SWX Swiss Exchange issues reprimand against Industrieholding Cham AG
The SWX Swiss Exchange has issued a reprimand against Industrieholding Cham AG for breaching the provisions
of the IFRS accounting standards in connection with the company's2006 financial statements. The reprimand
concerns the improper treatment of properties intended for sale and the resulting incorrect amounts reflected
on the balance sheet and cash flow statement.
Industrieholding Cham AG, which is listed in the main segment of the SWX Swiss Exchange, breached the provisions
of IFRS in its 2006 consolidated financial statements by treating self-developed propertiesintended for sale as
fixed assets rather than inventories.
The development and subsequent sale of properties has represented a normal business activity for Industrieholding
Cham AG in recent years. IAS 40p9(a) stipulates that property held for sale in the ordinary course of business
or in the process of construction for such sale must be treated as inventories in accordance with IAS 2. In
consequence, the company's erroneous classification of these properties intended for sale as fixed assets led
to materially incorrect amounts being reflected on the balance sheet (fixed assets instead of current assets)
and cash flow statement (investing activities instead of operating activities) of its 2006 consolidated financial
After considering all aspects of the matter, SWX has issued a reprimand against Industrieholding Cham AG in the
case at hand.
Periodic reporting in compliance with applicable financial reporting and auditing provisions forms an integral
part of the information that contributes to a properly functioning market in accordance with the provisions of
the Stock Exchange Act and the Listing Rules. One of the tasks of SWX is to enforce the transparency provisions
Previous sanctions imposed by SWX in connection with financial reporting can be accessed at: