Fair value measurement of SME investments

The case – the solution

The case

Brau AG is a capital market-oriented company with its registered office in Zurich. The company is listed in the domestic standard of the Swiss stock exchange and applies the national accounting standard (Swiss GAAP FER). A change to the international standard is planned, and the accounting system is also to be changed to IFRS.

The company holds direct stakes of up to 10% in a large number of its customers. Brau AG intends to hold these shares in the long term and thus secure the distribution channel, among other things. According to the previously applicable regulations, all participations are valued at (amortised) acquisition cost (ARR 2.12). Brau AG would like to maintain this simple and straightforward procedure under IFRS as well.

Read the full article from the Zeitschrift für Internationale Rechnungslegung (IRZ) issue 10|2019 (in German) here.