2 Summary of significant accounting policies
2.1 Basis of preparation
The financial statements of Tecan Group Ltd. were prepared according to the provisions of the Swiss Law on Accounting and Financial Reporting (32nd title of the Swiss Code of Obligations). They are a supplement to the consolidated financial statements (pages 83 through 130) prepared according to International Financial Reporting Standards (IFRS). While the consolidated financial statements reflect the economic situation of the Group as a whole, the information contained in the Tecan Group Ltd. financial statements (pages 132 through 140) relates to the ultimate parent company alone. The retained earnings reported in these financial statements provide the basis for the decision regarding the distribution of earnings to be made during the Annual General Meeting of Shareholders.
These financial statements have been prepared in accordance with the new provisions on accounting and financial reporting of the Swiss Code of Obligations introduced on January 1, 2013. The previous year (2014) has been reclassified and is fully comparable with the current year (2015), except for the valuation of investments in subsidiaries (see summary of significant accounting principles). Due to the preparation of consolidated financial statements for the Group the financial statements of Tecan Group Ltd. are exempted from the disclosure of a management report, a cash flow statement and extended information in the notes.
2.2 Accounting and valuation principles
2.2.1 Financial assets
Financial assets (cash and cash equivalents, loans and receivables) are valued at acquisition costs less adjustments for foreign currency losses and any other impairment of value.
2.2.2 Investments in subsidiaries
Investments are valued at historical costs less any impairment of value. In the previous year the company applied the group-valuation principle for investments. Due to the introduction of the single-asset-valuation principle for all assets and liabilities in connection with the new provisions on accounting and financial reporting, the Company had to recognize an impairment loss on investments in 2015 amounting to CHF 9.0 million.
Provisions are recognized when the company has a present legal or constructive obligation as a result of past events, it is probable that the outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made.
2.2.4 Treasury shares
Treasury shares are recognized at acquisition cost and deducted from shareholders’ equity at the time of acquisition. In case of resale, the gain or loss is recognized through income statement.