31.01.2026

Foreign currencies in annual financial statements: Compliance with the Swiss Code of Obligations is not optional

Why valuation on the reporting date is mandatory

During the year, foreign currencies may be recorded at the SNB's monthly average exchange rates. This practice is recognized under commercial and tax law and is correctly implemented by standard accounting systems.

However, the closing rate must be used on the balance sheet date. Monetary items such as bank balances must be revalued, with exchange gains or losses recognized in profit or loss. In practice, automatic conversion often does not take place.

Our recommendation is clear: the valuation method and exchange rate source must be documented in the financial statements dossier. This reduces queries and prevents formal deficiencies during audits.

#Foreign currencies #OR #Annual financial statements #Accounting #SNB #Compliance

https://x.com/zugtrust/status/2018715079965848016