International Financial Reporting Standards (IFRS) are the globally recognised accounting standards issued by the International Accounting Standards Board (IASB), mandatory for consolidated accounts of listed companies in the EU and Switzerland, and widely adopted by large unlisted groups. Key IFRS standards relevant to business valuation and due diligence include: IFRS 3 (business combinations and PPA), IFRS 9 (financial instruments), IFRS 16 (leases), IAS 36 (impairment) and IFRS 13 (fair value measurement). Cross-border transactions between France and Switzerland require careful attention to IFRS vs. French GAAP and Swiss CO accounting differences.

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Example: a Swiss industrial group preparing for sale presents consolidated accounts under IFRS and statutory accounts under Swiss CO. The IFRS accounts recognise CHF 8.2 million of right-of-use assets and lease liabilities under IFRS 16 (absent from CO accounts), and CHF 3.5 million of pension deficit under IAS 19 — both debt-like items integrated into the net debt bridge in the acquisition price calculation.

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Hectelion applies IFRS standards rigorously in every due diligence and PPA engagement, translating accounting differences into precise economic impacts on valuation and transaction price.