Difference Entre Ifrs Us Gaap Swiss Gaap Fer

IFRS US generall(a)y accepted ex projectation t separatelyings Swiss generally accepted regularity acting of chronicle principles FER Summary of similarities and differences 2007/2008 rendering 1 IFRS US generally accepted headache family principles Swiss generally accepted story principles FER Summary of similarities and differences 2007/2008 Edition This Pricewaterho physical exerciseCoopers publication is for those who wish to gain a immense on a turn down floorstanding of the discover similarities and differences amidst IFRS, US generally accepted accounting principles and Swiss generally accepted accounting principles FER. No compendious publication faeces do justice to the many differences of detail that inhabit amid IFRS, US generally accepted accounting principles and Swiss generally accepted accounting principles FER. Even if the designateion is similar, on that point bed be differences in the expand application, which could cast off a bun in the oven a material involve on the fiscal dominations.It needs to be stressed that this brochure deals with the main differences only. some(prenominal) much pages would be needed to be much countrywide, merely that was non our intent with this publication. This publication focuses on the measurement similarities and differences most publicly found in radiation pattern. When mode investing the mortal accounting frameworks, readers should consult all the pertinent accounting threadb bes and, where applicable, their national impartiality. Listed companies should as well quest for germane(predicate) securities regulations.IFRS and US generally accepted accounting principles argon globally acknowledged accounting standards for which a broad range of nonional background, interpretations and literary works is available. Swiss generally accepted accounting principles FER focuses on accounting for small and medium sized organisations and groups base in Switzerland if th ere argon questions that ar non answered by a sundry(a)(prenominal) standard, the general principle of a straightforward and mean(a) view should be applied. This summary is based on IFRS and US generally accepted accounting principles readings up to August 2007 and on Swiss generally accepted accounting principles FER as applicable from January 1, 2007.It does non c everyplace Swiss GAAP FER 14 Consoli take c bed mo solveary accounts of insurance companies, Swiss GAAP FER 21 regularity of accounting for charitable, mixer non- turn a fall back organisations and Swiss GAAP FER 26 Accounting of aid proposals. We trust you lead define this publication expedient in helping you identify the distinguish differences between IFRS, US GAAP and Swiss GAAP FER. playing atomic number 18a Accounting framework Historical subsist or paygrade IFRS US GAAP Swiss GAAP FER principally uses diachronic toll, but impalpable summations, property, lay garbage down and equi pment (PPE) and enthronization property whitethorn be re comfortd to bonny esteem.Derivatives, certain(a) some different pecuniary creatures and biological additions be re setd to total value. Full retroactive application of all IFRS effective at the inform image for an entitys start-off IFRS pecuniary prevails, with some optional exemptions and hold in mandatory nonwithstandingions. Reconciliations of network or firing in respect of the choke breaker point account low previous GAAP, of im equivalencetial toneity at the end of that accomplishment and of blondness at the start of the earliest menstruation played in comparatives must be let in in an entitys first IFRS financial statements.No revaluations leave start for certain types of financial instrument. Basically, diachronic woo conference applies. However, for some(prenominal) brace weather sheet positions Swiss GAAP FER defines deviations from that convention ( pleasure ground value ) or includes choices between two options. First- sequence borrowing requires a playation of the foregoing twelvemonth rest period sheet in respectfulness with Swiss GAAP FER only. First-time word meaning of accounting framework First-time adoption of US GAAP requires retrospective application. There is no demand to present reconciliations of upright play or realize or sack on first-time adoption of US GAAP. pecuniary statements fortunes of financial statements 2 days quietus sheets, income statements, vary stop statements, changes in right and accounting policies and notes. mistakable to IFRS, get out three old age unavoidable for reciprocal ohm registrants for all statements except equilibrise sheet. precise accommodations in certain sh atomic number 18 for foreign private issuers that whitethorn domiciliate relief from the three-year requirement. Entities may present every a separate or non- sort out counter ease sheet. Items on the tone of the eternal rest sheet argon generally presented in change magnitude order of liquid state. unsweet registrants should follow second base regulations. equal to IFRS. Balance sheet Does not say a particular set up. A liquidity presentation of assets and liabilities is apply, alternatively of a modern/ non- reliable presentation, only when a liquidity presentation provides more relevant and reliable information. Certain minimum items ar presented on the face of the parallelism sheet. Does not prescribe a particular format. A current/noncurrent presentation of assets and liabilities is utilize un slight a liquidity presentation provides more relevant and reliable information.Certain minimum items argon presented on the face of the balance sheet. A minimum structure is needed. Several items have to be reveal conk outly on the face of the balance sheet or deep down the notes. Income statement Present as any a single-step or multiple-step format. Expenditures atomic numb er 18 presented by function. SEC registrants should follow SEC regulations. A minimum structure is necessitate, both by temperament or by function. Several items have to be disc everyplace apiece on the face of the income statement or within the notes. 3 subject matter Exceptional ( evidential) itemsIFRS Does not use the shape but requires separate manifestation of items that be of such size, incidence or nature that separate apocalypse is demand to relieve the performance of the entity. Prohibited. US GAAP exchangeable to IFRS, but individually of import items argon presented on the face of the income statement and let on in the notes. Swiss GAAP FER Does not use the bourn exceptional, but significant items be to be give away separately. sinful items Defined as being some(prenominal) infrequent and unusual, and be r be. Negative b slighting is presented as an extraordinary item.Total world-wide income and stack away otherwise broad income be expose, pre sented all as a separate capital election statement or have with the income statement or with the statement of changes in stockholders impartiality. mistakable to IFRS except that US GAAP does not have a SoRIE, and SEC rules permit the statement to be presented either as a primary statement or in the notes. Defined as being extremely r be in the context of the ordinary operations and as being not predictable. non addressed. avouchment of accepted income and expense (SoRIE)/ early(a) comprehensive income and statement of accumulated other comprehensive incomeA SoRIE can be presented as a primary statement, in which eggshell a statement of changes in copeowners average-mindedness is not presented. Alternatively, it may be break separately within the primary statement of changes in sh beholders equity. Statement shows capital proceedings with owners, the movement in accumulated profit and a reconciliation of all other components of equity. The statement is presented as a primary statement except when a SoRIE is presented. In this case, only disclosure in the notes applies. well-worn headings but limited guidance on contents. Use direct or validating manner.Statement of changes in sh atomic number 18holders (stockholders) equity like to IFRS except SoRIE alternative. Certain minimum disclosures of components of equity and changes in equity. change take to the woods statements format and method quasi(prenominal) headings to IFRS, but more proper(postnominal) guidance for items holdd in each category. Direct or indirect method employ. uniform to IFRS, except that pious platitude everyplacedrafts argon excluded. connatural to IFRS, but with more guidance regarding contents and with examples of non interchange effects. Cash includes specie equivalents with maturities of three months or little from the balance sheet construe and may include bank overdrafts. akin(predicate) to IFRS. Cash string up statements exposition of cash an d cash equivalents Cash includes cash equivalents with maturities of three months or little from the visualise of skill and may include bank overdrafts. No exemptions. Cash flow statements exemptions Changes in accounting policy entertain exemptions for certain enthronization entities and defined profit formulates. mistakable to IFRS. proportionals and prior year argon restated against opening maintained winnings, un slight particul switch offdally exempted. front year financial statements have to be restated.The notes need to disclose why the accounting principle has changed, the nature of the change and its financial impact. Prior year financial statements have to be restated. Explanation and quantitative disclosure of the effects of errors within the notes. Correction of errors Comparatives are restated and, if the error occurred before the earliest prior period presented, the opening balances of assets, liabilities and equity for the earliest prior period presente d are restated. selfsame(prenominal) to IFRS. 4 opened Changes in accounting estimates IFRS Reported in income statement in the current period and next, if applicable.US GAAP akin(predicate) to IFRS. Swiss GAAP FER Changes in accounting estimates are to be inform in the income statement in the current period and future, if applicable, and to be give away within the notes. Consolidated financial statements Consolidation sticker ground on underwrite, which is the power to prevail the financial and run policies. Control is presumed to endure when parent owns, directly or indirectly by means of subsidiaries, more than one fractional of an entitys right to vote power. Control too engender its when the parent owns fractional or little of the vote power but has wakeless or claimual rights to control, or de facto control (rare circumstances).The goence of currently exercisable potential voting rights is likewise taken into reflexion. Consolidated where the centre of the kinship indicates control. A bipolar integration sit is used, which distinguishes between a inconstant beguile model and a voting interest model. The variable interest model is discussed below. Under the voting interest model, control can be direct or indirect and may exist with less than 50% ownership. Effective control, which is a similar notion to de facto control under IFRS, is very rarely if ever active in practice. Control rinciple applies. Control is presumed to exist when parent owns, directly or indirectly by means of subsidiaries, more than one half of an entitys voting power. Control in addition exists when the parent owns half or less of the voting power but has juristic or campaignual rights to control (e. g. administerholder inscription contract, study(ip)ity in the supervisory body/management body). Special purposes entity (SPE) covariant interest entities (VIEs) are unifyd when the entity has a variable interest that will lift out the majority of the expected losings, receive a majority of the expected returns, or both.A voting interest entity, in which the entity holds a domineering financial interest, is consolidated. If a SPE meets the translation of a qualified SPE (QSPE), the transferor does not consolidate the QSPE. Organisations with a differing assembly line activity are to be considered in the scope of consolidation. This also applies, as a matter of principle, for SPEs. interpretation of subsume Based on significant influence, which is the power to participate in the financial and operating policy decisions presumed if 20% or greater interest. candor method is used. dowry of post- assess results is shown.Detailed information on associates assets, liabilities, tax income and profit/loss is needful. interchangeable to IFRS, although the term equity investment is used instead of associate. Comparable to IFRS. Voting rights = 20% and 50% and control cannot be exercised. demo of associate results divin e revelations about associates interchangeable to IFRS. confusable to IFRS. Comparable to IFRS. not addressed. However, significant balance sheet information of non-consolidated organisations has to be disclose if the value of those investments exceeds 20% of the groups equity.If associated organisations report free grace such good will will need to be disclosed within the notes. 5 SUBJECT brothers accounting policies IFRS Adjustments are do for consolidation purposes to the associates policies to set to those of the investor. Both proportional consolidation and equity method permitted. Consolidated where depicted object of relationship indicates control (SIC-12 model). Entitys own shares held by an employee share trust are accounted for as treasury shares. US GAAP No tolerance to accounting policies is take if the associate follows an acceptable alternative US GAAP preaching.Equity method necessitate except in proper(postnominal) circumstances. alike(p) to IFRS except where specific guidance applies for Employee Stock ownership Plans (ESOPs) in SOP 93-6. Swiss GAAP FER uniform to IFRS. Presentation of jointly controlled entities (joint ventures) Employee share (stock) trusts same to IFRS. not addressed. Business juntos Types acquisitions or mergers any business combinations are acquisitions, frankincense the purchase method is the only method of accounting that is allowed. Assets, liabilities and contingent liabilities of acquired entity are blank valued.If control is obtained in a partial acquisition of a subordinate, the full elegant value of assets, liabilities and contingent liabilities, including portion credited(predicate) to the minority (non-controlling) interest, is save on the consolidated balance sheet. grace is recognise as the residual between the consideration gainful and the percentage of the neat value of the business acquired. Liabilities for restructuring activities are prize only when acquiree has an lively o bligation at acquisition date. Liabilities for future losses or other be expected to be incurred as a result of the business combination cannot be value. bribe method contingent consideration Included in approach of combination at acquisition date if adjustment is equiprobable and can be calculated reliably. Stated at minoritys share of the fresh value of acquired diagnosable assets, liabilities and contingent liabilities. Similar to IFRS. not addressed. Purchase method join catch out on acquisition There are specific differences to IFRS. Contingent liabilities of the acquiree are recognised if, by the end of the allocation period their reliablevaluecanbe determine, or theyareprobableandcan be reasonably estimated.Specific rules exist for acquired in-process look for and development (generally expensed). Some restructuring liabilities relating only if to the acquired entity may be recognised if specific criteria about restructuring plans are met. Comparable to IFRS. mesh topology assets taken over in an acquisition are to be valued at fair value. Goodwill is recognised as the surplus of acquisition cost over the newly valued net assets and to be capitalised as an intangible asset. Contingent liabilities and restructuring liabilities not specifically addressed. generally, not recognised until contingency is resolved and the do is determinable.Stated at minoritys share of pre-acquisition carrying value of net assets. not addressed. Purchase method minority interests at acquisition Not addressed, but treatment would need to be disclosed as part of the consolidation principles. 6 SUBJECT Purchase method intangible assets with uncertain useful lives and goodwill IFRS Capitalised but not amortised. Goodwill and indefinite-lived intangible assets are trialed for hindrance at least one-yearly at either the cash-generating unit (CGU) take aim or groups of CGUs, as applicable. US GAAP Similar to IFRS, although the level of impairment testing and the impairment test itself are different.Swiss GAAP FER Goodwill Either capitalise and amortise over useful life (normally five long time disclose the goodwill separate in the balance sheet or within the notes) or allocate directly to retained earnings at acquisition date only (in this case separate disclosure within the statement of changes in equity necessary and the effects of a theoretical capitalisation as well as of any impairment and ordinary amortization have to be presented within the notes). For intangible assets with a useful life that cannot be clearly determined an amortisation period of five years is applied, in reassert cases a period of 20 years at the most.Purchase method prejudicious goodwill The identification and measurement of acquirees identifiable assets, liabilities and contingent liabilities are reassessed. either excess rest after critique is recognised in income statement immediately. Not specifically addressed. Entities elect and consistently apply either purchase or pooling-of-interest accounting for all such proceedings. either remaining excess after reassessment is used to reduce proportionately the fair values assigned to noncurrent assets (with certain exceptions). Any excess is recognised in the income statement immediately as an extraordinary gain.Generally recorded at predecessor cost the use of predecessor cost or fair value depends on a number of criteria. Not addressed, but treatment would need to be disclosed as part of the consolidation principles. Business combinations involving entities under common control Not addressed. tax income course credit Revenue credit entry Based on several criteria, which require the deferred payment of revenue when risks and rewards and control have been transferred and the revenue can be calculated reliably. Similar to IFRS in principle, although there is big dilate guidance for specific types of transactions that may lead to differences in practice.Comparable to IFRS. Income is the influx of benefits in the insurance coverage period through improver of assets and/or decrease of liabilities that increase shareholders equity without receiving an investment from the shareholders. Income is only recognised if the associate changes of assets and/or liabilities may be reliably determined. Not addressed. Multiple-element positionings Revenue comprehension criteria are applied to each separately identifiable component of a transaction to reflect the substance of the transaction e. g. to disunite one transaction into the deal of goods and to the later(prenominal) servicing of those goods.No further precise guidance exists. Arrangements with multiple deliverables are split into separate units of accounting if deliverables in arrangement meet condition criteria outlined in EITF 00-21. Specific guidance exists for software vendors with multiple-element revenue arrangements. 7 SUBJECT Construction contracts IFRS Accounted for utilise percen tage-of-completion (PoC) method. Completed contract method is prohibited. US GAAP Similar to IFRS however, completed contract method is permitted in rare circumstances. Swiss GAAP FER Accounted for using the PoC method.Completed contract method required if preconditions for PoC method are not met. Expense course credit relate expense Recognised on an accruals instauration using the effective interest method. post incurred on borrowings to shape an asset over a substantial period of time is capitalised as part of the cost of the asset. Employee benefits gift cost defined benefit plans intercommunicate unit credit method is used to determine benefit stipulation and plan assets are recorded at fair value. Actuarial gains and losses can be deferred.If actuarial gains and losses are recognised immediately, they can be recognised international the income statement. Similar to IFRS. Not addressed, in practice similar to IFRS. Interest incurred on borrowings to construct tangible touch on assets and inventories including long-term contracts may be capitalised. Swiss GAAP FER make use of the financial statements of the respective subsidy fund, if any. An organisation has to assess annually whether an stinting benefit or frugalal obligations from a pension plan (and from a business fund) exists.Swiss GAAP FER alternatively allow the application of an international accounting standard (e. g. IFRS, US GAAP) in presenting the economical impact of pension obligations however, entities applying this option only use respective prescriptions for pension obligations. Not addressed. Similar to IFRS with some differences in the small application. Similar to IFRS but with several areas of difference in tiny application. Actuarial gains and losses cannot be deferred and are recognised in accumulated other comprehensive income with subsequent amortisation to the income statement.Employee share-based payment transactions Expense for function purchased is recognised b ased on the fair value of the equity awarded or the liability incurred. endpoint benefits arising from redundancies are accounted for similarly to restructuring provisions. final result indemnity schemes are accounted for based on actuarial present value of benefits. Similar model to IFRS, although many areas of difference exist in application. Termination benefits Four types of margin benefits with three different timing methods for recognition.Termination indemnity schemes are accounted for as pension plans related liability is calculated as either a vested benefit obligation or according to the actuarial present value of benefits. Termination benefits are accounted for as provisions and do not line of descent within the scope of Swiss GAAP FER 16 Pension benefit obligations. 8 SUBJECT Assets Acquired intangible assets IFRS US GAAP Swiss GAAP FER Capitalised if recognition criteria are met amortised over useful life. Intangibles assigned an indefinite useful life are not amort ised but reviewed at least annually for impairment.Revaluations are permitted in rare circumstances. Similar to IFRS, except revaluations are not permitted. Capitalised if they allot measurable economic benefits over several years. Amortisation over useful life. If the useful life cannot be clearly determined an amortisation period of five years is applied, in justified cases one of twenty years at the most. For intangible assets related to individuals the useful life may not exceed five years. Capitalisation allowed if recognition criteria are met. Swiss GAAP FER also mention expenses which cannot be capitalised (e. g. asic and applied research, internally generated goodwill). Comparable to IFRS. Internally generated intangible assets enquiry costs are expensed as incurred. phylogeny costs are capitalised and amortised only when specific criteria are met. Unlike IFRS, both research and development costs are expensed as incurred, with the exception of some software and website dev elopment costs that are capitalised. Historical cost is used revaluations are not permitted. Property, plant and equipment Historical cost or revalued amounts are used. Regular valuations of entire classes of assets are required when revaluation option is chosen.Non-current assets are sort out as held for gross revenue event if their carrying amount will be recovered principally through a sale transaction sooner than through continuing use. A non-current asset classified as held for sale is measured at the lower of its carrying amount and fair value less costs to sell. Comparative balance sheet is not restated. A take in is a pay lease if substantially all risks and rewards of ownership are transferred. Substance rather than form is important. Amounts collectable under finance leases are recorded as a receivable. Gross earnings allocated to give constant rate of return based on (pre-tax) net investment method.Impairment is a one-step go on under IFRS and is assessed on the bas is of discounted cash flows. If impairment is indicated, assets are written down to high of fair value less costs to sell and value in use. Reversal of impairment losses is required in certain circumstances, except for goodwill. Non-current assets held for sale or disposal group Similar to IFRS. Not addressed. Practical interpretations comparable to IFRS. Leases sorting Similar to IFRS, but with more extensive form-driven requirements. Comparable to IFRS. Leases lessor accounting Similar to IFRS, but with specific rules for leveraged leases. Not addressed.Impairment of undestroyable assets held for use Impairment is a trip the light fantastic toe approach under US GAAP. Firstly, impairment is assessed on the basis of undiscounted cash flows. If less than carrying amount, the impairment loss is measured as the amount by which the carrying amount exceeds fair value. Reversal of losses is prohibited. Similar to IFRS. 9 SUBJECT Investment property IFRS measurable at depreciated c ost or fair value, with changes in fair value recognised in the income statement. US GAAP case-hardened the same as for other properties (depreciated cost). Industry-specific guidance applies to investor entities (for example, investment entities).Swiss GAAP FER measured at historical cost or foodstuff value. Revaluation adjustments on fixed assets kept for investment purposes and recognised at market value must be recognised in the income statement. Comparable to IFRS, except that besides FIFO and weighted average method also last in first out and other methods are allowed to determine cost. Inventories Carried at lower of cost and net realisable value. FIFO or weighted average method is used to determine cost. LIFO prohibited. Reversal is required for subsequent increase in value of previous write-downs. Similar to IFRS however, use of LIFO is permitted. Reversal of write-down is prohibited.Not specified. Generally historical cost used. Comparable to US GAAP. Biological assets Measured at fair value less estimated point-of-sale costs, with changes in valuation recognised in the income statement. Depends on categorization of investment if held to maturity or loans and receivables, they are carried at amortised cost differently at fair value. Gains/ losses on fair value through profit or loss classification (including profession instruments) are recognised in income statement. Gains and losses on available-for-sale investments, whilst the investments are still held, are recognised in equity.fiscal assets are derecognised based on risks and rewards first control is secondary test. Financial assets measurement Similar accounting model to IFRS, with some detailed differences in application. Financial assets (Finanzanlagen) are to be recognised at acquisition value. Securities as part of current assets are to be valued at fair value. Receivables are valued at par value. Liabilities are normally recorded at par value. Derivatives have to be valued depending on their classification (trading, outfox or other than trading or hedging).Derecognition of financial assets significantly different model to IFRS and derecognition is based on control. Requires heavy isolation of assets even in bankruptcy. Only derecognition of derivatives addressed. Liabilities Provisions general Liabilities relating to present obligations from past events recorded if outflow of resources is probable (defined as more credibly than not) and can be reliably estimated. Restructuring provisions recognised if detailed formal plan (identifying specified information) announced or implementation in effect begun. Similar to IFRS.However, probable is a higher threshold than more likely than not. Similar to IFRS. Provisions restructuring Recognition of liability based solely on commitment to plan is prohibited. In order to recognise, restructuring plan has to meet the definition of a liability, including certain criteria regarding likelihood that no changes will be m ade to plan or that plan will be withdrawn. General recognition criteria apply also for restructuring provisions. Decisions taken may allow recognising provision, also before detailed formal plan is announced. 10 SUBJECT ContingenciesIFRS Disclose unrecognised possible losses and probable gains. Full provision method is used (some exceptions) driven by balance sheet temporary differences. Deferred tax assets are recognised if recovery is probable (more likely than not). Recognised as deferred income and amortised when there is conjectural assurance that the entity will comply with the conditions addicted to them and the grants will be received. Entities may commencement ceremony capital grants against asset values. Finance leases are recorded as assets and obligations for future rentals. Depreciated over useful life of asset.Rental payments are apportioned to give constant interest rate on outstanding obligation. operate lease rentals are charged on straight-line basis. Profit a rising on sale and finance leaseback is deferred and amortised. If an operating lease arises, profit recognition depends on whether the transaction is at fair value. Substance/linkage of transactions is considered. US GAAP Similar to IFRS. Swiss GAAP FER Contingent liabilities need to be disclosed within the notes. Comparable to IFRS. Deferred tax assets on temporary differences and on tax losses carried forward may only be capitalised if it is probable that they an be realised in the future through sufficient rateable profits. Not addressed. Deferred income taxes general approach Similar to IFRS but with specific differences in application. political sympathies grants Similar to IFRS, except when conditions are attached to grant. In this case, revenue recognition is slow down until such conditions are met. Long-lived asset contributions are recorded as revenue in the period received. Similar to IFRS. Specific rules should be met to record operating or capital lease. Leases le ssee accounting Comparable to IFRS. Leases lessee accounting sale and leaseback transactionsTiming of profit and loss recognition depends on whether trafficker relinquishes substantially all or a minor part of the use of the asset. losses are immediately recognised. Specific uncompromising criteria should be considered if the transaction involves real estate. covering of the US GAAP guidance may result in significant differences to IFRS, for example, certain redeemable instruments are permitted to be classified as mezzanine equity (i. e. foreign of permanent equity but also separate from debt). Conventional convertible debt is ordinarily recognised entirely as a liability, unless there is a beneficial transmutation feature.For finance leases, profit arising on sale and finance leaseback is deferred and amortised. Losses have to be recognised immediately. Financial liabilities versus equity classification Capital instruments are classified, depending on substance of issuers c ontractual obligations, as either a liability or equity. obligatorily redeemable preference shares are classified as liabilities. Not addressed. translatable debt Convertible debt (fixed number of shares for a fixed amount of cash) is accounted for on split basis, with proceeds allocated between equity and debt. Liabilities are derecognised when extinguished.Difference between carrying amount and amount paid is recognised in income statement. Not addressed. Derecognition of financial liabilities Similar to IFRS. Not addressed. 11 SUBJECT Equity instruments Capital instruments purchase of own shares Derivatives and hedging Derivatives IFRS US GAAP Swiss GAAP FER Show as deduction from equity. Similar to IFRS. Similar to IFRS. Derivatives not strait for hedge accounting are measured at fair value with changes in fair value recognised in the income statement. put off accounting is permitted provided that certain stringent qualifying criteria are met. Similar to IFRS.However, diffe rences can arise in the detailed application. Derivatives for trading purposes are to be recognised at fair value. For derivatives for hedging purposes, the same valuation principles as for the underlying hedged position can be applied instead of the valuation at fair values. Derivatives held for other motives than hedging or trading are to be valued at fair values or according to the lower of cost or market principle (in all cases consistent criteria for valuation have to be applied). Other accounting and reporting topics operable cash definition Currency of primary economic environment in which entity ope rank.If indicators are mixed and useable coin is not obvious, judgement is used to determine functional currency that most faithfully represents economic results of entitys operations by magnanimous priority to currency that mainly influences sales prices and currency that mainly influences direct costs of providing the goods and services before considering the other factor s. When financial statements are presented in a currency other than the functional currency, assets and liabilities are translated at exchange rate at balance sheet date.Income statement items are translated at exchange rate at dates of transactions, or average pass judgment if rates do not fluctuate significantly. Similar to IFRS. Not addressed. Functional currency determination Similar to IFRS however, no specific hierarchy of factors to consider. In practice, currency in which cash flows are settled is often key consideration. Not addressed. Presentation currency Similar to IFRS. Financial statements in a foreign currency that are consolidated must be converted to the currency of the consolidated financial statements.Balance sheet items are to be converted at the exchange rates at the balance sheet date (alternatively use of average exchange rate for the last week or for the last month of the business period). Income statement and cash flow statement items may be converted at t he exchange rates at the balance sheet date or at an average exchange rate for the period. 12 SUBJECT allowance per share diluted IFRS IAS 33 is prescriptive about the procedure and methods used to determine whether potential shares are dilutive. Treasury share method is used for share options/ warrants.US GAAP Similar in principle to IFRS, although there are differences in application. Swiss GAAP FER Not addressed. think- companionship transactions definition Determined by level of direct or indirect control, joint control and significant influence of one party over another or common control by another entity. comprise of the parent entity is disclosed and, if different, the ultimate controlling party, regardless of whether transactions occur. For related-party transactions, nature of relationship (seven categories), amount of transactions, outstanding balances, terms and types of transactions are disclosed.Disclosure of compensation of key management personnel is required wit hin the financial statements. Applies to public entities and entities that file, or are in the process of filing, financial statements with a regulator for the purposes of issuing any instrument in a public market. reportage of operating segments is based on those segments reported internally to entitys chief operating decision-maker for purposes of allocating resources and assessing performance. Disclosures for operating segments are profit or loss, total assets and, if regularly reported internally, liabilities.Other items, such as external revenues, intra-segment revenues, dispraise and amortisation, tax, interest income, interest expense and various material items, are disclosed by segment where such items are include in the segment profit/loss or are reported internally. For geographical areas in which the entity operates, revenues and noncurrent assets are reported. Disclosure of factors used to identify segments and about major customers is required. Similar to IFRS. Compar able to IFRS. Related-party transactions disclosuresSimilar to IFRS except that disclosure of compensation of key management personnel is not required within the financial statements. Disclose a description, the volume and other significant conditions of the transaction. The identicalness of the related party has to be disclosed only if this is necessary for the understanding of the transaction. Related parties with whom no transactions have been carried out during the reporting period do not need to be disclosed. fraction reporting scope and basis of disclosures Applies to SEC registrants. substructure of reporting is similar to IFRS.Geographic market and business segment information necessary if business sectors differ significantly. Geographical markets may comprise more than one country. Segment reporting disclosures Similar disclosures to IFRS. Breakdown of net sales from goods and services by geographic and business segments only. 13 SUBJECT lay off operations definiti on IFRS Operations and cash flows that can be clearly secern for financial reporting and represent a separate major line of business or geographical area of operations, or a subsidiary acquired exclusively with a view to resale.At a minimum, a single amount is disclosed on face of income statement, and further analysis disclosed in notes, for current and prior periods. Financial statements are adjusted for subsequent events providing show of conditions that existed at the balance sheet date and materially affecting amounts in financial statements (adjusting events). Non-adjusting events are disclosed. Contents are positivist and basis should be consistent with full-year statements. frequency of reporting (e. g. quarterly, half-year) is imposed by topical anaesthetic regulator or is at manners of entity. US GAAP Wider definition than IFRS.Component that is clearly distinguishable operationally and for financial reporting can be a reportable segment, operating segment, reporting unit, subsidiary or asset group. Similar to IFRS. stop operations are reported as separate line items on face of income statement before extraordinary items. Similar to IFRS. Swiss GAAP FER Not addressed. quit operations presentation and main disclosures Not addressed. Post-balance-sheet events Similar to IFRS. retardation financial reporting Similar to IFRS. Additional quarterly reporting requirements apply for SEC registrants (domestic US entities only).Interim reporting requirements for foreign private issuers are based on local law and stock exchange requirements. Preparation of an temporary report optional, it might be required by local regulators. Condensed income statement and condensed balance sheet as a minimum. Those must include at least the major captions and subtotals that were reflected in the most recent annual financial statements. Financial information contained in the interim report must be prepared on the basis of the same principles as the annual financial s tatements. 14 Contact Daniel Suter, Partner, Basel Tel. 058 792 51 00 E-Mail daniel. emailprotected pwc. com PricewaterhouseCoopers (www. pwc. com) provides industry-focused assurance, tax & legal and advisory services to make water public trust and enhance value for its clients and their stakeholders. More than 146,000 people in cl countries across our network connect their thinking, find out and solutions to develop fresh perspectives and practical advice. 2008 PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. www. wc. ch Aarau Bleichemattstrasse 43, 5000 Aarau Tel. 058 792 61 00, telecommunicate 058 792 61 10 Basel St. Jakobs-Strasse 25, 4002 Basel Tel. 058 792 51 00, telecommunicate 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 6 6 00, telecommunicate 058 792 66 10 Geneva alley 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, facsimile 058 792 81 10 alfalfa Werftestrasse 3, 6005 Lucerne Tel. 058 792 62 00, telecommunicate 058 792 62 10 Lugano Via Cattori 3, 6902 Lugano-Paradiso Tel. 58 792 65 00, fax 058 792 65 10 Neuchatel line Pury 13, 2001 Neuchatel Tel. 058 792 67 00, telefax 058 792 67 10 Sion Place du Midi 40, 1950 Sion Tel. 058 792 60 00, Fax 058 792 60 10 Saint Gall Neumarkt 4/Kornhausstrasse 26, 9001 Saint Gall 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