SIX Exchange Regulation AG (SER) has submitted a request for a sanction to the Sanctions Commission of SIX Group against The Native SA concerning alleged violations of the applicable accounting standards Swiss GAAP FER in the 2017 annual and 2018 interim financial statements.
After completion of its investigation, SER has concluded that the 2017 annual and 2018 interim Swiss GAAP FER financial statements of The Native SA contain material misstatements.
The alleged deficiency in the 2017 annual financial statements refers to an incorrectly performed impairment test for a minority interest. As a consequence, this interest has been materially overstated in the balance sheet and a material impairment expense was missing in the income statement of the 2017 annual Swiss GAAP FER financial statements.
Furthermore, The Native SA has consolidated this minority investment starting on 1 January 2018, even though control allegedly did not exist. Therefore, the 2018 interim Swiss GAAP FER financial statements were materially misstated.
The Native SA has made retrospective adjustments (‚restatements‘) for both matters in its 2018 annual Swiss GAAP FER financial statements and has disclosed them as corrections of errors.
No information will be provided while the sanction proceedings are ongoing. SER will inform the public about the outcome of the sanction proceedings.
