Preparation of the annual accounts

In the preparation of the annual financial statements, a balance sheet, an income statement, and an appendix must be created, among other things. Details can be found in the Code of Obligations.

Preparation of the Annual Financial Statements

The balance sheet categorizes assets and liabilities and presents the financial and financing situation. Assets are balanced as assets if they can be disposed of, an inflow of funds is likely, and their value can be reliably estimated. Assets that can be converted into liquid funds within one year are considered as current assets. The annual rule also applies to the distinction between short-term and long-term liabilities. Current assets and fixed assets come under assets. Short-term debt, long-term debt, and equity are included in liabilities.

Income Statement and Appendix

The income statement represents the earnings position of a company within a fiscal year. The income statement can be presented as a production income statement (total cost method) or as a sales income statement (cost of sales method).The appendix serves to explain and supplement the annual financial statements and contains information on the principles applied in the financial statements as well as information and explanations on items in the balance sheet or income statement. The law requires further information to be included in the appendix (Art. 959c CO).