These financial statements were prepared according to the provisions of the Swiss Law on Accounting and Financial Reporting (32nd title of the Swiss Code of Obligations). Where not prescribed by law, the significant accounting and valuation principles applied are described below. It should be noted that to ensure the company’s going concern, the company may create or release hidden reserves.
Non-current assets include long-term loans and investments. Loans granted in foreign currencies are translated at the exchange rate applicable on the balance sheet date; unrealised losses are recorded, but unrealised profits are not recognised. Investments are valued at their acquisition cost adjusted for impairment losses, if any.
Treasury shares are recognised at historical costs and deducted from shareholders’ equity at the time of acquisition. In case of a resale, the gain or loss is recognised through equity.
Interest-bearing liabilities are recognised in the balance sheet at nominal value. Issue costs for financial debts are capitalised and amortised on a straight-line basis over the financial debt maturity period.
As Cicor Technologies Ltd. has prepared its consolidated financial statements in accordance with a recognised accounting standard (Swiss GAAP FER), it has decided to forego presenting additional information on interest-bearing liabilities and audit fees in the notes as well as a cash flow statement in accordance with the law.
Derivative financial instruments for hedging balance sheet items are stated at fair value upon conclusion of the contract and are shown under other current receivables third parties and financial liabilities third parties. Consequently, the derivative financial instruments are valued at market value, whereas non-realised gains and losses are recognised in the financial result. The market values of the derivative financial instruments are derived from the market prices at the end of the period. To hedge currency risks, the Group can make use of foreign exchange forwards.