In August 2009, SIX Exchange Regulation came to an agreement with Pelikan Holding Ltd regarding breaches of Swiss GAAP FER in its 2008 financial statements. While Pelikan Holding Ltd corrected these breaches in its 2009 financial statements, it did not disclose these as errors; as a result, it has been fined by the Sanction Commission.
Pelikan Holding Ltd is listed in the Domestic Standard of SIX Swiss Exchange. The companys 2008 financial statements were found to be in breach of the provisions laid down in Swiss GAAP FER as the information disclosed on pension obligations and expenses was found to be incomplete and partially incorrect (Swiss GAAP FER 16/13). In addition, the company’s income statement incorrectly presented the “expenses for pensioners” as an extraordinary expense (Swiss GAAP FER 16/3a) and the profit attributable to minority interests (Swiss GAAP FER 30/1).
As part of the agreement entered into with SIX Exchange Regulation, Pelikan Holding Ltd was obliged to correct and disclose these breaches in its subsequent financial statements in line with the provisions set out in Swiss GAAP FER. While these breaches were corrected in its 2009 financial statements, they were not disclosed as errors.
As such, it was not clear to investors that the adjustments made resulted from the corrections of past errors. This made it significantly more difficult for the general public to evaluate the quality of the financial statements prepared by Pelikan Holding Ltd.
The Sanction Commission therefore decided to impose a fine of CHF 25,000 on Pelikan Holding Ltd.
Periodic financial reporting is part of the information required under the Stock Exchange Act and the Listing Rules to ensure a functional market. As part of this process, issuers must comply with the applicable accounting standards. It is the responsibility of SIX Exchange Regulation to ensure that issuers adhere to the transparency provisions imposed on them by the Regulatory Board.
D.C.