Service-oriented - Die Schweizerische Post

3 Consolidation and accounting principles
Annual Report | Financial Report | Financial statements of Swiss Post Group
The consolidated financial statements of Swiss Post comprise the parent – Swiss Post – and all companies in
which Swiss Post holds over 50 percent of the voting rights, whether directly or indirectly, or where Swiss Post
is responsible for operational and financial management. These companies are fully consolidated. The consolidated
financial statements are based on the individual accounts of the parent and the subsidiaries, which in
turn are prepared in accordance with uniform principles as at a uniform closing date.
All intra­Group receivables, liabilities, expenses and income from intra­Group transactions and unrealized intercompany
profits are eliminated in the consolidation. Minority interests in the equity of consolidated companies
are presented as a separate item within equity. Minority interests in Group profit or loss are presented outside
the consolidated income statement.
Investments in associates where Swiss Post has 20 to 50 percent of the voting power and/or significant influence
but which it does not control are not consolidated, but accounted for by the equity method and reported
under Investments in associates. Joint ventures with 50 percent of the voting power in which Swiss Post
has significant influence but which it does not control are recognized and disclosed by the same method.
Under the equity method, the investment’s value is calculated based on the historical cost, plus or minus the
proportionate profit or loss since the acquisition date. Material holdings and transactions with these companies
are posted separately as items with associates. Investments under 20 percent are presented as financial
assets classified as “available for sale“.
Companies acquired during the reporting period are included in the consolidated financial statements from
the date on which Swiss Post assumes effective control. Companies that are sold are included until the date of
sale.
Please see Note 32 (Scope of consolidation) for an overview of Swiss Post subsidiaries and associates.
Currency translation
The consolidated financial statements of Swiss Post are drawn up in Swiss francs (CHF).
Transactions in foreign currencies are translated at the daily rate ruling at the transaction date. At the balance
sheet date, monetary assets and liabilities in foreign currencies are translated at the closing rate.
Assets and liabilities in balance sheets of fully consolidated companies that have been prepared in a foreign
currency are translated into Swiss francs at the closing rate. The income statement, cash flow statement and
other transactions are translated at the average rate for the reporting period. Translation differences arising
from the translation of balance sheets and income statements of foreign subsidiaries are taken directly to consolidated
equity.
Recognition of income
Income is recognized if it is clear that the economic benefits associated with the transaction will flow to Swiss
Post and if the economic benefits can be measured reliably.
Income from logistics services is recognized after sales deductions at the time the service is provided. Income
from the sale of products is recognized in the income statement if the risks and rewards incidental to ownership
of the products have been transferred to the purchaser. Swiss Post receives compensation from the
Swiss Confederation for public passenger transport services and the uncovered costs of newspaper transport,
which is recognized in the income statement on an accrual basis.
Commission and service income from financial services is recognized on an accrual basis. Interest income on
financial assets and interest expenses for customer deposits are accounted for under the accrual­based
accounting principle. The effective interest method is used for interest earned on held­to­maturity and available­for­sale
fixed­interest financial assets.
Cash
Cash includes cash holdings in Swiss francs and foreign currencies as well as asset­side cash in transit (cash
payments made at post offices which have not yet been credited to the PostFinance account (SIC) held at the
Swiss National Bank). Cash holdings are measured at face value.
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