Which is better chatter bookkeeping or engineering
accounting controlling 2 14
1 controlling 2 14 & How is your CV? How pleasant it is from time to time to elegantly pull yourself out of the loop with a piece of wisdom from Konrad Adenauer: "What do I care about my chatter from yesterday!" One of the exceptions is your résumé. What we have "screwed up" in our lives cannot simply be corrected, and what is unfavorable cannot be undone: we only know "cancellation" in accounting! Finishing in the CV, on the other hand, often means that the forgery of training and further education documents is increasingly observed in practice. Inapplicable gaps in the résumé are also a no-go! And it is now well established that you should not leave any negative traces on the web, especially on social media sites. In any case, your résumé is even more important today than it used to be when looking for a job. We are almost experiencing a «dossier trade». No wonder: 120 applications for an open, interesting position, for example as a wanted CEO or commercial manager of a good SME, are not uncommon. And for the triage, the first impression of the résumé is decisive in order to land on the right «beige». In the case of corporations, there is also the fact that the résumés end up somewhere in the pampas at an HR service center with often inexperienced clerks who also have no idea about the Swiss education system. So there is no harm in sticking to a few simple rules for creating a clear résumé (more than two pages are too long). It is also wise to keep a CV “in stock” at all times. Chances can come overnight and then tailor it to the advertised job. Let's start with the structure: personal information, professional experience, training and further education, language and IT skills, references (or relevant information). In the case of a professional career and training and further education, the latest should come first in the order (in descending order). But do not list every “Kürsli” except those at veb.ch. Pay attention to correct spelling, legible font and a high-quality, personable and reasonably up-to-date passport photo. Special attention should be paid to sending via: never as a word.doc, always as a pdf. In addition, one to a maximum of two additional documents (training, certificates), no more than 5 MB in total. Can you imagine what the recipient of your electronic application will do with 12 attachments? Right, you certainly won't end up on top of the beige. Make sure that the order in the curriculum vitae and the documents in the enclosure is identical. As the information in a CV is usually transferred to a database, which requires a certain date format, it makes sense to make this entry with "03/2007" and not just with the year. No matter how creative you are, don't try to be particularly original, be it graphically or textually. Also watch out internationally: different countries, different customs. Always put yourself in the recipient's shoes. The curriculum vitae is accompanied by a letter of application / motivation, which should explain why you are interested and why you are the ideal candidate. At this point or in your CV, you also state the possible starting date and possibly a salary. A résumé based on these tips will not guarantee you the dream job, but it will increase your chances of success! Herbert Mattle, President veb.ch The official body of veb.ch, the largest Swiss association for accounting, controlling and accounting
2 veb.ch largest Swiss association for accounting, controlling and accounting. Since veb.ch PO Box I 8021 Zurich Phone Fax Congratulations! Certificate for professionals in finance and accounting and the federal Diploma for experts in accounting and controlling, you will expand your skills while working in five semesters. As a recognized specialist, you benefit from a valuable protected title and excellent career prospects in demanding positions. Find out more today at veb.ch, the largest Swiss professional association for accounting, controlling and accounting with over 6400 members. As of now, 359 finance and accounting specialists are federally certified. Certificate and 85 federal dipl. Experts in accounting and controlling are indispensable. They passed their exams after a demanding apprenticeship.
3 Understanding the causes of variances Introduction of volume, price and currency reporting (MPW) A high level of transparency and quality of financial data is essential, especially for listed companies. However, this requirement also applies to the company's internal control parameters, which should be based on a determination level that is as homogeneous as possible with uniform measurement parameters. One component for covering these claims is a company-wide harmonized reporting of volume, price and currency effects as part of the deviation analysis, e.g. can be mapped at the customer, product or management unit level such as business units or segments. Suitable business models for MPW The main area of application of an MPW deviation analysis in the manufacturing industry is the business model of classic make-to-stock production. The central criterion for determining MPW effects is “comparability”. In the case of make-to-stock production, the finished products are usually Delivered to the warehouse with production-optimized batch sizes after production has been completed and sold from the warehouse upon request. This standard business can be compared very efficiently across periods and meaningful deviations can be calculated. In most cases, this ratio also applies to the after sales area with its spare parts and repair business, since similar, anonymous stock parts are used, as well as for service companies that offer recurring, standardized services. For the business models of customer order production and project or system production, an MPW is only conditionally recommendable, as it is produced once or only in small numbers at retail prices and therefore comparative MPW analyzes are of little significance. A holistic approach to the introduction of an MPW should be chosen, which is divided into four elements: 1. Definition and demarcation First, the business models existing in the company must be clearly classified. Based on this, the applicability of MPW analyzes can be identified. In order to seamlessly integrate an MPW into the company's existing reporting landscape, it is also important to use a catalog of criteria to determine at an early stage whether the company's established reporting platforms can basically cover the requirements. 2. Framework concept and guiding principles In the second step, the group and sales requirements for an MPW must first be worked out in detail in order to cover the information requirements in the company as precisely as possible. The selection of the parameters to be considered in a profitability analysis plays a decisive role here. MPW analyzes are only possible in this context (for an example see Fig. 1). Change in standard margin + KPIs Change in contribution margin + change in sales Difference in variable HK Deviation in fixed HK Martin Kreuzer, business graduate, principal / authorized signatory at the management consultancy Horváth & Partners in Munich Frank Zimmermann, MBA, graduate in business administration (FH), senior project manager / Authorized signatory at the management consultancy Horváth & Partners in Zurich For contribution margin ratios such as the standard margin shown above, in addition to currency (transaction and translation) and volume effects, cost effects for variable and fixed manufacturing costs can be determined, provided that flexible cost accounting is established as a cost accounting system in the company . The portfolio effect shows changes in sales in the customer / product combination. The determination of deviations in the functional costs, such as for research and development, on the other hand, only includes the periodic cost comparison, since no MPW effects can be analyzed here MPW effects Currency effect Volume effect Price effect Portfolio effect Variable HK Volume effect Portfolio effect Currency effect Fixed manufacturing costs Volume effect Portfolio effect Currency effect MPW in Group currency MPW in local currency 2 1 Controlling For the introduction of MPW reporting, a holistic approach should be used. Fig. 1: Overview of the MPW effects per KPI 2 14 & controlling 3
4 Controlling In addition, technical guidelines such as version comparisons for the deviation analysis in the company or special sales segments must be determined in this step. Project experience shows that only actual / actual comparisons of MPW variances in companies can be handled and afforded by the controlling departments with a reasonable amount of effort. An integration of plan or forecast figures should be avoided. 3. Controlling concept Central to the use of the MPW as a control and analysis instrument is the exact calculation of the effects. The third step is therefore to determine company-wide uniform calculation logics for MPW. So e.g. the price effect that arises from the change in the sales price of the current period to the previous period is determined by multiplying it by the quantity of the current period. The mix deviation in quantity and price ("second degree deviation") is always assigned to the price deviation as a convention. The MPW effects should be calculated throughout the organization on the lowest available master data level for customers and products. The quality of the master data has a decisive influence on the quality of the results. In order to avoid average effects on quantities and prices, aggregated levels of determination such as customer or product segments should be avoided. Furthermore, functional requirements from the group and sales point of view with regard to control and analysis dimensions must be observed, including the design of the technical data model (“star scheme”) of the data warehouse application. In order to ensure smooth provision of the MPW, an operator concept must also be drawn up, which guarantees constant maintenance and care of the system. The creation of the MPW reports should be automated and thus take place “at the push of a button”. A manual consolidation of different data sources requires a lot of effort and is usually prone to errors. Automation, on the other hand, promotes the establishment of standards for increasing the quality of reports and accelerating the provision of information to the addressees. 4. Reporting Reports can be structured differently in terms of the amount of information they contain and the presentation selected, thus fulfilling different reporting requirements. After the components of the MPW have been defined in terms of content, the reporting structures for management reporting, operational reporting and ad-hoc analysis must be defined (see Fig. 2 for an example). In the last step, the reporting is to be tailored to the roles of the report recipients by determining a technical authorization concept in order to ensure the confidentiality of the MPW deviation information in addition to the aligned content. Benefits of MPW reporting The informative value and quality of MPW reporting depend on various factors that go far beyond the simple calculation of the effects. The approach presented here for the introduction of an MPW analysis represents a tried and tested procedure for the clear definition and delimitation of quantity, price and currency effects and, once implemented, can provide concrete control impulses and enable the targeted establishment of measures in corporate control or sales. Furthermore, the uniform determination logics of the MPW allow global benchmark options for the company units under consideration. Operational MPW reports MPW management reporting 1 Operational performance reports 3 Mgmt. Report (e.g. for analyst calls) Change in sales revenue Change in contribution margin + variance in variable HK Change in standard margin + variance in fixed HK sales in period 1 Differences in sales in period 1 (Fl- (sales reporting) group reporting) MPW effects sales period 2 (sales reporting) Differences sales period 1 (FI group reporting) 2 Operational periodic reports Change period costs delta cost object cost. Deviations overhead costs Effects (M&S, G&A, R&D) Currency effects (translation effects) Missing companies Various currency conversion methods Hedging effects Other effects Fig. 2: Example of addressee-oriented MPW reporting 4 & controlling 2 14
5 Newly published: The third Swiss Controlling Standard veb.ch, the largest Swiss association for accounting, controlling and accounting, supports Swiss SMEs with the publication of practical standards. The goals are to strengthen financial leadership and competitiveness. The third standard is devoted to the topic of “reporting”. What is planned and arranged must also be measured! Here the new, third “Reporting” standard is seamlessly based on the second “Budgeting” standard. The new standard deals with reporting in the sense of internal, regular (standard) reporting and an important decision-making basis for the financial management of the company during the year. The correct and appropriate form of reporting is determined, among other things, by industry, size, type of business, life cycle or factors outside the company. The standard is specifically aimed at SMEs and is based on the company's accounting. A big thank you goes to the board representatives Herbert Mattle and Dieter Pfaff as well as the colleagues André Meier, Niklaus Meier and Markus Speck for drawing up the standard, but also to everyone who contributed valuable comments and suggestions for improvement to the consultation. Swiss Controlling Standard No. 3 Reporting In terms of content, the standard deals with the organization of the reporting process, the requirements and most important principles, content and components, the presentation and visualization as well as the delimitation of the actual situation, the deviation analysis and comments. The definition of the group of recipients of the reporting is of great importance. In larger companies, reporting at the appropriate level can make sense, in smaller or simpler situations it can be dispensed with for reasons of efficiency and cost. In order to enable “measurement” and the “target / actual comparison”, delimited, period-based interim financial statements are indispensable, with the recommendation that these should be carried out on a monthly basis. Furthermore, you should work with forecasts after the first four months at the latest. In principle, earnings management is much more important than balance sheet management. Here, it is usually sufficient to track willingness to pay and to monitor net working capital. The deviation analysis with the note: no deviation without comment is carried out for different time periods: reporting and previous year period, month and cumulative, full fiscal year and previous year, annual budget, forecast. But it is also important: "The sow does not get fat from weighing!" The reporting only fulfills its purpose if it induces the recipient to counteract any deviations from the target in good time, to exert influence and to initiate appropriate measures. If the reporting occurs promptly, it fulfills the function of an operational early warning system. The brochure can be obtained free of charge at or at veb.ch. Also as a PDF for download on Publications, Controlling. Controlling THE practical course on Controlling Standards on October 15, 2014 From the content: Basics of strategic planning Criteria for successful budgeting Budget structure: Procedure and stumbling blocks Efficient procedure in the budget process Advantages and disadvantages of budgeting methods top-down and bottom-up How to create an overall - and partial plans? Reporting requirements: what makes sense and what can be influenced? How is reporting structured? Which time periods are useful? Rules for time and material delimitations Structure and presentation of the extrapolation (forecast) How do you determine the deviations correctly? What does a comment have to contain? The building blocks of controlling in an SME The basics: simple but effective Difference between controller / controller and controlling / control Who is in charge of controlling in an SME? Further information on training and further education, courses 2 14 & controlling 5
6 The first annual financial statements according to the new RLR It's getting serious: The new Swiss accounting law must be applied from the 2015 financial year. What has veb.ch done so far to provide you with targeted information? In a first series of seminars in 2012/2013, we gave you a bird's eye view of the expected innovations. Veb.ch resolutely opposed the frequently expressed view that the changes were of a marginal nature. The second series of seminars in 2013/2014, which dealt with the most important differences to the old law, proved us right. From the end of October 2014 we will prepare you specifically for the conversion of your annual financial statements. So we will also pay special attention to the transitional provisions.Example: How do facts and processes have to be recorded that the previous law, but not the new law, allows? This question arises when activating own shares with the formation of a compulsory reserve or when activating and writing off the start-up, capital increase and organizational costs. Is it permissible to keep the accounting and accounting records of these facts and processes (under the old law)? Only during the final thesis will it become clear in detail what effects the new accounting law can have. Building on the seminars that have been carried out, we can take you one step further, true to the motto: From practice for practice. The one-day seminar on the topic So that you can correctly draw up your first balance sheet according to the new OR, we will be offering a seminar from October 2014 with the concrete steps for the changeover. You will receive information on open and controversial questions. You will learn how to proceed step by step. With practical cases, you get certainty as to where the chart of accounts needs to be adjusted and where software changes need to be taken into account; where the presentation and structure of the balance sheet, the income statement and the notes need to be changed and where tried and tested methods can be used; In which cases the recording and valuation of asset and liability items in the annual financial statements can be adopted in accordance with the old law and in which cases extraordinary adjustments must be made; which additional recording and evaluation options the new law offers; which other practice-relevant questions about the annual financial statements (recording, valuation, equity, fluctuation reserves, hidden reserves) need to be clarified. Dates: October 21, 2014 Repetitions on November 27 and December 10, 2014 Further information and registration options for training and further education.
7 Annual financial statements in foreign currency Consequences for capital protection and taxes Art. 958d para. 3 OR gives the option to prepare the annual financial statements in the "currency essential for business activity", whereby the values must also be stated in CHF. The currency conversion method remains open. However, the accounting purposes of capital protection and tax assessment are still to be fulfilled in CHF. The article shows the consequences for currency conversion and how the problem can be solved in practice. Starting position Swiss companies with a foreign connection often keep their books in the currency of the economic area in which they are primarily active. The old OR did not regulate the currency of current bookkeeping, but required all those responsible for bookkeeping to prepare their annual accounts in "local currency". Art. 958d para. 3 OR now grants the option of preparing the accounts in a foreign currency if this is the "currency essential for business activity", the values are also given in the local currency (CHF) and the exchange rates used are in In the appendix and explained if necessary. An analogous option applies to the current bookkeeping, whereby no additional CHF information is required there (Art. 957a Para. 4 OR). Additional CHF values when invoicing in a foreign currency All in all, companies have the options shown in the table that affect the choice of both the accounting currency and the presentation currency. If the CHF is the functional currency, bookkeeping and presentation in CHF are mandatory. Additional CHF IDs require that the foreign currency IDs are converted into CHF using certain exchange rates. “The exchange rates used must be disclosed in the appendix and, if necessary, explained” (Art. 958d Paragraph 3 OR). The legal consequences with regard to capital protection and tax assessment were not properly considered. Capital protection based on an ancillary calculation For AG, GmbH and foundation there is a nominal minimum capital by law, the so-called share capital (share, share or foundation capital), which is intended to serve as a liability substrate and always appears as such in the balance sheet (Art. 959a Para. 2 no. 3 letter a OR). Cooperatives can provide for the creation of a share capital in their articles of association. The denomination of the share capital in CHF means that capital protection must be measured in CHF: Resolutions of the responsible bodies, insofar as they affect items of equity, must all be expressed in CHF. The same applies to the measures taken in the event of loss of capital and over-indebtedness. For these purposes, the foreign currency ID must be converted into CHF. If you now use the additional CHF certificates for capital protection, nothing changes in the currency conversion compared to the old OR: It must still be carried out in such a way that the OR valuation rules in CHF are complied with (time reference method). A linear transformation using the closing rate method would be incompatible with these rules. Dieter Pfaff, Dr. rer. pol., Professor of Corporate Accounting and Controlling, Director of the Institute for Business Administration at the University of Zurich, Vice President veb.ch Stephan Glanz, Dr. oec. HSG, dipl. Auditor, Managing Director of Dr. Glanz & Partner GmbH, Kilchberg, partner of the Center of Excellence in Accounting, Zurich If you understand the additional CHF IDs as pro-forma information, they can be created using any method that is constantly being used. Here it is necessary to follow the tax regulations. However, the capital protection must then be measured using an additional CHF calculation. It would be conceptually correct to convert using the time reference method. However, due to the necessary shadow calculations, this can be disproportionately complex. In order to comply with the OR valuation rules equally, but in a very simple way, the Swiss Manual of Auditing (HWP) 2009 edition recommends a different approach, namely the combination of simple exchange rate conversion and "imparity" recording of conversion differences on balance as follows : Assets and liabilities at the closing rate; Income statement at the annual average rate; Equity at historical rates; Equity movements (meaning: for business activity accounting option Presentation Additional key currency information Foreign currency A FW FW CHF (FW) B CHF FW CHF C FW CHF n / a D CHF CHF n / a CHF CHF CHF n / a Accounting 2 14 & controlling 7
8 accounting for the reporting year) at the annual average rate; Recognition of the translation differences affecting net income (“provision” for unrealized profits). In this way, hidden reserves are effectively created in order to «neutralize» the fictitious conversion gain, whereas the fictitious conversion loss is taken into account. BGE 136 II 88 has therefore rejected the method. However, it is sufficient for capital protection by ancillary calculation, although hidden reserves are created. Should there be a loss of capital, it might be worthwhile to use the “clean” time reference method: contrary to the result of the HWP method, there might not yet have been any capital loss in CHF. In order not to leave the addressees in the dark about this capital maintenance, it is advisable to provide information in the appendix analogous to the information relating to the additional CHF statements, plus the CHF equity determined in the ancillary calculation. With a view to acceptance by the auditor, the ancillary invoice must be documented. Denomination of the share capital in foreign currency The most cost-effective solution for companies would be to abolish the mandatory denomination of the share capital entered in the commercial register in CHF as part of the ongoing revision of stock corporation law. The share capital should now be denominated in the "currency essential for business activity", whereby EUR, USD and any freely convertible currency of an EU member state would come into question. On this basis, the capital protection would be measured in the currency in which the annual financial statements are prepared. The additional CHF certificates in accordance with Art. 958d Paragraph 3 OR can be generated in accordance with tax law with a minimum of effort using the closing rate method. Assessment of direct taxes As a rule, taxes on profit and capital, including those of companies with a foreign functional currency, are assessed in CHF. The most practical way to prepare the tax balance sheet would therefore be to make the additional CHF statements in accordance with tax regulations: The closing rate method is in any case necessary if the capital protection is measured on the basis of an ancillary calculation. Alternatively, it remains with a supplement to the trade balance; then nothing changes compared to the old OR. According to BGE 136 II 88, it is no longer possible to prove tax factors and capital protection simultaneously in CHF with the annual financial statements. If the CHF denomination of the share capital were to be abolished (see above), it would be ideal if the DBG and StHG were supplemented so that direct taxes are also assessed in this currency when the annual accounts are drawn up in "foreign currencies that are essential for business activities". Not only would the tax relevance of the trade balance be restored; The currency conversion of the annual accounts for the purpose of tax assessment would also be omitted. Since the often considerable period of time until the final assessment (postnumerando taxation) creates an exchange rate risk, the tax authorities would set uniform cut-off rates at which the amounts of profit and capital taxes would be converted into CHF and invoiced. Conclusion If the (functional) currency “essential for business operations” is a foreign currency, different requirements result according to Art. 958d Para. 3 OR, depending on which of the above options a company chooses: Option A: Bookkeeping and presentation are in the functional currency . The CHF values, which must also be shown here, are most easily determined in accordance with tax regulations (closing rate method). The capital protection in CHF can be measured in an additional calculation using the time reference method. With a view to practicability and acceptance by the auditor, it is advisable to use the HWP method in the ancillary calculation. Although this is conceptually vulnerable, it is sufficient for capital protection in CHF. The “clean” time reference method is recommended for companies with a suspected loss of capital. Option B: If, as an exception, the accounting is still in CHF, the raw financial statements are converted into the functional currency in which they are presented using the time reference method. The additional CHF values are determined as with option A (closing rate method). The capital protection is measured directly on the basis of the raw CHF financial statements. Option C: Here the accounting is done in the functional currency, but the presentation is in CHF. It also serves to measure the capital protection, which is why the rough financial statements must be converted into CHF using the time reference method. A supplementary statement is required for taxes. Option D: Bookkeeping and presentation are in CHF, which means that the requirements for both capital protection and tax assessment are met from the outset. Depending on whether the books are kept in the functional currency (A and C) or in CHF (B and D), different tax factors result despite the identical situation, which violates the uniformity of taxation and would have to be eliminated by changing the law. The preparation of the annual financial statements in CHF, despite the foreign functional currency (C and D), also contradicts the economic approach and impairs the comparability of companies to companies. Note For details and literature, see Glanz Stephan / Pfaff Dieter, Capital Protection and Tax Assessment for Accounting in Foreign Currency (Art. 958d Paragraph 3 OR), in: ASA 82 (2013/2014), S & controlling 2 14
9 Application questions on Swiss GAAP FER 31 “Additional recommendations for listed companies” Of 57 companies listed on the Domestic Standard segment of the SIX Swiss Exchange (excluding banks) with annual accounts based on Swiss GAAP FER, eight already have the new one in their annual accounts for the 2013 financial year Swiss GAAP FER 31 “Supplementary technical recommendation for listed companies” implemented. The Swiss GAAP FER commission selected January 1, 2015 as the date for this, so that any adjustments can be made without time pressure. Earlier application is of course permitted. Swiss GAAP FER 31 “Supplementary technical recommendation for listed companies” is a standard that primarily addresses questions of disclosure: Segment reporting The industrial companies show the type of segments shown in Fig. 1: Fig. 1 is to be interpreted as follows: Three of the five companies that organize their segments according to business areas reveal three segments, a company two segments and a company one segment. The latter argues that all internally reported units can be summarized as one segment due to the economic similarity, the uniform strategy and the same products / services. Overall, no company has yet made use of the exemption clause to forego the disclosure of segment results. Daniel Suter, Dr. oec. publ., federal dipl. Auditor and licensed auditor for the Principality of Liechtenstein, partner PricewaterhouseCoopers AG, Münchenstein. He is a member of the specialist commission and the specialist committee of Swiss GAAP FER and lecturer at the University of Zurich for auditing, internal and external auditing. Accounting Disclosed business areas Earnings per participation right Income tax Liabilities of a financial nature Segment reporting Interim reporting Only the regulations regarding initial application and share-related remuneration also affect accounting and valuation. In this article, individual aspects from the implementation of Swiss GAAP FER 31 are highlighted. One of the eight companies applying Swiss GAAP FER 31 early is a real estate company that has to take into account the special disclosure requirements of the SIX Swiss Exchange (Art. 81 of the Listing Rules, SIX Exchange Regulation 02/14, in particular Scheme C relating to real estate companies, SIX Exchange Regulation 07/09). The other seven companies are industrial companies. Specific questions regarding the application of Swiss GAAP FER 31 arose primarily with regard to the presentation of segment reporting and income taxes. Number of disclosed number of companies, number of companies, segments that align their segments according to their segments according to geographical markets Figure 1: Number of reported segments and number of companies Income taxes Swiss GAAP FER 31 requires the average applicable tax rate weighted on the basis of the ordinary result To be disclosed in the attachment. Furthermore, the influence of changes in loss carryforwards on income taxes must be quantified and explained. According to Swiss GAAP FER 3 “Presentation and structure”, the ordinary result consists of the operating and financial results. External or extraordinary results are not included. If these latter results are not taxed in the same way as the ordinary result, the question of disclosure arises (see Fig. 2). Result Presentation of the applicable tax rate CHF million. Variant 1 Variant 2 Ordinary result% Non-operating and extraordinary result% Profit before income taxes% 20.2% Figure 2: Disclosure of weighted average applicable tax rates 2 14 & controlling 9
10 Accounting According to the wording of the provisions, variant 1 is to be used. Many corporate accounts contain legal entities that report losses. How is the weighted average applicable tax rate to be calculated in these cases (see Fig. 3 and 4). The disclosure of a tax rate of 15.8% does not seem plausible in view of the detailed information that is not to be disclosed (see Fig. 3). If the tax consequences on the loss of subsidiary D are not recorded because, for example, their realization is too uncertain, this effect must be quantified and explained (see Fig. 4). Swiss GAAP FER 31 does not require a complete reconciliation, but rather the disclosure of the influence of changes in loss carryforwards. However, the reported tax rate of 34.8% (see Fig. 4) does not seem plausible either. A further disclosure not required by Swiss GAAP FER could bring more transparency (see Fig. 5). In addition to the ordinary result, three of the eight companies also have other earnings components that were included in the presentation of the weighted average applicable tax rate. If the tax rates for these earnings components are the same as for the ordinary earnings, there are no different amounts; A reference to this fact is recommended for identification. A company indicates a wide range of applicable tax rates and calculates the tax amount on a total loss. The reconciliation shows the influence of tax losses, the consequences of which are not recorded. All companies create a complete reconciliation calculation, which is not required, but gives a lot more information. Three companies disclose the calculations in percentages and the other five in amounts. Conclusion Most of the first-time adopters of Swiss GAAP FER 31 are companies that have recently changed their accounting standards. Since they come from the International Financial Reporting Standards, disclosure issues such as segment reporting and the impact of tax losses apparently play a rather subordinate role.
11 Czech entrepreneurs increasingly demand falsification of financial statements Professional colleagues from the Czech Republic report an alarming trend: According to a recent survey by the Czech Chamber of Certified Accountants, “customers” are increasingly asking for dubious measures to improve the balance sheet. The development of the last three years is particularly striking. The Chamber of Certified Accountants in the Czech Republic regularly surveys its members on the subject of “creative accounting”. The latest result: the morale and sense of responsibility of Czech entrepreneurs are currently eroding in step with the economic downturn. Since February 2013 alone, the proportion of accountants who were confronted with the desire to beautify or falsify the balance sheet has risen from 21% to almost 27%. 26.5% are supposed to manipulate More than a quarter of accountants under pressure? Our Czech colleagues have converted and extrapolated. They show that up to 250,000 companies could have manipulated their financial statements. According to the association, this trend is not entirely new. According to statistics, however, the results of the survey have been getting worse and worse for several years. Different sense of guilt among clients This year the chamber expanded its survey. They now wanted to find out whether the company management, according to the survey participants, knew what consequences a falsification of the balance sheet could have, including the consequences under criminal law. 51% of the accountants surveyed believe that the entrepreneurs and / or board members are unlikely to be aware of the negative consequences. 29% of the respondents think that the managing directors and board members know what they are asking. Libor Vašek, President of the Chamber, commented: “If 29% are aware of the consequences of these actions, it means that they are negligently or deliberately wrong. Such an act is judged very strictly according to the Czech civil law as well as the new commercial law. Also, no D&O insurance (Insurance for Directors and Officers) will cover the damage of such an act or take responsibility if damage occurs to the state, creditors or investors. We are very concerned that the situation will continue to deteriorate. " What manipulations are required? 215 members of the Chamber took part in the survey; Experts in accounting, tax law and business administration. Your feedback shows: 92% of the manipulative interventions concern «the adjustment of the profit» (previous year: «only» 78.9%). But the level of indebtedness is also falsified. 18% of the manipulations this year account for the adjustment of the debt, which is roughly the same as in the previous year. Outwardly, in these cases, a lower debt that does not correspond to the truth is shown. Extrapolated, companies based in the Czech Republic could be affected: a not inconsiderable risk for banks! Further information: Vítezslav Horák Weber ˇ Shandwick, Account Director T: Accounting Did customers or employers ask you to take any action during your final thesis to improve the results? 80% 79% 74% 20% 21% 27% year 2012 year 2013 year 2014 yes no 2 14 & controlling 11
12 Invoicing start August 21, 2014 “Payroll Manager” Controller Akademie AG l Altstetterstrasse 124 l 8048 Zurich Telephone l Contents: Wages from the perspective of employers and employees, wage-relevant social insurance, wage administration and its labor law requirements, wage accounting and year-end processing For: HR -Specialists, graduates from HFW or FH, people with qualifications at the level of clerks and certificates Advantage: Lessons for specialized know-how in every area of payroll processing Duration: 11 afternoons Graduation: Register now! The Controller Akademie 12 is a & controlling institution from 2 14
13 On the retirement of Prof. Dr. Conrad Meyer On May 27, 2014, Conrad Meyer, Professor of Business Administration, held his farewell lecture at the University of Zurich in front of 400 enthusiastic listeners from science, business, politics and society as well as interested students Honoring accounting in teaching, research and practice. * Accounting Conrad Meyer was born and raised in Zurich. His career was determined from the start. After four years at the Freudenberg Business School in Zurich, he studied economics at the Law and Political Science Faculty of the University of Zurich, graduating at the top of his class, and two years later he became an assistant to Ernst Kilgus at the Institute for Swiss Banking and then did his doctorate with a thesis on the "Development and implementation of a planning, budgeting and cost accounting system at the Swiss National Bank". In his habilitation thesis, which he also submitted to the University of Zurich, he remained loyal to the banking industry, but now turned to financial reporting (accounting). After further positions in his career as a private lecturer, assistant professor and associate professor for business administration, he was full professor and director of the Institute for Accounting and Controlling from 1991 to 2010. Not least because of his commitment, the former commercial science seminar, made famous by the creation of the first chair for business administration at a German-speaking university, was successfully transformed into a modern teaching and research institute that is up to today's requirements. The research activity and the journalistic work of Conrad Meyer are mainly characterized by work in the fields of accounting and accounting. The aim of his publications has always been to understand business administration as an applied science and to provide assistance to business practice without losing theoretical precision. The introduction of new generations of specialists to the increasingly complex subject of accounting and accounting has always been of great importance and has a lasting influence on his interests and his work. In terms of content, Conrad Meyer's publications can essentially be assigned to three areas: firstly, the preparation of the balance sheet, in particular the bank balance sheet, and its analysis, secondly group accounting, and thirdly, the specialist recommendations for accounting for Swiss SMEs. Meyer's post-doctoral thesis “The bank balance sheet as a financial management instrument with special consideration of regulatory provisions at home and abroad” from 1985, numerous articles on developments in the bank, on balance sheet policy, financial statements analysis and company valuation as well as articles in the money, banking and financial market lexicon of the Switzerland deal with the first area. He was way ahead of his time, especially when it came to the postulation of an active management of the bank balance sheet in terms of risk-adjusted asset and liability management, and, as the recent turbulence in the financial markets shows, his work has lost none of its topicality. The contributions to corporate accounting are innumerable and highly relevant for Swiss practice. As one of the many highlights of this commitment, the publication “Consolidated Financial Statements: Meaningful Consolidated Financial Statements in Consideration of National and International Accounting Standards” appeared in the publication series of the Treuhand Chamber in 2007. Through his persistent promotion of transparent and consistent, but not too complex, group accounting for medium-sized groups for over two decades, Conrad Meyer has made a significant contribution to improving the principles of proper group accounting in accordance with the Code of Obligations and Swiss GAAP FER. He was thus an important pioneer for a solution away from obscure "Alpine or Swiss accounting" to one that was understood as a central information and management tool. Birthday of Conrad Meyer at the publishing house skv 2009, written by Luzi Hail (Wharton School, University of Pennsylvania) and Dieter Pfaff (University of Zurich) & controlling 13
14 Accounting financial reporting that takes into account the global requirements of today's economy. The same applies to its influence on the individual financial statements of Swiss stock corporations. Thanks to their modular structure, the new Swiss GAAP FER, which has been in force since 2007 under his aegis, represent a tailor-made concept for annual accounts for both smaller and larger organizations, which gives a true and fair view of the assets, financial and earnings position ( “True and fair view”). If a university professor, instead of hiding in an ivory tower, excels as Conrad Meyer does in the scientific development of an idea and its subsequent transfer into business practice, then he has to have considerable influence, even if he himself may assess his contribution to be much more modest attributable to law, accounting standards and corporate practice; The reality of group accounting in Swiss companies that are not listed on the stock exchange is not least the result of his decades of work. ten has. The printed photo shows this year's award ceremony. Many of his students were downright infected by Conrad Meyer's enthusiasm for the “accounting virus”. In addition to his academic and teaching activities as a full professor, Conrad Meyer holds a number of honorable offices, holds various board memberships and is a member of prestigious national and international scientific associations. Particularly noteworthy are his positions as President of the Expert Commission for Accounting Recommendations (Swiss GAAP FER) and, until 2013, as President of the SIX Swiss Exchange Expert Group on Accounting Issues. His interest in teaching and training issues as well as his flair for management tasks was also evident in the years 1996 to 2002, when he was Vice-Rector of the University of Zurich and head of the “uni 2000” reform project, including the commissions on “Organizational and Management Structure” and the “Global budget for the University of Zurich” presided over and successfully helped establish the university internationally as a recognized and independent teaching and research institution. Last but not least, the numerous training and consulting mandates are an expression of his tireless work in the service of science, teaching and service. Conrad Meyer has also always been happy to get involved with veb.ch, be it as a speaker on consolidated financial statements and Swiss GAAP FER or as spiritus rector of the lecture series organized with him at the University of Zurich in the 1990s; the presentations held there were published in a veb.ch-owned series by the main publisher. In all of the above functions as well as with his journalistic work, Conrad Meyer has contributed to the promotion of research and practice in the field of accounting and financial reporting in companies for many years. Veb.ch would like to thank him very warmly for this achievement, in particular for his services in training and further education and his publications. Herbert Mattle, President veb.ch Prof. Dr. Dieter Pfaff, Vice President of veb.ch Conrad Meyer's presence in the lecture hall should not go unmentioned. Whether twenty or over a thousand listeners (spread over several rooms with simultaneous transmission via telecommunications services), hardly anyone can convey the apparently dry subject of "accounting" as vividly and vividly as he can. This always includes a pinch of humor and a reference to the latest news, and suddenly complex topics become comprehensible for the students and provided with exciting content. Through his tireless teaching activities, be it at the University of Zurich, the ETH, the Swiss Academy for Auditing, the Swiss Finance Institute and in various seminars and training events, Conrad Meyer has repeatedly managed to bring his own enthusiasm for accounting to the Transfer audience. An expression of this unique talent is the award with the «golden sponge», which Conrad Meyer has received almost continuously in recent years (since 2008) as the best lecturer of a semester from the Fachverein Ökonomie. In English, please! Understand technical terms and use them correctly Monday, November 10th until 12.00 am Without English technical terms, finance and accounting is also possible today. In this course you will receive practical explanations based on English annual accounts and business reports. The language of instruction is German. Further information and the option to register for training and further education, House of Accounting Talacker 34 PO Box 1262, 8021 Zurich Telephone & controlling 2 14
15 Swiss SME chart of accounts, French and Italian For the standard work on Swiss accounting, it is essential that it is also available in the other national languages. Be it for practice or for training. The French edition can now be ordered from Editions Loisirs et Pédagogie. The Italian edition should follow in the summer. Grazie in Ticino and Merci in French-speaking Switzerland to everyone who contributed! Interesting questions about the Swiss SME chart of accounts are asked via. Co-author Herbert Mattle is happy to answer two of the so-called employer contribution reserve, which embodies prepaid employer contributions for future financial years to the registered pension fund, at this point; you can find further questions and answers under SME chart of accounts. Please note that the answers are the personal opinion of Herbert Mattle and that the practice of the tax authorities can change at any time, especially in the tax area. We are also happy to receive your suggestions and tips. Own work and own consumption (group 37) and value added tax Question: According to the own deliberations of the authors of the teaching material and after consultation with VAT experts, the own consumption of goods etc. is not part of the income. It is a reduction in effort. The following reasons speak for this: Self-consumption is booked at the cost price and is not part of the sales revenue. Self-consumption results in an input tax correction (account 1174) and not a sales tax (debt). Other self-consumption items are also booked as cost reductions, e.g. Account 6270 private share of vehicle expenses, account 6560 private share of administrative expenses. The authors will give the account number 4907 to the account for own consumption of goods, materials and services in our book. Answer: In the chart of accounts, personal consumption / own work is provided as a sales account. This reasoning is correct. As an independent taxable entity, VAT recognizes all other legal forms with the exception of sole proprietorship: i.e. corporations, cooperatives, associations, foundations, general partnerships and simple companies. If the legal forms mentioned provide their own services or services for their shareholders (e.g. a shareholder purchases a PC from his company for himself), this is a service between the company as an independent subject and the shareholder as a further, second subject. For this exchange of services, VAT demands the third-party price, i.e. a sales price (Art. 24 Paragraph 2 VAT Act). This own consumption or this own contribution must therefore be listed in account group 37 and sales tax is owed. This discussion is also common from the point of view of other types of tax (e.g. direct federal tax). The posting via account group 49 is materially incorrect. If, on the other hand, a sole proprietorship has the same situation (owner uses a PC for himself), it is a question of own consumption, which must always be booked as an input tax correction. There is no exchange of services between the sole proprietorship and the owner. And because it is the same subject (sole proprietorship and owner is the same person), there is no need for a separate accounting account. The posting must be reversed as a cancellation, which is why it is wrong to set this reference under account group 49. This transaction does not represent a price reduction for the sole proprietorship. Rather, it is an expense that, due to the preponderance method, which applies to the legal form of the sole proprietorship, must not be recorded in the accounting. Thus, the only correct posting is the cancellation of the original entry. Employer contribution reserve Several inquiries have been received about the employer reserve. Perhaps the comment in the Swiss SME chart of accounts on page 113 under “130 Active accruals and deferrals” is a bit confusing: Swiss SME chart of accounts 2 14 controlling 15 &
16 Swiss chart of accounts for SMEs. In the year in which the reserve is formed, the outflow is therefore posted to the cash and cash equivalents in account 1302 “Employer reserve”. In the year in which reserves are used (instead of renewed contribution payments), the corresponding amount is booked out here again, debiting pension expenses (class 5, “Personnel expenses”). This means that the payment process is correctly timed. If the employer contribution reserve is not specifically intended to be used, a compromise solution can be found: Because the item can be interpreted as an advance payment, it is then assigned to the financial assets (group 140).The explanations given above relate to the case in which the employer contribution reserve is booked. However, posting is still not required and non-posting seems to be common practice. Even under the new accounting law, there does not seem to be an unconditional accounting obligation, as the later availability is subject to uncertainty factors (including use in the event of underfunding, return inadmissible). At most, an activation would be possible with a simultaneous value adjustment. Important: The employer's contributions to the pension fund and the contributions to the employer's contribution reserves are considered business expenses for direct taxes, but are limited to five times the annual contributions to be made by the employer company in accordance with the pension fund's regulations. You can find the relevant information from the tax offices on the Internet for the details (e.g. the following procedure seems to be sensible: 1. Creation and release of employer contribution reserves for extraordinary expenses or income, assuming materiality. and the corresponding margins not “manipulated”. 2. Mention of the amount and the change compared to the previous year of the employer contribution reserve in the appendix. This information is important for assessing the company's hidden reserves and their possible statutory disclosure. Another note: When booking the employer contribution reserve Interest would also have to be booked as an asset, but corrected again at the same time, since this income is not taxable. Herbert Mattle's practical tip: Do not book employer contribution reserve Save taxes in good years! he location in vibrant Zurich In the “Kaufleuten” building, in a prime location in the middle of Zurich, veb.ch rents newly renovated and very comfortably furnished rooms. A spacious lounge and free Wi-Fi access complete the offer. Whether a single day or a longer duration: everything is possible. Are you looking for a comfortable training room with the most modern means of communication for 40 people? Or a representative meeting room for a maximum of 12 people? Interested? Do not hesitate and give us a call: Telephone veb.ch Talacker 34 PO Box Zurich 16 controlling 2 14 &
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