In the mid-1980s, based on the initiative of professor André Zünd (†) of the University of St.Gallen, the Swiss Expert Association for Audit, Tax and Fiduciary launched the idea of founding an independent institution concerned with the further development of accounting and reporting standards in Switzerland.
The stated objective was, and still is, to promote the comparability of financial statements and to bring informational content and the concept of accounting in Switzerland into line with international standards.
The accounting standards of the Swiss GAAP FER require as their highest principle the presentation of a true & fair view of the financial position, the cash flows and the results of operations.
As all members of the FER, including the members of the Executive Committee, the technical secretary and the president, work in an honorary capacity, the financial budget is modest. Expenses are financed mainly with revenues from the sale of the recommendations and with contributions of institutions. The current Swiss GAAP FER as well as the published drafts of new recommendations are available in an annual publication in German, French, English and Italian.
Organisational chart of Swiss GAAP FER
- The Board of the Foundation functions as the top management of the foundation for accounting and reporting recommendations. Among its most important tasks are the election of members to the Commission, the adoption of organisational regulations, the supervision of foundation activities and the approval of the financial statements.
- The Commission is the body responsible for the issuance of the Swiss GAAP FER. It performs, among others, the following tasks:
– Selection of the Executive Committee
– Approval of the work programme
– Issuing assignments to the Executive Committee
– Discussion of submitted preliminary drafts
– Adoption of recommendations for the Swiss GAAP FER - Public agencies cooperate with the Commission through (non-voting) observers.
- A technical secretary assists the president of the Commission or the Executive Committee in all professional and administrative tasks.
- Technical assistants are project team members employed at the universities of St.Gallen and Zurich who support the FER foundation as necessary.
- The Executive Committee is the preparatory and executive body of the Commission.
- For the preparation of a Swiss GAAP FER, the Executive Committee may set up a subcommittee with the involvement of external experts whose task normally ends with the approval of a Swiss GAAP FER by the Commission.