Accounting

Hidden reserves arise when assets are valued differently in the books than in the market. Their realization occurs, for example, through sale or book value appreciation.

Receivables are generally assessed at face value, with risks such as default of payment and currency fluctuations requiring value adjustments. Value corrections are made as bad debt provisions through indirect items with a negative balance.

Liquid assets are essential on the balance sheet, as they indicate the ability to invest. They include cash, credit balances, and easily marketable securities.

According to the law of obligations, short-term liabilities must be separately disclosed in the balance sheet and divided into various categories. They are central to assessing the financial position of a company, as they significantly affect liquidity and capital structure.

Depreciation records the reduction in value of assets to represent the current operating assets. The amount depends on the asset and ranges from 2% for residential buildings to 45% for tools.

The accounts payable account reflects the debts to suppliers in the balance sheet and is charged when purchasing on account. It is essential for the financial health of a company to settle these liabilities on time.

The appendix to the annual financial statement is newly regulated by Art. 959c OR and now contains more detailed information such as explanations of the balance sheet and income statement. Sole proprietorships and partnerships may waive the appendix under certain conditions.

In accounting, success accounts are divided into expense and revenue accounts, without an opening balance. Annually, all expenses and revenues are recorded there and then reset to zero.

The Equity account shows the company's debts to the business owner and changes through profits, losses, or private deposits. The Private account records the owner's private transactions and is transferred annually to equity.