SIX Exchange Regulation has issued a reprimand to Bellevue Group for 'several errors' found in its 2016 annual statements.
The regulator said the firm has accepted the sanction notice for incorrect recognition of the foreign currency translation, the inadequate liquidity risk disclosures and insufficient fair value disclosures.
In doing so Bellevue Group went against the requirements of Interational Financial Reporting Standards (IFRS) in its 2016 annual financial reports.
This was as it erroneously stated a gain from foreign currency translation amounting to CHF 672,000 directly in equity through 'other comprehensive income'.
SIX Exchange Regulation said this forex gain should have been acknowledged in the income statement.
The error resulted in the overstatement of the net loss for the year 2016 by CHF 672 000, while the basic/diluted loss per share was overstated by CHF 0.05 (both approximately 51%).
The regulator also said the maturity analysis for financial liabilities was also 'inadequately disclosed'.
'In this regard, the liability from the contingent consideration in the amount of CHF 21.3 million was erroneously disclosed as being due in full within 3 months. In fact, a portion of this liability is contractually due only within 1 to 5 years.'
Also in its 2016 financial statement, Bellevue Group did not include the fair value of the liability arising from the contingent consideration to level 3 in the disclosure of the fair value hierarchy.
Further to this, the firm didn’t disclose in enough detail the significant unobservable inputs used in the fair value measurement and reconciliation describing the changes in fair value between the balance sheet dates.
SIX Exchange Regulation said the errors were already corrected in the 2017 interim financial statements and will be corrected in the 2017 annual financial statements.