Essential accounting and valuation principles
a. Principles
These financial statements were prepared in accordance with the provisions on commercial accounting laid down in 32nd title of Swiss Code of Obligations. Where not prescribed by law, the significant accounting and valuation principles applied are described below.
b. Inventories
Inventories and non-invoiced services are recorded at acquisition costs: If the net realizable value at the balance sheet date is lower than acquisition costs, net realizable values are used. Acquisition costs are calculated using the weighted average cost method.
c. Financial assets and investments
Financial assets and investments are valued at their acquisition cost adjusted for impairment losses.
d. Interest-bearing financial liabilities
Interest-bearing financial liabilities are recognized in the balance sheet at their nominal value.
e. Leasing
Leasing and rental agreements are recorded according to the right-of-use. For this reason, the right-of-use corresponds to the present value of the lease liability at the inception of the contract. The term of the lease agreement is determined by the fixed contract term and any extension options. The lease liability corresponds to the present value of future lease payments, which bear interest at an implicit rate and are reduced by the amortization payments.
f. Treasury shares
Treasury shares are recognized at cost as a negative item in equity at the time of acquisition. Upon subsequent resale, the gain or loss is recognized in the income statement as financial income or expense.
g. Revenue from sale of goods and services
Revenue trading activities are recognized when the entity has transferred the significant risks and rewards of ownership of the goods to the buyer, when the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, when the amount of revenue can be measured reliably, and when it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.