Structuring assets

All legal entities (including public limited companies and limited liability companies) are obliged to keep proper accounts in accordance with the accounting law in the Swiss Code of Obligations. Sole proprietorships and partnerships only have to do this if their turnover is at least CHF 500,000; before that, a record of income and expenditure and all assets is sufficient.

According to Swiss accounting law, assets must be recognized at acquisition or production cost and this value may not, in principle, be exceeded. On the other hand, wear and tear due to use and age must be taken into account through depreciation or value adjustments.

The annual financial statements consist of the balance sheet, income statement and notes. The balance sheet shows all assets, liabilities and equity. The annual result is derived from the income statement and the notes contain additional information that serves to provide a better understanding of the balance sheet and income statement.