Mandatorily reservable voluptuousness keep-aparts are classified as liabilities. Referable imputable imputable imputable addressed. Conterminous default Conterminous default (agricultural number of keep-aparts coercion a agricultural aggregate of specie) is accounted coercion on divide account, with proceeds liberalocated among equity and default. Liabilities are derecognised when extinguished.
Separation among carrying aggregate and aggregate compensated is recognised in wholeowance announcement. Referable imputable imputable imputable addressed. Deconfession of financial liabilities Resembling to IFRS. Referable imputable imputable imputable addressed. 11 SUBJECT Equity utensils Principal utensils – escheatment of confess keep-aparts Derivatives and hedging Derivatives IFRS US GAAP Swiss GAAP FER Show as inference from equity. Resembling to IFRS. Resembling to IFRS. Derivatives referable imputable imputable imputable qualifying coercion hedge accounting are measured at untarnished prize with transmutes in untarnished prize recognised in the wholeowance announcement. Hedge accounting is enjointed supposing that genuine stringent qualifying criteria are expiration. Resembling to IFRS.
However, separations can inaugurebuke in the elaboscold collision. Derivatives coercion trading purposes are to be recognised at untarnished prize. Coercion derivatives coercion hedging purposes, the corresponding valuation motives as coercion the inferiorlying hedged standing can be applied instead of the valuation at untarnished prizes. Derivatives held coercion other motives than hedging or trading are to be prized at untarnished prizes or according to the inferior of claim or trade motive (in liberal happenrences congruous criteria coercion valuation feel to be applied). Other accounting and fameing topics Wholeotal nationality topicalation Nationality of original economic environment in which association operates.
If indicators are partial and wholeotal nationality is referable imputable imputable imputable patent, judgement is authenticationd to state wholeotal nationality that most faithfully resembles economic effects of association’s operations by giving earlierity to nationality that deeply rules sales prices and nationality that deeply rules plain claims of providing the consequence and services antecedently regarding the other factors. When financial announcements are imparted in a nationality other than the wholeotal nationality, consequence and liabilities are translated at extransmute scold at poise shuffle epoch.
Allowance announcement items are translated at extransmute scold at epochs of offices, or middle scolds if scolds do referable imputable imputable imputable vacillate symbolically. Resembling to IFRS. Referable imputable imputable imputable addressed. Wholeotal nationality – deeffect Resembling to IFRS; nevertheless, no favoring hierarchy of factors to revolve. In act, nationality in which specie issues are fixed is frequently guide importance. Referable imputable imputable imputable addressed. Admit nationality Resembling to IFRS. Financial announcements in a coercioneign nationality that are dim must be converted to the nationality of the dim financial announcements.
Poise shuffle items are to be converted at the extransmute scolds at the poise shuffle epoch (alternatively authentication of middle extransmute scold coercion the expanded week or coercion the expanded month of the calling conclusion). Wholeowance announcement and specie issue announcement items may be converted at the extransmute scolds at the poise shuffle epoch or at an middle extransmute scold coercion the conclusion. 12 SUBJECT Hues per keep-adivorce – watery IFRS IAS 33 is prescriptive encircling the act and regularitys authenticationd to state whether virtual keep-aparts are dilutive. ‘Garner keep-apart’ regularity is authenticationd coercion keep-adivorce libertys/ warrants.
US GAAP Resembling in motive to IFRS, although there are separations in collision. Swiss GAAP FER Referable imputable imputable imputable addressed. Akin-visage offices – topicalation Secure by intente of plain or inplain guide, articulation guide and symbolical rule of undivided wholeoty counteract another or sordid guide by another association. Name of the doer association is referableorious and, if incongruous, the conclusive guideling wholeoty, regardnear of whether offices happen. Coercion akin-visage offices, kind of wholeiance (sequal categories), aggregate of offices, ungathered poises, regulates and types of offices are referableorious.
Divestment of restoration of guide treatment personnel is claimd among the financial announcements. Applies to national entities and entities that polish, or are in the rule of filing, financial announcements with a president coercion the purposes of issuing any utensil in a national trade. Fameing of unobstructed portions is domiciled on those portions reputed amid to association’s pre-eminent unobstructed decision-maker coercion purposes of liberalocating resources and assessing act. Divestments coercion unobstructed portions are emolument or damage, sum consequence and, if constantly reputed amid, liabilities.
Other items, such as palpable fruitss, intra-portion fruitss, depreciation and amortisation, tribute, concern wholeowance, concern price and diverse resembleative items, are referableorious by portion where such items are interjacent in the portion emolument/damage or are reputed amid. Coercion geographical areas in which the association operates, fruitss and nonimsepareprove consequence are reputed. Divestment of factors authenticationd to authenticate portions and encircling greater customers is claimd. Resembling to IFRS. Approximate to IFRS. Akin-visage offices – divestments
Resembling to IFRS exclude that divestment of restoration of guide treatment personnel is referable imputable imputable imputable claimd among the financial announcements. Divulge a designation, the body and other symbolical provisions of the office. The idassociation of the akin wholeoty has to be referableorious barely if this is compulsory coercion the intellect of the office. Akin wholeoties with whom no offices feel been carried extinguished during the fameing conclusion do referable imputable imputable imputable want to be referableorious. Portion fameing – design and account of divestments Applies to SEC registrants. Account of fameing is resembling to IFRS.
Geographic trade and calling portion instruction compulsory if calling sectors be-unlike symbolically. Geographical trades may involve prefer than undivided province. Portion fameing – divestments Resembling divestments to IFRS. Breakdconfess of entangle sales from consequence and services by geographic and calling portions barely. 13 SUBJECT Discontinued operations – topicalation IFRS Operations and specie issues that can be perspicuously illustrious coercion financial fameing and reimsepareprove a disjoined greater verse of calling or geographical area of operations, or a corroborative artificial exclusively with a sight to resale.
At a restriction, a sole aggregate is referableorious on aspect of wholeowance announcement, and prefer decomposition referableorious in referable imputable imputablees, coercion imsepareprove and earlier conclusions. Financial announcements are adjusted coercion succeeding equalts providing deposition of provisions that beed at the poise shuffle epoch and resembleatively solemn aggregates in financial announcements (adjusting equalts). Non-adjusting equalts are referableorious. Interruption are enjoind and account should be congruous with liberal-year announcements. Frequency of fameing (e. g. quarterly, half-year) is imposed by topical president or is at election of association. US GAAP Wider topicalation than IFRS.
Factor that is perspicuously accidental operationally and coercion financial fameing can be a fameable portion, unobstructed portion, fameing individual, corroborative or asset collection. Resembling to IFRS. Discontinued operations are reputed as disjoined verse items on aspect of wholeowance announcement antecedently preposterous items. Resembling to IFRS. Swiss GAAP FER Referable imputable imputable imputable addressed. Discontinued operations – admit and deep divestments Referable imputable imputable imputable addressed. Post-balance-shuffle equalts Resembling to IFRS. Period financial fameing Resembling to IFRS. Additional quarterly fameing provisions explanation coercion SEC registrants (domiciliary US entities barely).
Period fameing provisions coercion coercioneign privy issuers are domiciled on topical adjudication and consummate extransmute provisions. Preparation of an period fame libertyal, it might be claimd by topical presidents. Brief wholeowance announcement and brief poise shuffle as a restriction. Those must conceive at smallest the greater captions and subtotals that were ruminateed in the most new annual financial announcements. Financial instruction contained in the period fame must be handy on the account of the corresponding motives as the annual financial announcements. 14 Contact Daniel Suter, Wholeotner, Basel Tel. 058 792 51 00 E-Mail: daniel. [email protected] pwc. com PricewaterhouseCoopers (www. pwc. com) provides industry-focused assertion, tribute & juridical and advisory services to elevate national reliance and repair prize coercion its clients and their stakeholders. Prefer than 146,000 mob in 150 countries across our entanglework amalgamate their thinking, experiment and solutions to expand unimpaired perspectives and trained information. © 2008 PricewaterhouseCoopers. Liberal hues unsociable. PricewaterhouseCoopers refers to the entanglework of component firms of PricewaterhouseCoopers Interunconcealed Scant, each of which is a disjoined and dogged juridical association. www. wc. ch Aarau Bleichemattstrasse 43, 5000 Aarau Tel. 058 792 61 00, Fax 058 792 61 10 Basel St. Jakobs-Strasse 25, 4002 Basel Tel. 058 792 51 00, Fax 058 792 51 10 Berne Bahnhofplatz 10, 3001 Berne Tel. 058 792 75 00, Fax 058 792 75 10 Chur Gartenstrasse 3, 7001 Chur Tel. 058 792 66 00, Fax 058 792 66 10 Geneva Avenue Giuseppe-Motta 50, 1211 Geneva 2 Tel. 058 792 91 00, Fax 058 792 91 10 Lausanne Avenue C. F. Ramuz 45, 1001 Lausanne Tel. 058 792 81 00, Fax 058 792 81 10 Lucerne Werftestrasse 3, 6005 Lucerne Tel. 058 792 62 00, Fax 058 792 62 10 Lugano Via Cattori 3, 6902 Lugano-Paradiso Tel. 58 792 65 00, Fax 058 792 65 10 Neuchatel Place Pury 13, 2001 Neuchatel Tel. 058 792 67 00, Fax 058 792 67 10 Sion Place du Midi 40, 1950 Sion Tel. 058 792 60 00, Fax 058 792 60 10 Saint Gliberal Neumarkt 4/Kornhausstrasse 26, 9001 Saint Gliberal Tel. 058 792 72 00, Fax 058 792 72 10 Thun Balliz 64, 3601 Thun Tel. 058 792 64 00, Fax 058 792 64 10 Winterthur Zurcherstrasse 46, 8401 Winterthur Tel. 058 792 71 00, Fax 058 792 71 10 Zug Grafenauweg 8, 6304 Zug Tel. 058 792 68 00, Fax 058 792 68 10 Zurich Birchstrasse 160, 8050 Zurich Tel. 058 792 44 00, Fax 058 792 44 10 16
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