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Findea AG opens a new branch in Lucerne, offering comprehensive services such as bookkeeping and legal advice. Contact: Silvie Griss, Tel.: +41 (0) 41 267 09 10.

The dissolving of hidden reserves in the income statement leads to inflated profit. Their formation is legally permissible in Switzerland.

The arbitrary valuation of hidden reserves in Switzerland contradicts the "true and fair view" principle of international standards such as IFRS and US GAAP. Hidden reserves serve to minimize profits for taxes and dividends, but do not change the actual financial situation.

Art. 960e of the Swiss Code of Obligations requires provisions for uncertain liabilities and impending losses; these act as external capital with an indefinite amount or timing. Unlike short-term transitory liabilities, provisions are often medium to long-term and cover risks such as legal disputes or pending transactions.

The balance sheet shows the financial position of a company by comparing assets and liabilities. It is prepared annually and includes current and fixed assets and various types of capital.

Since 2008, SMEs in Switzerland can opt out of having an audit office (Opting-Out), which saves costs but requires more intensive credit checks by lenders. Despite the risk to lenders and suppliers, this approach is often chosen because the cost factor predominates.

Since 2012, companies must conduct a proper audit under stricter conditions if they meet certain financial criteria or legal requirements. The criteria for this are regulated in Art. 727 of the Swiss Code of Obligations and include, among others, publicly traded companies and those with large balance sheets or employee numbers.

The private portion for business vehicles can either be determined effectively through a logbook or as a flat rate of 0.8% of the purchase price per month. This amount is treated as AHV-liable salary and taxed.

Like an employee's salary, social security contributions and other social levies are due on the board of directors' fee. The article clarifies this obligation to pay contributions.