What is the most complex accounting standard

If the group management or the management is considering financial statements in accordance with a recognized accounting standard (voluntarily or in accordance with Art. 962 OR or the Federal Ordinance on Recognized Accounting Standards (VASR)), there is usually a distinction between IFRS for SMEs (IFRS for SMEs) and Full IFRS and Swiss GAAP FER decided.

The following questions are usually in the foreground when making a decision:

  • Is it a stand-alone financial statement or a group of companies.
  • The financial statement is used for reporting as the parent company to the shareholders or, for example, as a supplement to the main investor (group reporting).
  • Is the reporting company currently or in the future oriented nationally or internationally; with regard to group companies and / or with regard to investors.

While the full IFRS is the most complex and costly accounting standard with recurring costs that should not be underestimated, its introduction to existing or potential international investors can also make sense in connection with an intended IPO.

IFRS for SMEs can be a very interesting alternative (without the intention of an IPO) to the full IFRS and the Swiss GAAP FER. The IFRS for SMEs have been translated into over 20 languages ​​(REWISCO AG is the translator of the German-language edition), which makes communication with foreign subsidiaries or investors much easier. The implementation costs are a lot lower than for the full IFRS. In addition, experience has shown that the financial managers of the respective national companies understand the IFRS for SMEs more quickly than with the Full IFRS or Swiss GAAP FER.

The Swiss GAAP FER are an interesting standard, but are essentially geared towards Switzerland and are sufficient for purely domestic conditions, without prospects for growth abroad or the involvement of foreign investors.
Despite the availability of an English translation of the Swiss GAAP FER, experience has shown that these are rather difficult or difficult for a group consolidation with foreign subsidiaries or as an information tool for foreign investors. is associated with additional effort. This applies not only to the understanding of Swiss GAAP FER by the local financial officers, but also to the understanding of the local auditors.

Our team has decades of experience in consolidation and reporting / accounting. We continuously oversee projects in these areas.