The semi-annual report for 2004 of Cicorel Holding SA (Cicorel) was not prepared in full accordance with the Listing Rules. Cicorel consolidated two acquired companies retroactively with effect from 1 January 2004 rather than as of the actual assumption of control on 18 May 2004. Under the relevant provisions of the International Financial Reporting Standards (IFRS), the earnings and expenditures of acquired companies may only be included from the time of actual assumption of control.
Moreover, in the cash flow statement included in its semi-annual report for 2004, Cicorel reported a cash inflow of CHF 26.6 million due to a capital increase. The actual cash inflow amounted to no more than CHF 8.4 million. The difference is attributable to payments in kind from the two acquired subsidiaries, which constitute non-liquidity-related capital increases. Under IFRS, acquisitions through share swaps are "non-cash transactions" and therefore must not be included in cash flow statements.
The company’s portrayal of the corporate takeovers in its semi-annual report for 2004 constitutes a breach of the provisions of the Listing Rules. The Executive Committee of the Admission Board of the SWX has therefore issued a reprimand with publication against Cicorel.
Periodic reporting and compliance with applicable accounting provisions form an integral part of the information that contributes to transparent trading in accordance with the provisions of the Stock Exchange Act and the Listing Rules. One of the tasks of the SWX is to enforce the transparency provisions that apply to issuers.
For information on accounting standards, please visit http://www.swx.com/admission/being_public/accounting_en.html
Previous sanctions imposed by the SWX for irregularities in the area of accounting are available at: http://www.swx.com/admission/being_public/sanctions/accounting_en.html
