SIX Exchange Regulation published a press release today, announcing that it has filed a petition with the sanction commission against Meyer Burger Technology Ltd (SIX Swiss Exchange: MBTN) regarding the application and interpretation of Swiss GAAP FER accounting rules in conjunction with the discontinuation of activities at DMT (Diamond Materials Tech, Inc.) and the treatment of purchases in its own 5% Meyer Burger straight bond.
Meyer Burger rejects the reproach by SIX Exchange Regulation in its entirety.
The Company prepared the financial statements for fiscal year 2016 as well as for the first half-year 2017 in accordance with the accounting standards of Swiss GAAP FER. Swiss GAAP FER is a standard based on principles that requests case-related interpretations, accounting and disclosures in accordance with the Swiss GAAP FER framework, if Swiss GAAP FER does not explicitly and ultimately govern a particular question.
The procedure and discretionary decisions that Meyer Burger applied in its fiscal year 2016 and half-year 2017 financial statements concerning the recognition and presentation of the events mentioned below were all applied according to the framework concept of Swiss GAAP FER and closely monitored and audited by the company’s auditors PricewaterhouseCoopers Ltd. An additional internationally recognized audit firm confirmed the approach and discretionary decisions taken by Meyer Burger as justifiable and in compliance with Swiss GAAP FER.
Discontinuation of activities / closure of DMT in the fiscal year 2016 consolidated financial statements: Meyer Burger decided in its consolidated financial statements 2016 to value the assets as well as liabilities and equity of DMT as at 31 December 2016 at residual values, as a continuation of DMT was no longer planned. As requested by the Swiss GAAP FER framework concept, the valuation at residual value was transparently disclosed and explained in the notes to the financial statements. The effects of the changes from the valuations at going concern to residual value were recorded in the extraordinary result (CHF -11.9 million). In Meyer Burger’s view, the closure of DMT undoubtedly had extraordinary character in the meaning of Swiss GAAP FER 3/22 too. Accordingly, the company used the possibilities under Swiss GAAP FER to record charges and earnings for the DMT case in the extraordinary result.
