Daetwyler to change from IFRS to Swiss GAAP FER
The Board of Directors of Daetwyler Holding Inc. has decided to change the standards used for its financial reporting retrospectively from the beginning of 2010. The internationally operating multi-niche player will now apply Swiss GAAP FER in its financial reporting instead of the International Financial Reporting Standards (IFRS) used in the past.
Swiss GAAP FER as a solid alternative
The main reason for this change is the increasing complexity and intricacy of the detailed rules and disclosure requirements of IFRS. Companies need to carefully evaluate whether the costs of IFRS are still in reasonable proportion to the benefits. Daetwyler believes this trend will become more acute. The Group is convinced that Swiss GAAP FER provides Swiss companies with a comprehensive and solid alternative. By concentrating on essentials, Swiss GAAP FER is less complex and simpler to apply. Daetwyler will continue to prepare high-quality consolidated financial statements applying the "true and fair view" principle. Daetwyler's bearer shares will continue to be listed on the SIX Swiss Exchange and remain in the Swiss Performance Index SPI. Under the Directive on Financial Reporting (DFR, Art. 6), the change in accounting from IFRS to Swiss GAAP FER means that Daetwyler's bearer shares will be traded on the Domestic Standard segment. An application to change segment will be filed with the SIX Swiss Exchange. This change in regulatory segment is expected to take place at the end of June 2010 following approval of the application by the SIX Swiss Exchange.
Effects of the change
The switch from IFRS to Swiss GAAP FER will lead to changes in the Daetwyler Group's accounting policies, in particular in the presentation of goodwill, intangible assets from acquisitions and pension liabilities. Daetwyler has decided to now offset goodwill and intangible assets from acquisitions against equity. Pension liabilities will be affected in that the Group's economic obligations under the existing Swiss pension plans will be considerably lower under Swiss GAAP FER 16 than under IAS 19 in the financial statements at 1 January 2009 and at 31 December 2009. The above-mentioned adjustments are expected to result in a slight decrease in the equity ratio and a slight increase in the net result at 31 December 2009. A restatement with a detailed reconciliation will be presented in the Interim Report 2010 and Annual Report 2010.
Dätwyler Holding AG
The Daetwyler Group is an international multi-niche player dedicated to industrial component supply and distribution of engineering and electronic components. Its activities concentrate on attractive niches that offer opportunities to increase value added and sustain profitable growth. The Group's four divisions - Cables, Rubber, Pharmaceutical Packaging and Technical Components - are focused on the manufacturing, pharmaceutical and datacom industries. With more than 40 operating companies, sales in over 80 countries and some 4,500 employees, the Daetwyler Group generates approximately CHF 1,200 million in revenue. Daetwyler has been listed on the main board of the SIX Swiss Exchange since 1986 (security number 3048677).