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Swiss GAAP FER 20: What It Is & How It Works
Learn how Swiss GAAP FER 20 covers asset impairment, testing, recoverable amount, reversals, and disclosures for Swiss businesses.
Élodie Rochat
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8 minutes read
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What Is IFRS? Standards, Reporting and Swiss Rules
Learn what IFRS is, how its standards work, and when Swiss businesses use IFRS for financial reporting.
Audit et contrôles
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Introduction
What is IFRS, and why does it matter to a business in Switzerland? IFRS is an international accounting framework that makes company financial statements clearer and easier to compare.
It is most relevant to listed companies, multinational groups, Swiss subsidiaries of foreign businesses, and companies seeking international finance. This guide explains the IFRS meaning, reporting requirements, Swiss rules, industry applications, and the latest changes in 2026.
What Is IFRS?
IFRS stands for International Financial Reporting Standards. It is a global set of accounting standards that explains how companies should recognise, measure, present, and disclose financial information.
In simple terms, IFRS creates a common financial reporting language. It helps investors, lenders, shareholders, and regulators compare companies across different industries and countries.
IFRS applies to financial reporting. It does not replace tax returns, local tax rules, or everyday bookkeeping.
Companies in more than 140 jurisdictions must use IFRS Accounting Standards when reporting on some or all publicly accountable entities. The framework aims to improve transparency, comparability, and trust in financial reporting.
What Does IFRS Stand For?
The main terms are:
- IFRS: International Financial Reporting Standards
- IASB: International Accounting Standards Board
- IFRS Foundation: The independent organisation overseeing the standard-setting process
The IASB develops IFRS Accounting Standards within the IFRS Foundation.
What Are the Benefits and Challenges of IFRS?
The main purposes of IFRS are to improve transparency, make financial reports easier to compare, and provide useful information to investors and lenders.
However, using IFRS can also create extra work for a company’s finance team.
Benefits of IFRS Reporting
The main advantages of IFRS include:
- Better comparison between companies in different countries
- Greater confidence among investors and lenders
- Consistent reporting across international business groups
- Better access to cross-border finance
- Stronger preparation for acquisitions, fundraising, or listings
These benefits can be valuable for Swiss companies that work with foreign parent companies, banks, investors, or business partners.
Challenges of IFRS Reporting
The disadvantages of IFRS often relate to complexity. Companies may need detailed accounting policies, wider disclosures, external valuations, stronger systems, and more professional judgement.
IFRS implementation can also increase reporting, audit, training, and technology costs. IFRS may be suitable for internationally active companies, but it is not always proportionate for a small Swiss business with simple reporting needs.
What Are IFRS Accounting Standards?
To answer “what are IFRS accounting standards” in simple terms, IFRS is not one accounting rule. It is a wider framework that includes:
- IFRS Accounting Standards
- International Accounting Standards, or IAS
- IFRIC interpretations
- SIC interpretations
- The Conceptual Framework for Financial Reporting
IFRS Standards also include interpretations issued by the IFRS Interpretations Committee and earlier standards issued by the IASB’s predecessor.
Who Creates IFRS Standards?
The IASB develops new standards and updates existing requirements. It also consults companies, investors, auditors, regulators, and national accounting bodies before issuing major standards or amendments.
This process is designed to ensure that IFRS accounting standards reflect real financial reporting needs across different markets.
What Are the Main IFRS Standards?
The following IFRS standards list covers some of the rules companies use most often:
IFRS 3
Main accounting areaBusiness combinations
IFRS 9
Main accounting areaFinancial instruments
IFRS 10
Main accounting areaConsolidated financial statements
IFRS 15
Main accounting areaRevenue from customer contracts
IFRS 16
Main accounting areaLeases
IFRS 17
Main accounting areaInsurance contracts
IAS 2
Main accounting areaInventories
IAS 12
Main accounting areaIncome taxes
IAS 16
Main accounting areaProperty, plant, and equipment
IAS 19
Main accounting areaEmployee benefits
IAS 36
Main accounting areaAsset impairment
IAS 38
Main accounting areaIntangible assets
IAS and IFRS work together. Many IAS standards issued before the current IASB structure remain active unless they have been replaced or withdrawn.
IFRS Reporting: Requirements and Financial Reports
What is IFRS reporting? It is the process of preparing financial statements according to IFRS recognition, measurement, presentation, and disclosure requirements.
A company cannot describe its financial statements as IFRS-compliant unless it meets all applicable IFRS requirements and makes an explicit statement of compliance in its notes.
What Does an IFRS Financial Report Include?
A complete set of IFRS financial statements normally includes:
- A statement of financial position
- A statement of profit or loss and other comprehensive income
- A statement of changes in equity
- A statement of cash flows
- Notes to the financial statements
- Comparative information from the previous period
These reports normally follow accrual accounting principles. This means income and expenses are recorded in the period in which they arise, rather than only when money is received or paid.
IFRS Reporting vs Bookkeeping
Bookkeeping records a company’s daily transactions. IFRS financial reporting determines how those transactions should be measured and shown in the final accounts.
IFRS reporting requirements may involve fair-value calculations, impairment tests, deferred tax, consolidation adjustments, professional estimates, and detailed financial disclosures.
IFRS vs Swiss GAAP FER vs Swiss CO
The main accounting frameworks in Switzerland serve different needs.
Most Swiss legal entities must keep and present accounts under the Swiss Code of Obligations. Swiss sole proprietorships and partnerships with annual turnover above CHF 500,000 are also subject to its full accounting requirements.
Listed issuers must use a recognised financial reporting standard based on the relevant SIX reporting segment.
Key Differences Between the Accounting Standards
Main purpose
Swiss COStatutory compliance
Swiss GAAP FERTrue and fair Swiss reporting
IFRSInternational financial reporting
Common users
Swiss COMost Swiss businesses
Swiss GAAP FERSwiss SMEs and groups
IFRSInternational and listed groups
Complexity
Swiss COLower
Swiss GAAP FERModerate
IFRSHigher
Disclosures
Swiss COLimited
Swiss GAAP FERModerate
IFRSExtensive
International comparability
Swiss COLimited
Swiss GAAP FERModerate
IFRSHigh
Implementation cost
Swiss COLower
Swiss GAAP FERModerate
IFRSHigher
Which Accounting Framework Should a Swiss Company Choose?
Swiss CO suits companies that need basic statutory accounts.
Swiss GAAP FER accounting standards suit organisations that need a true and fair view with more proportionate requirements than IFRS.
IFRS suits international groups and companies that need broader global comparability. Under the SIX International Reporting Standard, companies may use IFRS or US GAAP. The Swiss Reporting Standard generally uses Swiss GAAP FER or the applicable banking standard.
The choice between IFRS vs Swiss GAAP FER or IFRS vs Swiss CO should reflect the company’s legal duties, ownership structure, financing plans, listing goals, and reporting users.
How Can a Swiss Company Adopt IFRS?
IFRS adoption should be treated as a structured finance and reporting project.
Step 1: Define the Reporting Objective
Confirm whether IFRS is needed for a parent company, investor, lender, acquisition, fundraising round, or listing.
Step 2: Complete an IFRS Gap Assessment
Compare the company’s current Swiss CO or Swiss GAAP FER policies with IFRS requirements.
Step 3: Prepare the Opening IFRS Balance Sheet
Identify the first-time adoption adjustments and reconciliations required under IFRS 1.
Step 4: Update Accounting Policies and Systems
Review the chart of accounts, reporting systems, consolidation process, valuation data, and internal controls.
Step 5: Prepare IFRS Disclosures
Document accounting policies, estimates, professional judgements, financial risks, and differences from the previous reporting framework.
Step 6: Prepare for Audit
Keep clear evidence for material calculations, valuations, controls, and reporting decisions. Strong preparation can reduce delays during IFRS conversion and support reliable IFRS compliance in Switzerland.
How Is IFRS Used Across Swiss Industries?
IFRS applications vary because each industry has different transactions, assets, and financial risks.
Banking and Financial Services
Banks and financial businesses use IFRS 7, IFRS 9, and IFRS 13 for financial instruments, expected credit losses, fair-value measurement, derivatives, and risk disclosures.
Pharmaceuticals and Life Sciences
IFRS 15, IAS 36, and IAS 38 affect licence revenue, research and development costs, intangible assets, and impairment reviews.
Technology and Software Companies
Common IFRS accounting examples include software development costs, intellectual property, subscription revenue, and share-based payments. IFRS 2, IFRS 15, and IAS 38 are often relevant.
Manufacturing and Commodity Trading
IAS 2, IAS 16, IAS 21, and IFRS 9 affect inventory valuation, production equipment, foreign-currency transactions, and certain commodity contracts.
International Business Groups
IFRS for Swiss companies within global groups often covers foreign subsidiaries, intercompany eliminations, acquisitions, goodwill, and consolidated financial statements.
IFRS 10 sets the principles for consolidation when a parent controls one or more subsidiaries. IAS 36 covers impairment reviews, including tests for goodwill and certain intangible assets.
What IFRS Changes Apply in 2026?
The IFRS updates for 2026 affect annual reporting periods beginning on or after 1 January 2026.
IFRS Amendments Effective in 2026
The official 2026 editions include amendments related to:
- Classification and measurement of financial instruments
- Annual Improvements to IFRS Accounting Standards—Volume 11
- Contracts referencing nature-dependent electricity
A revised Management Commentary practice statement is also included. Together, the 2026 changes amend six IFRS Accounting Standards.
Which New IFRS Standards Should Companies Prepare For?
IFRS 18 replaces IAS 1 for annual periods beginning on or after 1 January 2027. It introduces changes to the presentation and disclosure of financial performance.
IFRS 19 also applies from 1 January 2027. It allows eligible subsidiaries without public accountability to use reduced disclosures while applying the recognition and measurement requirements in other IFRS Standards. Earlier application is permitted for both standards.
How Can Fiduciaire Genevoise Help With IFRS?
Fiduciaire Genevoise supports businesses with IFRS readiness assessments, Swiss CO-to-IFRS conversion, accounting policies, consolidated financial statements, group reporting packages, internal controls, and audit preparation.
Its audit and controls services include consolidated financial statement audits applying IFRS, IAS, and Swiss GAAP standards.
FAQ
No. Most Swiss entities prepare statutory accounts under the Swiss Code of Obligations. IFRS may be required by a listing segment, international parent company, lender, investor, or group financial reporting policy.
Conclusion
IFRS is a global framework for transparent and comparable financial reporting. It matters most to Swiss companies with international owners, investors, financing, or listing plans. Before adopting it, companies should assess whether the benefits justify the added complexity and seek professional support for a controlled conversion.
Alice Meier
Audit et contrôles
Services fiduciaires
What Is IFRS? Standards, Reporting and Swiss Rules
Learn what IFRS is, how its standards work, and when Swiss businesses use IFRS for financial reporting.
Alice Meier
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6 minutes read
Services fiduciaires
Swiss GAAP FER 4: Cash Flow Statement Guide
Learn Swiss GAAP FER 4 cash flow rules, reporting methods, examples, and where to download the latest Swiss standard.
Élodie Rochat
4 August 2026
8 minutes read