Provisions, Contingent Liabilities in the New Corporations and Accounting Code (Handelsrechtliche Rückstellungen und Eventualverbindlichkeiten: Analyse des Entwurfes zum Aktien- Und Rechnungslegungsrecht)
FREIHEIT OHNE GRENZEN - GRENZEN DER FREIHEIT, pp. 179-196, Guido Muehlemann, Annja Mannhart, eds., Zuerich/St.Gallen, 2008
18 Pages Posted: 23 Mar 2011
Date Written: Mai 1, 2008
Abstract
This article discusses the rules for provisions and contingent liabilities as proposed in the draft of the Swiss Code of Obligations. The article explains the application of the new accounting and corporations law rules and compares the new rules of the Swiss Code of Obligations to the International Financial Reporting Standards, especially IAS 37.
The main conclusion is that the new Articles are not very clear since many ambiguities remain. With the new Code, the financial statements can still be prepared with many rights of choice. It is still possible to recognize provisions and contingent liabilities in many different ways. The new Code intended to reduce the possibilities for creative accounting; however, the proposed draft fails to eliminate those accounting loopholes.
Keywords: provisions, contingent liabilities, Swiss Code of Obligations, IAS 37, International Accounting Standards, International Financial Reporting Standards
JEL Classification: M41, K22
Suggested Citation: Suggested Citation