Swiss GAAP FER Separate Financial Statements: First-Time Adoption and BEPS Pillar 2

David Baur Partner and Leader Corporate Reporting Services, PwC Switzerland Dec 12, 2024

Swiss GAAP FER is increasingly applied for many reasons. One of them is the Minimum Taxation Ordinance (MindStv/OIMin) which permits the application of Swiss GAAP FER for the determination of the Qualified Domestic Minimum Top-up Taxes (QDMTT) in connection with the Pillar Two of the OECD’s/G20 Inclusive Framework on BEPS base erosion and profit shifting (BEPS 2.0).

An entity that prepares Swiss GAAP FER financial statements for the first time is called a first-time adopter. Due to its principle-based approach, the standard includes only limited guidance for a number of topics, including the initial application. Depending on the complexity of the entity involved, this may raise various practical implementation questions.

This publication provides answers to questions that, in our experience, arise frequently when an entity first applies Swiss GAAP FER. A special focus lies on examples to practical challenges that Swiss GAAP FER preparers might encounter. Further, selected questions address issues that may be encountered when preparing Swiss GAAP FER financial statements for BEPS 2.0 purposes.

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