IFRS Reprimand Issued Against Valartis Group by SIX Exchange Regulation
SIX Exchange Regulation, the independent oversight body that regulates trading on the SIX Swiss Exchange, has reprimanded Valartis Group, a Baar-based wealth and asset management firm, for several errors in its annual International Financial Reporting Standards (IFRS) financial statements for 2011, principally overstating its per share losses by 7%.
IFRS has been strengthened since the financial crisis of 2008 and Valartis was sanctioned for falling short of the rules. Specifically, the wealth and asset management firm made an erroneous presentation of earnings per share in 2011, said SIX Exchange Regulation, plus incomplete disclosures regarding goodwill impairment testing, as well as the incorrect disclosure of the classification of derivatives, which could have impacted any corporate investors.
The following violations of IFRS were identified in Valartis’ annual IFRS financial statements for 2011:
After considering the severity of the errors, the degree of fault, as well as the fact that the company has not been sanctioned during the last three years, SIX Exchange Regulation decided to issue a sanction notice against Valartis, warning them to ensure no repetition occurs. The company has accepted the sanction notice and says it will correct the errors in accordance with the requirements of IFRS in its annual financial statements for 2012.