Difference Entre Ifrs Us Gaap Swiss Gaap Fer

IFRS US GAAP Swiss GAAP FER Resume of homogeneousities and contrarietys 2007/2008 Edition 1 IFRS – US GAAP – Swiss GAAP FER Resume of homogeneousities and contrarietys 2007/2008 Edition This PricewaterhouseCoopers divulgation is for those who eagerness to compel a capacious discernment of the key homogeneousities and contrarietys betwixt IFRS, US GAAP and Swiss GAAP FER. No resume divulgation can do right to the sundry contrarietys of element that insist betwixt IFRS, US GAAP and Swiss GAAP FER. Equable if the restrain is homogeneous, there can be contrarietys in the elemented impression, which could entertain a esthetic impression on the financial announcements. It scarcitys to be stressed that this Nursing essay deals delay the ocean contrarietys simply. Sundry neutralize pages would be scarcityed to be neutralize wide, but that was not our concrete delay this divulgation. This divulgation focuses on the configuration homogeneousities and contrarietys most commsimply base in exercitation. When adduceing the identical accounting frameworks, readers should advise-behind a while all the pertinent accounting trutinations and, where conducive, their generally-knownly-known law. Listed companies should to-boot ensue pertinent securities regulations. IFRS and US GAAP are globally unquestioned accounting trutinations for which a capacious class of presumptive elucidation, interpretations and lore is conducive. Swiss GAAP FER focuses on accounting for slight and counterpoise extentd organisations and clumps established in Switzerland; if there are questions that are not answered by a relative trutination, the generally-known rule of a gentleman and clear purpose should be applied. This resume is established on IFRS and US GAAP crops up to August 2007 and on Swiss GAAP FER as conducive from January 1, 2007. It does not conceal Swiss GAAP FER 14 Conjoined financial announcements of protection companies, Swiss GAAP FER 21 Accounting for kind, collective non-benefit-service organisations and Swiss GAAP FER 26 Accounting of pension intents. We duty you achieve confront this divulgation conducive in promotive you warrant the key contrarietys betwixt IFRS, US GAAP and Swiss GAAP FER. SUBJECT Accounting framework Unadorned collect or valuation IFRS US GAAP Swiss GAAP FER Generally uses unadorned collect, but impalpable possessions, species, introduce and equipment (PPE) and bombardment species may be revalued to clear esteem. Derivatives, positive other financial annalss and biological possessions are revalued to clear esteem. Bountiful retrospective impression of all IFRS able at the declarationing epoch for an stuff’s foremost IFRS financial announcements, delay some deliberational exemptions and poor mandatory crusty. Reconciliations of behoof-service or privation in deference of the laproof bound reputed beneath anterior GAAP, of equity at the end of that bound and of equity at the rouse of the highest bound confer-uponed in comparatives must be interjacent in an stuff's foremost IFRS financial announcements. No revaluations instraightforward for positive types of financial annals. Basically, unadorned collect assemblage applies. However, for distinct counterpoise quibble standings Swiss GAAP FER defines deviations from that assemblage (clear esteem) or avows choices betwixt two deliberations. First-season predeliberation insist-upons a gift of the preceding year counterpoise quibble in furnishing delay Swiss GAAP FER simply. First-season predeliberation of accounting framework First-season predeliberation of US GAAP insist-upons retrospective impression. There is no limitation to confer-upon amitys of equity or behoof-service or privation on foremost-season predeliberation of US GAAP. Financial announcements Components of financial announcements Two years’ counterpoise quibbles, avowance announcements, prevalence issue announcements, transmutes in equity and accounting policies and notes. Homogeneous to IFRS, instraightforward three years insist-upond for SEC registrants for all announcements instraightforward counterpoise quibble. Restricted accommodations in positive requisite for alien individual issuers that may propose mitigation from the three-year limitation. Entities may confer-upon either a classified or non-classified counterpoise quibble. Items on the countenance of the counterpoise quibble are generally-knownly confer-uponed in decreasing appoint of liquidity. SEC registrants should ensue SEC regulations. Homogeneous to IFRS. Counterpoise quibble Does not indicate a point frameat. A liquidity gift of possessions and liabilities is used, instead of a offer/ non-offer gift, simply when a liquidity gift provides neutralize pertinent and true instruction. Positive stint aces are confer-uponed on the countenance of the counterpoise quibble. Does not indicate a point frameat. A offer/nonoffer gift of possessions and liabilities is used presumable a liquidity gift provides neutralize pertinent and true instruction. Certain stint aces are confer-uponed on the countenance of the counterpoise quibble. A stint constituency is insist-upond. Distinct aces entertain to be known biasedly on the countenance of the counterpoise quibble or delayin the notes. Allowance announcement Confer-upon as either a unique-step or multiple-step frameat. Expenditures are confer-uponed by duty. SEC registrants should ensue SEC regulations. A stint constituency is insist-upond, either by species or by duty. Distinct aces entertain to be known biasedly on the countenance of the avowance announcement or delayin the notes. 3 SUBJECT Abnormal (significant) aces IFRS Does not use the tidings but insist-upons opposed revelation of aces that are of such extent, impingement or species that opposed revelation is compulsory to expound the operation of the stuff. Prohibited. US GAAP Homogeneous to IFRS, but identically indicative aces are confer-uponed on the countenance of the avowance announcement and known in the notes. Swiss GAAP FER Does not use the tidings disunitedional, but indicative aces are to be known biasedly. Unprecedented aces Defined as stuff twain unique and strange, and are expensive. Instraightforward goodachieve is confer-uponed as an unprecedented ace. Total wide avowance and accumulated other wide avowance are known, confer-uponed either as a opposed pristine announcement or in-one delay the avowance announcement or delay the announcement of transmutes in supplyholders’ equity. Homogeneous to IFRS instraightforward that US GAAP does not entertain a SoRIE, and SEC rules sanction the announcement to be confer-uponed either as a pristine announcement or in the notes. Defined as stuff extremely expensive in the tenor of the humdrum operations and as stuff not predictable. Not addressed. Announcement of recognised avowance and consume (SoRIE)/ Other wide avowance and announcement of accumulated other wide avowance A SoRIE can be confer-uponed as a pristine announcement, in which equablet a announcement of transmutes in distributeholders’ equity is not confer-uponed. Alternatively, it may be known biasedly delayin the pristine announcement of transmutes in distributeholders’ equity. Announcement shows cardinal vocations delay owners, the motion in accumulated behoof-service and a amity of all other elements of equity. The announcement is confer-uponed as a pristine announcement instraightforward when a SoRIE is confer-uponed. In this equablet, simply revelation in the notes applies. Trutination headings but poor restrain on space. Use straightconfident or instraightconfident classify. Statement of transmutes in distributeholders’ (stockholders’) equity Homogeneous to IFRS instraightforward SoRIE resource. Positive stint revelations of elements of equity and transmutes in equity. Prevalence issue announcements – frameat and classify Homogeneous headings to IFRS, but neutralize restricted restrain for aces interjacent in each mode. Straightconfident or instraightconfident classify used. Homogeneous to IFRS, instraightforward that bank neutralizedrafts are surrounding. Homogeneous to IFRS, but delay neutralize restrain respecting space and delay copys of nonprevalence vocations. Prevalence conceives prevalence equivalents delay maturities of three months or short from the counterpoise quibble epoch and may conceive bank neutralizedrafts. Similar to IFRS. Prevalence issue announcements – limitation of prevalence and prevalence equivalents Prevalence conceives prevalence equivalents delay maturities of three months or short from the epoch of merit and may conceive bank neutralizedrafts. No exemptions. Prevalence issue announcements – exemptions Changes in accounting device Poor exemptions for positive bombardment entities and defined behoof intents. Homogeneous to IFRS. Comparatives and preceding year are restated opposite fissure retained hues, presumable restrictedally exempted. Preceding year financial announcements entertain to be restated. The notes scarcity to detect why the accounting rule has modifiable, the species of the transmute and its financial impression. Preceding year financial announcements entertain to be restated. Explanation and requisite revelation of the possessions of faults delayin the notes. Correction of faults Comparatives are restated and, if the fault happenred anteriorly the highest preceding bound confer-uponed, the fissure counterpoises of possessions, liabilities and equity for the highest preceding bound confer-uponed are restated. Homogeneous to IFRS. 4 SUBJECT Changes in accounting estimates IFRS Reputed in avowance announcement in the offer bound and coming, if conducive. US GAAP Homogeneous to IFRS. Swiss GAAP FER Changes in accounting estimates are to be reputed in the avowance announcement in the offer bound and coming, if conducive, and to be known delayin the notes. Conjoined financial announcements Connection pattern Established on restrain, which is the strength to command the financial and unbackwardness policies. Restrain is presumed to insist when perpetrator owns, straightforwardly or distantly through subsidiaries, neutralize than one half of an stuff’s voting strength. Restrain to-boot insists when the perpetrator owns half or short of the voting strength but has lawful or curtailual hues to restrain, or de facto restrain (expensive requisite). The insistence of offerly exercisable immanent voting hues is to-boot smitten into importance. Conjoined where the stuff of the harmoniousity indicates restrain. A bipolar linkion pattern is used, which distinguishes betwixt a shifting benefit-service pattern and a voting benefit-service pattern. The shifting benefit-service pattern is discussed inferiorneath. Beneath the voting benefit-service pattern, restrain can be straightconfident or instraightconfident and may insist delay short than 50% occupation. ‘Effective restrain’, which is a homogeneous conception to de facto restrain beneath IFRS, is very expensively if eternally filled in exercitation. Restrain rinciple applies. Restrain is presumed to insist when perpetrator owns, straightforwardly or distantly through subsidiaries, neutralize than one half of an stuff’s voting strength. Restrain to-boot insists when the perpetrator owns half or short of the voting strength but has lawful or curtailual hues to restrain (e. g. distributeholder commitment curtail, preponderance in the supervisory mass/skillful-treatment mass). Special purposes stuff (SPE) Shifting benefit-service entities (VIEs) are conjoined when the stuff has a shifting benefit-service that achieve collect the preponderance of the expected privationes, take a preponderance of the expected pay, or twain. A voting benefit-service stuff, in which the stuff holds a restrainling financial benefit-service, is conjoined. If a SPE encounters the limitation of a fitted SPE (QSPE), the transferor does not consoliepoch the QSPE. Organisations delay a dissenting calling disstanding are to be pondered in the mark of linkion. This to-boot applies, as a stuff of rule, for SPEs. Limitation of consort Established on indicative govern, which is the strength to feel-a-distribute in the financial and unbackwardness device decisions; presumed if 20% or ocean benefit-service. Equity classify is used. Distribute of post-tax outcomes is shown. Detailed instruction on consorts’ possessions, liabilities, enrichment and behoof-service/privation is insist-upond. Homogeneous to IFRS, although the tidings “equity bombardment” is used instead of “associate”. Congruous to IFRS. Voting hues ;= 20% and ; 50% and restrain cannot be exercised. Gift of consort outcomes Disclosures encircling consorts Homogeneous to IFRS. Homogeneous to IFRS. Congruous to IFRS. Not addressed. However, indicative counterpoise quibble instruction of non-conjoined organisations has to be known if the esteem of those bombardments excels 20% of the clump’s equity. If consortd organisations declaration goodachieve such goodachieve achieve scarcity to be known delayin the notes. 5 SUBJECT Associate’s accounting policies IFRS Adjustments are made for linkion purposes to the consort’s policies to agree to those of the investor. Twain proportional linkion and equity classify sanctionted. Conjoined where stuff of harmoniousity indicates restrain (SIC-12 pattern). Entity’s own distributes held by an employee distribute duty are accounted for as accumulation distributes. US GAAP No settlement to accounting policies is insist-upond if the consort ensues an pleasurable resource US GAAP composition. Equity classify insist-upond instraightforward in restricted requisite. Homogeneous to IFRS instraightforward where restricted restrain applies for Employee Supply Occupation Plans (ESOPs) in SOP 93-6. Swiss GAAP FER Homogeneous to IFRS. Gift of junctisimply restrainled entities (junction ventures) Employee distribute (stock) dutys Homogeneous to IFRS. Not addressed. Calling associations Types: merits or mergers All calling associations are merits, thus the lapse classify is the simply classify of accounting that is recognized. Assets, liabilities and succor liabilities of extraneous stuff are clear esteemd. If restrain is obtained in a biased merit of a adjuvant, the bountiful clear esteem of possessions, liabilities and succor liabilities, including fragment imputable to the youngster (non-controlling) benefit-service, is chronicled on the conjoined counterpoise quibble. Goodachieve is recognised as the residual betwixt the importance compensated and the percentage of the clear esteem of the calling extraneous. Liabilities for restructuring activities are recognised simply when acquiree has an insisting bond at merit epoch. Liabilities for coming privationes or other collects expected to be incurred as a outcome of the calling association cannot be recognised. Purchase classify – succor importance Interjacent in collect of association at merit epoch if settlement is presumable and can be measured reliably. Stated at youngster’s distribute of the clear esteem of extraneous identifiable possessions, liabilities and succor liabilities. Homogeneous to IFRS. Not addressed. Lapse classify – clear esteems on merit There are restricted contrarietys to IFRS. Succor liabilities of the acquiree are recognised if, by the end of the allocation bound: • theirfairvaluecanbe stable, or • theyareprobableandcan be reasonably estimated. Specific rules insist for extraneous in-course inquiry and crop (generally consumed). Some restructuring liabilities of simply to the extraneous stuff may be recognised if restricted criteria encircling restructuring intents are met. Congruous to IFRS. Net possessions smitten neutralize in an merit are to be esteemd at clear esteems. Goodachieve is recognised as the remainder of merit collect neutralize the newly esteemd net possessions and to be cardinalised as an impalpable asset. Succor liabilities and restructuring liabilities not restrictedally addressed. Generally, not recognised until contingency is stanch and the whole is palpable. Stated at youngster’s distribute of pre-merit carrying esteem of net possessions. Not addressed. Lapse classify – youngster benefit-services at merit Not addressed, but comstanding would scarcity to be known as distribute of the linkion rules. 6 SUBJECT Lapse classify – impalpable possessions delay vague conducive lives and goodachieve IFRS Capitalised but not amortised. Goodachieve and vague-lived impalpable possessions are proofed for feebleness at smallest every-year at either the prevalence-generating individual (CGU) intente or clumps of CGUs, as conducive. US GAAP Homogeneous to IFRS, although the intente of feebleness proofing and the feebleness proof itself are opposed. Swiss GAAP FER Goodwill: Either cardinalise and amortise neutralize conducive holdence (normally five years; detect the goodachieve opposed in the counterpoise quibble or delayin the notes) or arrange straightforwardly to retained hues at merit epoch simply (in this equablet opposed revelation delayin the announcement of transmutes in equity compulsory and the possessions of a presumptive cardinalisation as well-mannered-mannered as of any feebleness and humdrum amortisation entertain to be confer-uponed delayin the notes). For impalpable possessions delay a conducive holdence that cannot be lucidly stable an amortisation bound of five years is applied, in justified equablets a bound of twenty years at the most. Purchase classify – instraightforward goodachieve The identification and configuration of acquiree’s identifiable possessions, liabilities and succor liabilities are reassessed. Any extravagance retaining behind reassessment is recognised in avowance announcement forthwith. Not restrictedally addressed. Entities elite and gratefully adduce either lapse or pooling-of-benefit-service accounting for all such vocations. Any retaining extravagance behind reassessment is used to subdue relatively the clear esteems assigned to nonoffer possessions (delay positive crusty). Any extravagance is recognised in the avowance announcement forthdelay as an unprecedented compel. Generally chronicled at ancestor collect; the use of ancestor collect or clear esteem depends on a enumeobjurgate of criteria. Not addressed, but comstanding would scarcity to be known as distribute of the linkion rules. Calling associations involving entities beneath dishonorable restrain Not addressed. Enrichment memory Enrichment memory Established on distinct criteria, which insist-upon the memory of enrichment when risks and rewards and restrain entertain been transmitted and the enrichment can be measured reliably. Homogeneous to IFRS in rule, although there is capacious elemented restrain for restricted types of vocations that may straightforward to contrarietys in exercitation. Comparable to IFRS. Allowance is the inissue of behoofs in the declarationing bound through acception of possessions and/or curtail of liabilities that acception distributeholders’ equity delayout receiving an bombardment from the distributeholders. Allowance is simply recognised if the cognate transmutes of possessions and/or liabilities may be reliably stable. Not addressed. Multiple-element preparations Enrichment memory criteria are applied to each biasedly identifiable element of a vocation to ruminate the stuff of the vocation – e. g. to dissect one vocation into the sale of movables and to the after servicing of those movables. No exalt elemented restrain insists. Arrangements delay multiple deliverables are dissectd into opposed individuals of accounting if deliverables in preparation encounter precise criteria outlined in EITF 00-21. Restricted restrain insists for software vendors delay multiple-element enrichment preparations. 7 SUBJECT Construction curtails IFRS Accounted for using percentage-of-completion (PoC) classify. Completed curtail classify is prohibited. US GAAP Homogeneous to IFRS; finally, completed curtail classify is sanctionted in expensive requisite. Swiss GAAP FER Accounted for using the PoC classify. Completed curtail classify insist-upond if prestipulations for PoC classify are not met. Consume memory Benefit-service consume Recognised on an accruals premise using the able benefit-service classify. Benefit-service incurred on borrowings to plant an asset neutralize a stout bound of season is cardinalised as distribute of the collect of the asset. Employee behoofs: pension collects – defined behoof intents Projected individual confidence classify is used to detail behoof bond and intent possessions are chronicled at clear esteem. Actuarial compels and privationes can be unlimited. If actuarial compels and privationes are recognised forthwith, they can be recognised beyond the avowance announcement. Homogeneous to IFRS. Not addressed, in exercitation homogeneous to IFRS. Benefit-service incurred on borrowings to plant substantive agricultural possessions and inventories including long-tidings curtails may be cardinalised. Swiss GAAP FER effect use of the financial announcements of the relative pension boarding, if any. An organisation has to assess every-year whether an thin behoof or thin bonds from a pension intent (and from a prop boarding) insists. Swiss GAAP FER resourcely avow the impression of an intergenerally-known accounting trutination (e. g. IFRS, US GAAP) in confer-uponing the thin impression of pension bonds; finally, entities adduceing this deliberation simply use relative prescriptions for pension bonds. Not addressed. Homogeneous to IFRS delay some contrarietys in the elemented impression. Homogeneous to IFRS but delay distinct areas of contrariety in elemented impression. Actuarial compels and privationes cannot be unlimited and are recognised in accumulated other wide avowance delay after amortisation to the avowance announcement. Employee distribute-established reimbursement vocations Consume for services lapsed is recognised established on the clear esteem of the equity awarded or the bond incurred. Effect behoofs arising from redundancies are accounted for homogeneously to restructuring stipulations. Effect satisfaction schemes are accounted for established on actuarial confer-upon esteem of behoofs. Homogeneous pattern to IFRS, although sundry areas of contrariety insist in impression. Effect behoofs Four types of tidingsination behoofs delay three opposed timing classifys for memory. Termination satisfaction schemes are accounted for as pension intents; cognate bond is adapted as either a vested behoof bond or according to the actuarial confer-upon esteem of behoofs. Effect behoofs are accounted for as stipulations and do not descend delayin the mark of Swiss GAAP FER 16 Pension behoof bonds. 8 SUBJECT Possessions Extraneous impalpable possessions IFRS US GAAP Swiss GAAP FER Capitalised if memory criteria are met; amortised neutralize conducive holdence. Intangibles assigned an vague conducive holdence are not amortised but reviewed at smallest every-year for feebleness. Revaluations are sanctionted in expensive requisite. Homogeneous to IFRS, instraightforward revaluations are not sanctionted. Capitalised if they furnish measurable economic behoofs neutralize distinct years. Amortisation neutralize conducive holdence. If the conducive holdence cannot be lucidly stable an amortisation bound of five years is applied, in justified equablets one of twenty years at the most. For impalpable possessions cognate to identicals the conducive holdence may not excel five years. Capitalisation recognized if memory criteria are met. Swiss GAAP FER to-boot declaration consumes which cannot be cardinalised (e. g. asic and applied inquiry, amid generated kindness). Congruous to IFRS. Amid generated impalpable possessions Inquiry collects are consumed as incurred. Crop collects are cardinalised and amortised simply when restricted criteria are met. Unlike IFRS, twain inquiry and crop collects are consumed as incurred, delay the disunitedion of some software and website crop collects that are cardinalised. Unadorned collect is used; revaluations are not sanctionted. Property, introduce and equipment Unadorned collect or revalued wholes are used. Regular valuations of unimpaired classes of possessions are insist-upond when revaluation deliberation is selected. Non-offer possessions are classified as held for sale if their carrying whole achieve be recovered largely through a sale vocation rather than through stable use. A non-offer asset classified as held for sale is measured at the inferior of its carrying whole and clear esteem short collects to retail. Comparative counterpoise quibble is not restated. A lease is a finance lease if stoutly all risks and rewards of occupation are transmitted. Stuff rather than frame is ponderable. Amounts due beneath finance leases are chronicled as a receivable. Gross hues arranged to concede chargeworthy objurgate of restore established on (pre-tax) net bombardment classify. Impairment is a one-step vestibule beneath IFRS and is assessed on the premise of discounted prevalence issues. If feebleness is implied, possessions are written down to excellent of clear esteem short collects to retail and esteem in use. Reversal of feebleness privationes is insist-upond in positive requisite, instraightforward for kindness. Non-offer possessions held for sale or classify clump Homogeneous to IFRS. Not addressed. Serviceable interpretations congruous to IFRS. Leases – classify Homogeneous to IFRS, but delay neutralize capacious frame-driven limitations. Congruous to IFRS. Leases – shortor accounting Homogeneous to IFRS, but delay restricted rules for leveraged leases. Not addressed. Impairment of long-lived possessions held for use Feebleness is a two-step vestibule beneath US GAAP. Firstly, feebleness is assessed on the premise of undiscounted prevalence issues. If short than carrying whole, the feebleness privation is measured as the whole by which the carrying whole excels clear esteem. Reversal of privationes is prohibited. Homogeneous to IFRS. 9 SUBJECT Bombardment species IFRS Measured at depreciated collect or clear esteem, delay transmutes in clear esteem recognised in the avowance announcement. US GAAP Treated the selfselfselfsimilar as for other properties (depreciated collect). Industry-restricted restrain applies to investor entities (for copy, bombardment entities). Swiss GAAP FER Measured at unadorned collect or chaffer esteem. Revaluation settlements on agricultural possessions kept for bombardment purposes and recognised at chaffer esteem must be recognised in the avowance announcement. Congruous to IFRS, instraightforward that to-boot FIFO and weighted mean classify to-boot LIFO and other classifys are recognized to detail collect. Inventories Carried at inferior of collect and net amplifyedisable esteem. FIFO or weighted mean classify is used to detail collect. LIFO prohibited. Reversal is insist-upond for after acception in esteem of anterior write-downs. Homogeneous to IFRS; finally, use of LIFO is sanctionted. Reversal of write-down is prohibited. Not precise. Generally unadorned collect used. Congruous to US GAAP. Biological possessions Measured at clear esteem short estimated point-of-sale collects, delay transmutes in valuation recognised in the avowance announcement. Depends on classify of bombardment – if held to manliness or loans and receivables, they are carried at amortised collect; otherwise at clear esteem. Gains/ privationes on clear esteem through behoof-service or privation classify (including trading annalss) are recognised in avowance announcement. Gains and privationes on conducive-for-sale bombardments, whilst the bombardments are tranquil held, are recognised in equity. Financial possessions are derecognised established on risks and rewards foremost; restrain is induced proof. Financial possessions – configuration Homogeneous accounting pattern to IFRS, delay some elemented contrarietys in impression. Financial possessions (“Finanzanlagen”) are to be recognised at merit esteem. Securities as distribute of offer possessions are to be esteemd at clear esteem. Receivables are esteemd at par esteem. Liabilities are normally chronicled at par esteem. Derivatives entertain to be esteemd depending on their classify (trading, hedging or other than trading or hedging). Dememory of financial possessions Significantly opposed pattern to IFRS and dememory is established on restrain. Requires lawful insularity of possessions equable in delaydrawal. Simply dememory of derivatives addressed. Liabilities Stipulations – generally-known Liabilities of to confer-upon bonds from gone-by equablets chronicled if outissue of media is presumable (defined as neutralize mitigated than not) and can be reliably estimated. Restructuring stipulations recognised if elemented frameal intent (identifying precise instruction) announced or implementation ablely begun. Homogeneous to IFRS. However, ‘probable’ is a excellent inauguration than ‘neutralize mitigated than not’. Homogeneous to IFRS. Stipulations – restructuring Memory of bond established simply on commitment to intent is prohibited. In appoint to recognise, restructuring intent has to encounter the limitation of a bond, including positive criteria respecting aspect that no transmutes achieve be made to intent or that intent achieve be delaydrawn. Generally-known memory criteria adduce to-boot for restructuring stipulations. Decisions smitten may avow recognising victuals, to-boot anteriorly elemented frameal intent is announced. 10 SUBJECT Contingencies IFRS Detect unrecognised undeveloped privationes and presumable compels. Bountiful victuals classify is used (some crusty) driven by counterpoise quibble present contrarietys. Unlimited tax possessions are recognised if reindeclaration is presumable (neutralize mitigated than not). Recognised as unlimited avowance and amortised when there is self-possessed self-confidence that the stuff achieve comply delay the stipulations resolute to them and the yields achieve be taked. Entities may offset cardinal yields opposite asset esteems. Finance leases are chronicled as possessions and bonds for coming rentals. Depreciated neutralize conducive holdence of asset. Rental reimbursements are apportioned to concede chargeworthy benefit-service objurgate on uncollected bond. Unbackwardness lease rentals are full on straight-length premise. Benefit-service arising on sale and finance leaseback is unlimited and amortised. If an unbackwardness lease commences, behoof-service memory depends on whether the vocation is at clear esteem. Substance/linkage of vocations is pondered. US GAAP Homogeneous to IFRS. Swiss GAAP FER Succor liabilities scarcity to be known delayin the notes. Congruous to IFRS. Unlimited tax possessions on present contrarietys and on tax privationes carried confident may simply be cardinalised if it is presumable that they an be amplifyedised in the coming through tit taxable behoof-services. Not addressed. Unlimited avowance taxes – generally-known vestibule Homogeneous to IFRS but delay restricted contrarietys in impression. Government yields Homogeneous to IFRS, instraightforward when stipulations are resolute to yield. In this equablet, enrichment memory is novel until such stipulations are met. Long-lived asset contributions are chronicled as enrichment in the bound taked. Homogeneous to IFRS. Restricted rules should be met to annals unbackwardness or cardinal lease. Leases – shortee accounting Congruous to IFRS. Leases – shortee accounting: sale and leaseback vocations Timing of behoof-service and privation memory depends on whether retailer relinquishes stoutly all or a less distribute of the use of the asset. Losses are forthdelay recognised. Restricted severe criteria should be pondered if the vocation involves amplifyed demesne. Impression of the US GAAP restrain may outcome in indicative contrarietys to IFRS, for copy, positive retrievable annalss are sanctionted to be classified as “mezzanine equity” (i. e. beyond of burning equity but to-boot opposed from claim). Conventional commensurebuke claim is usually recognised unimpairedly as a bond, presumable there is a wholesome transmutation mark. For finance leases, behoof-service arising on sale and finance leaseback is unlimited and amortised. Losses entertain to be recognised forthwith. Financial liabilities versus equity classify Cardinal annalss are classified, depending on stuff of issuer’s curtailual bonds, as either a bond or equity. Mandatorily retrievable inclination distributes are classified as liabilities. Not addressed. Commensurebuke claim Commensurebuke claim (agricultural enumeobjurgate of distributes for a agricultural whole of prevalence) is accounted for on rive premise, delay pay arranged betwixt equity and claim. Liabilities are derecognised when extinguished. Difference betwixt carrying whole and whole compensated is recognised in avowance announcement. Not addressed. Dememory of financial liabilities Homogeneous to IFRS. Not addressed. 11 SUBJECT Equity annalss Cardinal annalss – lapse of own distributes Derivatives and hedging Derivatives IFRS US GAAP Swiss GAAP FER Show as conclusion from equity. Homogeneous to IFRS. Homogeneous to IFRS. Derivatives not qualifying for hedge accounting are measured at clear esteem delay transmutes in clear esteem recognised in the avowance announcement. Hedge accounting is sanctionted granted that positive restraining qualifying criteria are met. Homogeneous to IFRS. However, contrarietys can commence in the elemented impression. Derivatives for trading purposes are to be recognised at clear esteem. For derivatives for hedging purposes, the selfselfselfsimilar valuation rules as for the beneathlying hedged standing can be applied instead of the valuation at clear esteems. Derivatives held for other motives than hedging or trading are to be esteemd at clear esteems or according to the inferior of collect or chaffer rule (in all equablets harmonious criteria for valuation entertain to be applied). Other accounting and declarationing topics Administrative prevalence limitation Prevalence of pristine economic environment in which stuff operates. If indicators are partial and dutyal prevalence is not patent, judgement is used to detail dutyal prevalence that most faithfully indicates economic outcomes of stuff’s operations by giving precedingity to prevalence that primaryly governs sales prices and prevalence that primaryly governs straightconfident collects of providing the movables and services anteriorly regarding the other factors. When financial announcements are confer-uponed in a prevalence other than the dutyal prevalence, possessions and liabilities are translated at extransmute objurgate at counterpoise quibble epoch. Income announcement aces are translated at extransmute objurgate at epochs of vocations, or mean objurgates if objurgates do not oscillate indicatively. Homogeneous to IFRS. Not addressed. Administrative prevalence – deeffect Homogeneous to IFRS; finally, no restricted hierarchy of factors to ponder. In exercitation, prevalence in which prevalence issues are fixed is frequently key importance. Not addressed. Gift prevalence Homogeneous to IFRS. Financial announcements in a alien prevalence that are conjoined must be converted to the prevalence of the conjoined financial announcements. Balance quibble aces are to be converted at the extransmute objurgates at the counterpoise quibble epoch (alternatively use of mean extransmute objurgate for the laproof week or for the laproof month of the calling bound). Allowance announcement and prevalence issue announcement aces may be converted at the extransmute objurgates at the counterpoise quibble epoch or at an mean extransmute objurgate for the bound. 12 SUBJECT Hues per distribute – milk-and-water IFRS IAS 33 is prescriptive encircling the act and classifys used to detail whether immanent distributes are dilutive. ‘Treasury distribute’ classify is used for distribute deliberations/ warrants. US GAAP Homogeneous in rule to IFRS, although there are contrarietys in impression. Swiss GAAP FER Not addressed. Related-aspect vocations – limitation Stable by intente of straightconfident or instraightconfident restrain, junction restrain and indicative govern of one distributey neutralize another or dishonorable restrain by another stuff. Name of the perpetrator stuff is known and, if opposed, the final restrainling distributey, regardshort of whether vocations happen. For cognate-aspect vocations, species of harmoniousity (sequable categories), whole of vocations, uncollected counterpoises, tidingss and types of vocations are known. Disclosure of satisfaction of key skillful-treatment personnel is insist-upond delayin the financial announcements. Applies to generally-known entities and entities that polish, or are in the course of filing, financial announcements delay a conductor for the purposes of issuing any annals in a generally-known chaffer. Reporting of unbackwardness constituents is established on those constituents reputed amid to stuff’s primary unbackwardness decision-maker for purposes of allocating media and assessing operation. Disclosures for unbackwardness constituents are behoof-service or privation, whole possessions and, if regularly reputed amid, liabilities. Other aces, such as apparent enrichments, intra-constituent enrichments, slander and amortisation, tax, benefit-service avowance, benefit-service consume and diverse esthetic aces, are known by constituent where such aces are interjacent in the constituent behoof-service/privation or are reputed amid. For geographical areas in which the stuff operates, enrichments and nonoffer possessions are reputed. Revelation of factors used to warrant constituents and encircling elder customers is insist-upond. Homogeneous to IFRS. Congruous to IFRS. Related-aspect vocations – revelations Similar to IFRS instraightforward that revelation of satisfaction of key skillful-treatment personnel is not insist-upond delayin the financial announcements. Detect a title, the bulk and other indicative stipulations of the vocation. The idstuff of the cognate distributey has to be known simply if this is compulsory for the discernment of the vocation. Cognate distributeies delay whom no vocations entertain been carried out during the declarationing bound do not scarcity to be known. Constituent declarationing – mark and premise of revelations Applies to SEC registrants. Premise of declarationing is homogeneous to IFRS. Geographic chaffer and calling constituent instruction compulsory if calling sectors dissent indicatively. Geographical chaffers may imply neutralize than one dominion. Constituent declarationing – revelations Homogeneous revelations to IFRS. Breakdown of net sales from movables and services by geographic and calling constituents simply. 13 SUBJECT Discontinued operations – limitation IFRS Operations and prevalence issues that can be lucidly famous for financial declarationing and reconfer-upon a opposed elder length of calling or geographical area of operations, or a adjuvant extraneous exclusively delay a purpose to resale. At a stint, a unique whole is known on countenance of avowance announcement, and exalt anatomy known in notes, for offer and preceding bounds. Financial announcements are adjusted for after equablets providing deposition of stipulations that insisted at the counterpoise quibble epoch and estheticly imposing wholes in financial announcements (adjusting equablets). Non-adjusting equablets are known. Space are implied and premise should be harmonious delay bountiful-year announcements. Frequency of declarationing (e. g. quarterly, half-year) is imposed by topical conductor or is at deliberation of stuff. US GAAP Wider limitation than IFRS. Component that is lucidly movable operationally and for financial declarationing can be a declarationable constituent, unbackwardness constituent, declarationing individual, adjuvant or asset clump. Homogeneous to IFRS. Discontinued operations are reputed as opposed length aces on countenance of avowance announcement anteriorly unprecedented aces. Homogeneous to IFRS. Swiss GAAP FER Not addressed. Discontinued operations – gift and ocean revelations Not addressed. Post-balance-quibble equablets Homogeneous to IFRS. Gap financial declarationing Homogeneous to IFRS. Additional quarterly declarationing limitations adduce for SEC registrants (retired US entities simply). Interim declarationing limitations for alien individual issuers are established on topical law and supply extransmute limitations. Preparation of an gap declaration deliberational, it capability be insist-upond by topical conductors. Curt avowance announcement and curt counterpoise quibble as a stint. Those must conceive at smallest the elder captions and subtotals that were ruminateed in the most novel annual financial announcements. Financial instruction contained in the gap declaration must be dexterous on the premise of the selfselfselfsimilar rules as the annual financial announcements. 14 Contact Daniel Suter, Partner, Basel Tel. 058 792 51 00 E-Mail: daniel. [email protected] pwc. com PricewaterhouseCoopers (www. pwc. com) provides industry-focused self-confidence, tax & lawful and advisory services to plant generally-known duty and augment esteem for its clients and their stakeholders. Neutralize than 146,000 herd in 150 countries athwart our network link their thinking, proof and solutions to amplify renewed perspectives and serviceable teaching. © 2008 PricewaterhouseCoopers. All hues backwardness. 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