The Audit Committee News informs you about all of the latest trends in its core focus areas of corporate governance, risk management & compliance and corporate reporting. The ACNews features articles penned by experts from Switzerland and many other countries around the world.
Esteemed Board members,
A favorable economic environment coupled with increasing pressure to innovate and transform have once again led to brisk M&A activity in the Swiss market in the past year. The trend will probably continue in the current year, Patrik Kerler and Lara Kurth report.
One of any Board of Directors’ central tasks is the succession planning of its own Board members but especially of the CEO as well. Clemens Hoegl of Egon Zehnder examines the question to what extent the Board of Directors should generally contribute to talent management and succession planning. He hopes that these topics will be discussed with as much commitment and passion at board and management levels as the budgets.
The tax reform passed in the USA on 22 December 2017 is far-reaching and the effects on Swiss companies are complex. Its core element is the reduction of the corporate tax rate from 35 percent to 21 percent. Additionally, interest deductions are restricted, loss offsetting possibilities reduced, previously untaxed retained profits of foreign subsidiaries and previously deductible expenses of related companies are taxed. A careful analysis is needed and is already under way in many companies, as Sébastien Maury, Luan Nussbaum and Andrew Vincett explain. Audrey Hamm sets out the impact of the tax reform on the annual financial statements in accordance with IFRS.
The new IFRS standard on financial instruments has been in force since 1 January 2018. It also impacts the accounting of companies that are not active in the financial sector. Samuel Seiler sheds some light on the new classification and valuation principles with a focus on industrial companies. Of particular interest here are the so-called expected credit loss model and the associated new impairment regulations as well as the simplified new hedge accounting.
The Swiss Stock Exchange amended the Corporate Governance Directive as of mid-last year to take account of the increasing importance of sustainability reporting. Reto Eberle explains this provision and provides information on recent empirical surveys on the situation in Switzerland. Despite mandatory reporting in the EU, information on sustainability is already widespread in Switzerland even without a legal obligations.
We hope you enjoy the read and look forward to receiving your feedback!
Philipp Hallauer and Reto Eberle
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