Liechtenstein: Complying with the EU Directives

S

M

L

Segmented information of net turnover (categories of activity and / or geographical defined markets: both layouts in case of considerable differences; see Art. 1092 subpara. 4 PGR)

X

S

M

L

Statement of significant accounting principles

X

X

X

Statement of valuation principles (unless directly provided by law)

(plus value adjustments) [In this case specifically, explanation of valuation options for fixed value methods, goodwill, tax depreciation, depreciation due to temporary value reductions, interest on capital borrowed to finance the manufacturing costs in compliance with Art. 1091 para. 2 subpara. 5 PGR etc.]

X

X

X

Statement of foreign currency conversion method

X

X

X

Changes in / derogation from valuation principles and balancing methods (to be disclosed and explained)

X

X

X

Derogation from consistent application from one financial year to another, from prohibition of set-off, from the presumption to be carrying on its business as a going concern, is to be disclosed and explained.

X

X

X

Necessary derogations from balance sheet and P & L layouts in compliance with Art. 1067 para. 1 PGR to be disclosed and explained.

X

X

X

Assessment of the effects on assets, liabilities, financial position and profit and loss in case of departures from the accounting principles in accordance with Art. 1091 para. 2 subpara. 3 PGR

(report of the balance of all consequences; a simple presentation will suffice)

X

X

X

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L

Formation, organising, capital increase costs (capitalisation and depreciation over a period of 5 years, as allowed, to be commented to in the notes on the annual accounts)

X

X

Research and development costs (capitalisation and depreciation over a period of 5 years, as allowed, to be commented to in the notes on the annual accounts)

X

X

Goodwill (capitalisation and depreciation over the economic life to be substantiated in the notes on the annual accounts)

X

X

X

Fire insurance values of tangible fixed assets

X

X

X

Fixed asset movement schedule for all fixed assets (Art. 1070 PGR) (subject to purchase prices or production costs not being available on first application of this law without unjustified costs or delays, the net book value may be considered as purchase price or production costs at the beginning of the financial year. Application of this simplification must be stated in the notes on the annual accounts.)

X

X

Disagio (unless adequately commented to in the balance sheet)

X

X

X

Major variations from market values PER GROUP in case of simplifications in valuation for stocks, securities, movable assets; respectively in case of tangible fixed asset items, raw materials and consumables (valued at fixed value) (undisclosed reserves are not relevant here: the difference between the book value and the market value must be stated although it may exceed purchasing and manufacturing costs.) See Art. 1091 para. 2 subpara. 4 and Art. 1089 PGR.

X

X

Composition of share capital in case of more than one class (unless directly shown in the balance sheet) (number + nominal value; inclusive of participation certificates); see subpara 7 of Art. 1091 para. 2 PGR

X

X

X

Authorized capital (+ shares subscribed during the financial year and participation certificates)

X

X

X

Conditional capital (+ shares subscribed during the financial year and participation certificates)

X

X

X

Convertible debentures, dividend-right certificates etc., stating any rights and changes during the current financial year in compliance with Art. 1091 para. 2 subpara 8 and 9 PGR.

X

X

Holding of the reporting company's own shares, acquired by the reporting company itself or by a dependent company or a company in which the reporting company holds a majority or acquired by another party on behalf of the reporting company or a controlled company or a company in which the reporting company holds a majority or which have been taken as a pledge; number, nominal value, share in capital stock, date of acquisition of acquired shares, reasons for acquisition; statement of purchasing-/sales price and its deployment for transactions during the financial year.

These provisions also apply to participation certificates. Art. 1096 para. 2 subpara. 4 PGR. See also Art. 151 PGR.

X

X

X

For foundation costs, etc., prohibition of profit distributions must be considered. Available profit provisions that may be released at any point in time (also inclusive of retained profits brought forward and minus accumulated losses brought forward) must be at least of the same level as the not yet depreciated part of these capitalized expenses after distribution (= book value). See Art. 1072 PGR.

X

X

X

For research and development costs, etc., prohibition of profit distributions must also be considered. Available profit provisions that may be released at any point in time (also inclusive of retained profits brought forward and minus accumulated losses brought forward) must be at least of the same level as the not yet depreciated part of these capitalized expenses after distribution (= book value). See Art. 1072 PGR.

X

X

X

Liabilities to pension schemes (hardly practically relevant in our country)

X

X

Total amount of liabilities, becoming due and payable after more than five years. (For "medium"-sized and "large" companies not in total, but in detail, corresponding to the balance sheet layout.)

X

X

X

Total amount of secured liabilities of the company as per balance sheet, with indication of the nature and form of the pledged and assigned items (and similar type of real security). "Medium"-sized and "large" companies show the details corresponding to the balance sheet layout (and not only the total amount).

Practical recommendation: "In addition to this, securities customary in the industry and/or in compliance with the law exist for the own liabilities.".)

X

X

X

The item "Other provisions" will require comments.

X

X

Unless adequately presented in the balance sheet: The differential between major tax expenses for the current financial year in compliance with the Commercial Code, and tax expenditure accepted by the tax authorities for the financial year, must be delimited for the financial year in question when substantial (provisions or possibly accruals and deferrals). Example of a possible case: The tax authorities would only accept taxes paid referring to the previous financial year and tax expenditure for these paid taxes would vary greatly from tax expenditure of the current fiscal period. For "small" companies, the delimited tax total need not be separately shown.

X

X

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M

L

1. Extraordinary depreciation will apply when an asset will most likely be permanently subject to a reduction in value. (e.g. when during the new financial year it becomes obvious, prior to preparing a balance sheet of the past financial year, that certain parts of production are to be divested. The sales value will be less than the going concern value.)
2. For financial assets, depreciation for loss of value will also be possible when it is likely that it will not be permanent. (Example: bonds held as fixed assets, subject to day-to-day value fluctuations due to a change in interest structure based on public quoting.)
3. Value adjustments to current assets will be allowed, subject to wanting to prevent in accordance with careful commercial judgement that valuation of these assets must be changed due to variations in value in the near future (e.g. foreign currency debtors as of the balance sheet date of whom it is known that a rate of exchange loss will be sustained when payment is effected in the new year.)

X

X

X

Major extraordinary income and charges must be explained (Art. 1083 PGR).

X

X

The extent to which company income tax will affect the result of ordinary business activities and the extraordinary result.

X

X

S

M

L

Formation of undisclosed reserves on current and fixed asset items by value adjustments resp. depreciation for the application of tax regulations unless presented in the profit and loss account (Art. 1086 para. 2 PGR), separated by fixed and current assets in one item each

X

X

X

Should reasons for previous value adjustments and depreciation no longer exist, adjustment/depreciation should be reversed. Should no reversal be effected for tax reasons, any omitted reversal must be adequately commented in the notes on the annual accounts (= formation of undisclosed provisions. (Art. 1090 PGR)

1. Art. 1085 para. 2 sentence 3 PGR: The likely permanent extraordinary value reduction of fixed assets has ceased to exist.
2. Art. 1085 para. 2 sentence 4 PGR: The extraordinary value reduction of financial assets is no longer required.
3. Value reductions of current assets in compliance with Art. 1085 para. 3 PGR (market fluctuations)

X

X

X

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L

The extent to which the annual result is affected by the fact that during the financial year or in former financial years depreciation and value adjustments were only effected or maintained for tax reasons (value adjustments and depreciation exceeding a level required for operational reasons).

X

X

The level of considerable future tax charges due to such valuations must also be stated (Art. 1092 subpara. 5 PGR).

X

X

S

M

L

Explanations when figures in the previous year's balance sheet and profit and loss account are not comparable. See Art. 1067 para. 2 PGR. There is no duty to adjust (restatement!).

X

X

X

Variations from legal provisions in order to give a true and fair view.

X

X

X

Events after the balance sheet date (consistent presentation of important events, not only, being directly associated with the past financial year). See also Art. 1084 para. 1 subpara. 4 PGR for all companies and Art. 1096 para. 1 subpara. 1 PGR for "medium"-sized and "large" companies.

(X)

X

X

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L

Contingent liabilities:

Total each for guarantee, warranty liabilities, pledgings and general other contingent liabilities, if any (itemized by type of liability) (Art. 1055 PGR)

Disclosure of any real security provided for guarantees, warranty liabilities and pledgings and any other contingent liabilities (separately by type of liability). Liabilities to affiliated companies must be listed separately (Art. 1091 para. 2 subpara. 6 PGR).

X

X

X

Total financial liabilities, not included in the balance sheet (if important there will exist when total payment liabilities curtail the financial scope) (to affiliated companies to be listed separately). This also includes statement of positive and negative replacement values for derivatives and leasing liabilities not included in the balance sheet, liabilities from long-term purchase contracts, liabilities for the acquisition of tangible assets (pending orders), liabilities for granting loans in favour of third parties, liabilities due to agreed/specified major future repairs to be incurred after the balance sheet date (unless supported by the formation of a provision for expenditure (see Art. 1092 subpara. 3 PGR).

X

X

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L

Name, registered office, shareholding, shareholders' equity, profit of each company holding a minimum of 20 % share of the capital.

Reference to this list and location where it is deposited (= public register) must then be included in the notes on the annual accounts.

X

X

X

Company branch offices (see Art. 1096 para. 2 subpara. 5 PGR)

X

X

Name and registered office of the group's parent company, preparing consolidated annual accounts for the biggest circle of enterprises and its parent company, preparing consolidated accounts for the smallest circle of enterprises and in case of disclosure of consolidated annual accounts being prepared by the said parent company, the location from which these may be obtained.

(This is a matter of a subsidiary, disclosing information of its parent company and central management of the group. This will enable shareholders or creditors to obtain the required information in order to be provided with as reliable an idea of the company's financial status as possible.)

X

X

X

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L

Statement of any advances and credits granted, including rates of interest, essential conditions and any amounts repaid during the financial year and any commitments by way of guarantee in favour of "members". The duty to disclose applies to members of all administrative, management and supervisory bodies or any similar body. Details must be provided for each group of persons (see Art. 1092 subpara. 9 lit. b PGR).

X

X

X

Information referring to members of administrative, management and executive bodies, the supervisory board or any similar organ, for each group of persons separately.

1. Total remuneration (salaries, options, etc.) for their activities during the financial year, irrespective of whether paid out or converted into claims (such as pensions). In addition to remuneration for the financial year, any other remuneration must be stated when granted during the financial year but not having been stated in any annual accounts in the past;
2. Total remuneration (indemnities, pensions, etc.) to former members of the said administrative bodies and their surviving dependants, irrespective of whether paid out or converted into claims (such as pensions). In addition to remuneration for the financial year, any other remuneration must be stated that has been granted during the financial year but not been included in any annual accounts in the past. In addition, the amount of provisions created for this group of persons for current pensions and vested rights to future pension payments.

The information listed in lit. a) and b) need not be provided when remuneration paid to one specific member of these bodies can be assessed, based on this information. See also Art. 1092 subpara. 9 PGR.

X

X

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L

Average number of employees by groups.

X

X