“At the moment we are reviewing the exact requirements and we are verifying whether a signature is required on our quarterly reports.Generally Accepted Accounting Principles (GAAP) serve as a standardized set of guidelines for companies to follow when preparing and presenting their financial statements. “The President of the group executive board and other senior executives already review and sign off our financial reports today,” she told swissinfo. Larissa Alghisi, a spokeswoman for UBS, says the bank’s executives already sign the annual results, and that the bank is checking whether they should sign quarterly numbers, too. And the former boss of the defunct national carrier, Swissair, Philippe Bruggisser, stepped down after his strategy of building a Swissair-led alliance failed, ultimately causing the airline’s collapse. “If you look at Swissair or ABB, where are the CEOs who are considered to be guilty for the company’s problems? They’re not there anymore so there’s no need for any other measures.”įormer ABB CEO Göran Lindahl, left under a cloud after his restructuring programme failed to bear fruit. Meier says there is no need to tighten Swiss law regarding company bosses because the system is effective at weeding out bosses who fail to perform. The US Securities and Exchange Commission (SEC) is now insisting that both CEOs and CFOs personally sign off their company’s financial results so that they can be held liable if irregularities are later discovered. Under the new US legislation company bosses face prison terms of up to 20 years if they are found guilty of knowingly publishing false information. They also demand that information regarding a firm’s shareholder structure, capital structure and shareholder participation must be published. The SWX rules focus on improving transparency. “There’s no need for hasty change when it’s demanded by politicians in other countries.” “Responsibilities for managing companies in Switzerland are pretty clear,” Meier told swissinfo. Indeed, it has already revamped its own guidelines for corporate governance, and Richard Meier, head of international affairs at the SWX, says he sees no reason to change them. The Swiss stock exchange (SWX), too, says it has no plans to change its rules in light of the US move. The collapse of these two giants rocked corporate America and sent markets tumbling all over the world as investor confidence plummeted. Swiss firms have been taking note of the new legislation signed by President George W Bush in the wake of accounting scandals at Enron and Worldcom. “It does not affect foreign companies.”Įven so, Novartis posts its results using the America’s Generally Accepted Accounting Principles (GAAP), while another NYSE listed firm, Swisscom, uses a special 20F accounting form, which complies with US standards. “This new law doesn’t have any influence on our accounting practices because we don’t have our headquarters in the United States,” Felix Raeber, spokesman for the pharmaceutical giant, Novartis, told swissinfo. The handful of Swiss companies listed on the NYSE say their accounting procedures largely fulfil the requirements of US law, even though they are not obliged to follow American rules.
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