Finance

The authority to levy direct federal tax and value-added tax should be extended until 2035, key sources of the federal budget. Voting on the new financial order 2021 will take place on March 4, 2018.

Participation certificates allow corporations an alternative to issuing shares, as they provide equity without voting rights. Holders benefit from profit and goodwill, but without a say.

Mezzanine financing combines characteristics of debt and equity, often used in startups due to risk sharing and profit participation. Profit participation loans and convertible loans are common forms, with advantages such as long-term capital provision without direct voting rights.

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.