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SIX Exchange Regulation has imposed a fine on Swissmetal Holding Ltd as a result of errors in the preparation of the company’s 2008 annual financial statements under Swiss GAAP FER.
Swissmetal Holding Ltd, which is listed on SIX Swiss Exchange under the Domestic Standard, committed various violations of the accounting provisions as prescribed by the Listing Rules in the Swiss GAAP FER-based preparation of its 2008 annual financial statements. Swiss GAAP FER principles, which are issued by Switzerland’s Commission for Accounting and Reporting Recommendations, are recognised in the Listing Rules as applicable accounting principles for issuers listed on SIX Swiss Exchange under the Domestic Standard.
SIX Exchange Regulation has concluded that Swissmetal Holding Ltd, in its 2008 annual financial statements, violated the rules of Swiss GAAP FER 17 "Inventories", Swiss GAAP FER 20 "Impairment", the Swiss GAAP FER Framework, Swiss GAAP FER 24 "Equity" and Swiss GAAP FER 30 "Consolidated financial statements". In this connection, inventories were valued at an excessive level, the required accounting for impairments on intangible and fixed assets was not undertaken, a change in the estimate of restructuring provisions as well as foreign currency translation losses on company loans were not booked to the income statement, and the net sales of the company’s geographic markets and business segments were not disclosed.
Under consideration of the gravity of the breach, the degree of fault, as well as the fact that the company has already been sanctioned once during the past three years, SIX Exchange Regulation in its sanction notification has imposed a fine of CHF 10,000 on Swissmetal Holding Ltd. The company did not challenge the sanction notification.
Periodic financial reporting in compliance with applicable financial reporting regulations is part of the information that contributes to a properly functioning market, as required under the Swiss Stock Exchange Act and the Listing Rules. One of the tasks of SIX Exchange Regulation is to ensure that transparency rules imposed on issuers by the Regulatory Board are enforced.
Information on financial reporting regulations can be found at:
http://www.six-exchange-regulation.com/duties/financial_reporting/provisions_en.html
Previous sanction notifications and decisions in connection with financial reporting can be found at:
http://www.six-exchange-regulation.com/enforcement/sanction_decisions/financial_reporting_en.html
