Updated on 22 August 2026. We checked the requirements of the Code of Obligations for financial statements under a recognized standard and the list of recognized standards. Since first publication, nothing has changed in the legal situation. We added the complete list under Art. 1 of the Ordinance on Recognized Accounting Standards: besides Swiss GAAP FER, IFRS and US GAAP, it also includes IFRS for SMEs and IPSAS; for banks and securities firms, the accounting rules of FINMA are treated as equivalent. Still valid without change: the Code of Obligations as the minimum standard, the mandatory cases under Art. 962 OR, the requirement to apply the chosen standard in its entirety, and the classification of the standards by company size and stakeholders.
Importance of accounting standards in Switzerland
In the modern business world, accounting rules play a decisive role in the transparency and comparability of financial data. Accounting standards define how companies prepare and present their financial reports. They create a common basis for assessing the financial position, used by stakeholders, investors, lenders and management.
Code of Obligations
The Code of Obligations (OR) specifies which companies must prepare financial statements under a recognized standard in addition to the regular statutory annual financial statements (Art. 962 OR). Such additional financial statements are required from companies whose equity securities are listed on a stock exchange, if the exchange requires it, from cooperatives with at least 2,000 members, and from foundations subject to an ordinary audit. They can also be requested by shareholders representing at least 20% of the share capital, by 10% of the cooperative members or by 20% of the association members. Accounting standards contain more detailed requirements for the annual financial statements than the OR. In the Ordinance on Recognized Accounting Standards (VASR), the Federal Council designates five sets of rules as recognized standards: IFRS, IFRS for SMEs, Swiss GAAP FER, US GAAP and IPSAS. For banks and securities firms, the accounting rules of FINMA are also treated as equivalent.
Swiss GAAP FER
Swiss GAAP FER is a Swiss accounting standard. It is suitable for small and medium-sized Swiss companies operating nationally. Its aim is to present, in simplified form, a true and fair view of the assets, earnings and financial position of a company. Thanks to its modular structure, SMEs can also prepare financial statements under a standard without disproportionate effort.
International Financial Reporting Standards (IFRS)
IFRS are internationally recognized accounting standards issued by the International Accounting Standards Board (IASB). Although they are not required by law in Switzerland, many Swiss companies use IFRS for their annual financial statements. IFRS Accounting Standards are more comprehensive than Swiss GAAP FER.
US GAAP
The United States Generally Accepted Accounting Principles (US GAAP) are an example of accounting standards of the United States. Companies listed on US stock exchanges must commit to these standards.
