Swiss accounting law (droit comptable suisse, CO art. 957 ss — revised in 2013) governs the accounting and financial reporting obligations of Swiss entities. It requires all companies with commercial activity to maintain proper accounts and produce annual financial statements. Companies above CHF 500,000 revenue must prepare accounts conforming to minimum standards; larger entities face additional requirements including cash flow statements, notes and segment reporting. The CO accounting framework differs significantly from IFRS — notably in its permissive approach to provisions and the absence of IFRS 16 operating lease capitalisation. In due diligence, CO-to-IFRS restatements are standard for cross-border transactions.

‍

Example: due diligence on a Swiss CO company reveals CHF 1.8 million of operating lease commitments (absent from CO balance sheet, pre-IFRS 16) and CHF 2.5 million pension deficit (disclosed in actuarial notes, not CO balance sheet). These CO-to-IFRS adjustments increase apparent net debt by CHF 4.3 million — a material finding that directly reduces the equity value in the acquisition bridge.

‍

Hectelion performs CO-to-IFRS restatements in every Swiss acquisition due diligence, ensuring acquirers understand the economic balance sheet beyond CO accounting.