Annual Report 2016

Appendix | FAOA 2016
57
Notes to the 2016 financial statements
1. Operating activities
The FAOA is a public-law institution
of the Federal Government and has
its registered office in Berne. It serves
as a licensing body and administers a
public register of the individuals and
firms who provide audit services as
defined by the AOA. Further, it oversees
audit firms who provide audit
services to public interest entities.
The FAOA conducts its oversight independently,
organises itself, and
finances itself entirely from the fees
paid by licensed individuals and firms
and the charges paid by state-regulated
firms. The FAOA maintains its own
accounts.
Since 1 September 2012 the FAOA
has exercised oversight over the
financial audits of listed banks,
insurance companies and collective
investment schemes. In addition, since
1 January 2015 the FAOA has had
sole oversight authority over audit
firms. This applies both to the financial
and regulatory audit.
As at 31 December 2016 the FAOA
employed 30 employees, representing
26 full-time equivalents (unchanged
from prior year).
2. Accounting policies
a. Introduction
These financial statements of the
FAOA are prepared in line with the International
Public Sector Accounting
Standards (IPSAS) and in accordance
with Article 957 f. of the Code of Obligations
(Art. 35 para. 2 AOA). The
accounting policies of the FAOA differ
from the IPSAS in the pensions area:
IPSAS 25 requires pension costs
to be expensed in the period in
which a «current obligation» arises.
IPSAS also requires comprehensive
disclosure of employee
benefit plans in the notes. In these
financial statements the employer
savings and risk contributions paid
to the FAOA employee benefit
plans are expensed. The surplus
or deficit that might arise from an
actuarial valuation is not accounted
for. The FAOA commissioned
actuarial valuations as per
31 December 2015 and 31 December
2016. The net pension liability
calculated by Aon Schweiz AG is
not accounted for however, asforeseen
in IPSAS 25, but rather
disclosed as a contingent liability
(see Note 22).
These financial statements are entity
financial statements for the financial
year comprising calendar year 2016
with a balance sheet date of 31 December
2016 (including comparatives).
The reporting currency is Swiss
francs (CHF).
Unless otherwise stated, assets and
liabilities are valued at historical or
production cost, which is normally
the nominal value. Expenses and
revenues are booked in the period in
which they occur.
b. Cash at bank and in hand
Cash at bank and in hand comprises
petty cash, current accounts at
financial institutions and an investment
account at the Federal Finance
Administration (FFA). Under Art. 36
para. 1 AOA the FAOA is obliged to
invest excess funds with the Federal
Government.
The amounts are stated at nominal
value.
c. Receivables relating to services
Receivables are stated at nominal value
after allowance for possible writedowns.
d. Work-in-progress
Work-in-progress relating to inspections
is valued using the applicable
daily rates per Art. 39 para. 2 AOO.
e. Tangible fixed assets
Tangible fixed assets are accounted
for at cost less required write-downs.
Depreciation is calculated on a linear
basis over the expected useful life.
Asset category
Furniture and
furnishings
Office
equipment,
IT equipment
(hardware)
Fixtures and
fittings
Useful life
(years)
10
3
10
The amounts stated in the financial
statements are rounded to the nearest
Swiss franc and can therefore include
immaterial rounding differences.