Finance

ISO 20022 harmonizes global financial messaging, improves communication between banks, and introduces uniform standards in Switzerland. By 2020, all changes will be implemented, with Switzerland adapting its financial processes to SEPA and introducing new systems.

Intangible assets must be activated according to Swiss Obligation Law since 2015 if they meet certain criteria. Costs for formation and capital increases are not activatable and must be immediately recognized as expenses.

The equity of a company is charged with imputed interest in accounting to simulate comparable conditions with an investment in the capital market. Imputed interest is not part of the profit and loss statement, but is essential for internal calculations such as cost accounting and investment decisions.

A reduction in share capital can be carried out with or without outflow of funds, to correct overcapitalization or to rectify an underbalance. The implementation requires legal steps, such as confirmation by an audit expert and compliance with a creditor protection period.

Long-term financial liabilities are due over a year and primarily include bonds and secured loans. Their disclosure provides insight into maturities, costs, and collateral.

Long-term liabilities must be settled only after 12 months or later. Their valuation and disclosure provide insight into the financial structure of a company.

Private use of a business car is taxable and is considered a monetary benefit. To determine the private portion, there are effective and flat-rate methods.

Banks check the creditworthiness of an applicant in detail and require adequate collateral such as real estate or guarantees. The collateral and their loan-to-value limits vary depending on the type and value.

Dividends and interest on securities are reduced by a 35% withholding tax. This tax is reimbursed domestically, but not for foreigners without an agreement.