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SIX Exchange Regulation has fined Bergbahnen Engelberg-Trübsee-Titlis AG as a result of errors in the company’s 2009/2010 half-year financial statements. The sanction pertains to a CHF 5.9 million overstatement of cash that arose from failings in the company’s internal control system.
Bergbahnen Engelberg-Trübsee-Titlis AG, which is listed on SIX Swiss Exchange, significantly overstated shareholders’ equity in its 2009/2010 half-year financial statements by presenting cash in an amount that was CHF 5.9 million too high. If accounted for properly, the corresponding amount should have been impaired, which would have reduced the company’s reported pre-tax net income from CHF 4.8 million to a pre-tax net loss of CHF 1.1 million.
Thus within the framework of a sanction notice, SIX Exchange Regulation has imposed a fine of CHF 5,000 on Bergbahnen Engelberg-Trübsee-Titlis AG. In its annual financial statements 2009/2010, the company will recognize an impairment on cash and, in its 2010/2011 half-year financial statements, disclose and restate the error for the comparable period.
Periodic financial reporting constitutes a part of the information that contributes to a properly functioning market in keeping with the stipulations of the Stock Exchange Act and the Listing Rules. In this connection, issuers must comply with the applicable financial reporting rules. One of the tasks of SIX Exchange Regulation is to ensure enforcement of the transparency requirements imposed on issuers by the Regulatory Board.
Information on financial reporting can be found at:http://www.six-exchange-regulation.com/obligations/financial_reporting_en.html
Previous sanctions in the area of financial reporting can be found at:
http://www.six-exchange-regulation.com/enforcement/media_releases/sanctions/financial_reporting_en.html
