Notes to the annual financial statements
Basis of preparation
The statutory financial statements of Aduno Holding AG have been prepared in accordance with the requirements of the Swiss Code of Obligations (SCO). Unless stated otherwise, all assets and liabilities are reported at their nominal value. All figures in the annual financial statements are rounded in accordance with commercial principles. All financial information presented in Swiss Francs has been rounded to the nearest thousand, except when indicated differently.
The reporting period begins on 1 January and ends on 31 December of the calendar year.
Recognition of business transactions
Business transactions are presented according to the settlement date principle.
Foreign currency translation
The translation of foreign currency is carried out in accordance with the closing rate method. At year end all financial assets and liabilities in foreign currencies are translated at the year-end rate according to the exchange rate list of Bloomberg Corporation (market data provider: Swiss Federal Department of Finance).
Investments in other Group companies
The participations are reported at initial cost.
Impairments and provisions
Provisions, i.e. individual or general reserves for bad debts, are accrued for all the risks identified at the balance sheet date in accordance with the caution principle. Currently no risks have been identified.
Income taxes are calculated and reserved based on the results of the financial year.
Extraordinary and prior period income
The liquidation of deferrals formed in the previous business year resulted in a CHF 86,400 reduction in expenses not related to the period under review.
Extraordinary and prior period expenses
The extraordinary and prior period expenses consist of the divestment loss of CHF 3.1 million on the sale of the subsidiary Vibbek AG as at 5 December 2018 as well as an additional charge of TCHF 51 levied by the Swiss Federal Tax Administration related to a VAT audit from 2009 until 2013.
As at 31 December 2018 the following guarantees exist:
- –Rental liabilities of Aduno Holding AG for its premises in Business Center Andreaspark in Zurich, amounting to CHF 1.3 million (2017: CHF 1.3 million)
- –Guarantees for prepayments of credit card owners of Viseca Card Services SA, amounting to CHF 15 million (2017: CHF 14.5 million)
- –Guarantees for prepayments of prepaid credit card owners of Viseca Card Services SA, amounting to CHF 66.0 million (2017: CHF 66.0 million)
- –Instalments option of consumer credit customers of Viseca Card Services SA, amounting to CHF 0.5 million (2017: CHF 0.5 million)
Rental liabilities of Viseca Card Services SA for its premises in Bedano, amounting to CHF 0.2 million (2017: CHF 0.2 million)
- –Warranty claims to consumer finance customers of cashgate AG, amounting to CHF 0.5 million (2017: CHF 0.5 million)
- –Keep-well guarantee in favour of Aduno Finance AG, amounting to CHF 2,600 million (2017: CHF 2,600 million)
- –Rental liabilities of cashgate AG for its premises in Geneva, Lausanne and Neuchâtel, amounting to CHF 0.1 million (2017: CHF 0.1 million)
Unsecured bond issues
Effective 1 January 2014 Aduno Holding AG resigned from the VAT group of Viseca Card Services SA. The company remains mutually liable for any VAT obligations the Aduno Group has towards the Swiss Federal Tax Administration. It concerns taxes which eventuated up to 2013 and are significant for a period of five years.
Information on the performance of a risk assessment
Aduno Holding AG is part of the Group-wide risk management system of the Aduno Group. Therefore, the Board of Directors of Aduno Holding AG decided not to perform an individual risk assessment for the company.
The Board of Directors of Aduno Holding AG has, as parent company, delegated the execution of the risk assessment to the Group’s Executive Management. The Executive Management maintains a risk assessment board, which records any material risks, assesses their importance and probability of occurrence and, if required, defines measures and monitors the processing thereof. The risk analysis is regularly confirmed by the Board of Directors of the Group.
In order to ensure that the company’s Annual Financial Statement comply with the underlying accounting principles and proper corporate reporting, the company has introduced further operative internal control and steering systems, which are examined on a regular basis. For accounting and valuations, assumptions and estimates are made regarding the future. The estimates and assumptions that represent a significant risk in the form of a major adjustment to the carrying amounts of assets and liabilities in the coming financial year are presented in the notes for the individual positions. Overall, no risks were identified in the financial year just ended that could lead to a material correction in the assets, financial situation and results of operations of the company and/or group of companies as presented in the Annual Financial Statements.
To improve the risk assessment, an Internal Control System (ICS) has been introduced that is reviewed and updated on an ongoing basis. All the risk-relevant processes of Aduno Holding AG are listed in the ICS. This system is reviewed by the auditors as part of the annual audit.
Zurich, 11 April 2019
Chairman of the Board of Directors
Chief Executive Officer
Chief Financial Officer