"Obligationenrecht" or Swiss Code of Obligations

The commercial bookkeeping and accounting are regulated in Articles 957 ff. of the Swiss Code of Obligations.

These regulations are generally applicable to all companies in Switzerland (sole proprietorships, partnerships, and legal entities).

The law sets out a minimum structure for the balance sheet and income statement, as well as a minimum content for the notes to the financial statements.

Valuation should be cautious, without impeding the reliable assessment of the company's economic situation. Hidden reserves are still permissible.


Financial reporting for larger & listed companies

The financial reporting for larger entities subject to regular audits includes a cash flow statement, further disclosures in the notes to the financial statements, and a management report.

Listed companies, cooperatives with more than 2’000 members, and foundations subject to regular audits are required to prepare an additional separate financial statement according to an accepted standard (e.g., IFRS or Swiss GAAP FER). However, they are exempted if a consolidated financial statement is prepared according to an accepted standard.

A consolidated financial statement is required when one or more companies are controlled, and it must adhere to the principles of proper accounting. Only consolidated financial statements of publicly traded companies, large cooperatives, and foundations subject to regular audits must be prepared in accordance with a True & Fair View standard.

KPMG's financial reporting expertise

  • Clarifying application-related issues
  • Implementing the new financial reporting requirements
  • Understanding the options and the room to maneuver each one offers
  • Preparing cash flow statements and management reports for larger entities
  • Preparing financial statements as per a recognized standard for large cooperatives and foundations