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Consolidated financial statements

Notes to the consolidated financial statements

Information to the report

This section explains the basis for the preparation of the consolidated financial statements and provides a summary of the main general accounting principles as well as management assumptions and estimates.

Basis for the preparation of the consolidated financial statements

The consolidated financial statements of Georg Fischer Ltd (GF) have been prepared in accordance with all of the current guidelines of the Accounting and Reporting Recommendations (Swiss GAAP FER) and, furthermore, with the provisions of the Listing Rules of SIX Exchange Regulation and with Swiss company law. The consolidated financial statements are based on the financial statements of GF and all GF Corporate Companies for the year ended 31 December, prepared in accordance with uniform corporate accounting principles.

Due to rounding, numbers presented throughout the consolidated financial statements may not add up precisely to the totals provided. All ratios, percentages and variances are calculated using the underlying amount rather than the presented rounded amount. A value of 0 represents an amount rounded to 0. A blank value represents an actual value of 0.

Accounting principles

The consolidated financial statements have been prepared in accordance with the historical cost method with the exception of marketable securities and derivative financial instruments, which are measured at actual value. 

Changes in accounting principles

In the year under review, the Swiss GAAP FER accounting principles remained unchanged.

In November 2021, the Swiss GAAP FER Commission has approved the new recommendation "Swiss GAAP FER 28 – Government Grants" (FER 28) and in May 2022 the revised recommendation "Swiss GAAP FER 30 – Consolidated financial statements" (FER 30). Both recommendations are applicable to annual financial statements beginning on 1 January 2024. Early adoption is possible.

The provisions in FER 28 define the accounting treatment and disclosure of government grants. Based on an assessment, GF Corporation assumes that the application of FER 28 will not have a material impact on the consolidated financial statements. GF Corporation early adapts this standard for annual financial statements beginning after 1 January 2023.

The amendments in FER 30 specify in particular the accounting treatment of step-acquisitions, goodwill and translation differences related to equity-like-loans. Under the new recommendation, intangible assets, which have not been recognized previously by the acquired subsidiary and are relevant to the decision to acquire a company, are to be identified and recognized. For the initial application of FER 30, new provisions related to goodwill are not applied retrospectively. GF Corporation does not early adapt the new provisions.

Scope and principles of consolidation

The scope of consolidation includes GF and all GF Corporate Companies, which GF controls directly or indirectly by either holding more than 50% of the voting rights or by otherwise having the power to control their operating and financial policies (GF and these GF Corporate Companies are also collectively referred to as the GF Corporation). These GF Corporate Companies are fully consolidated; assets, liabilities, income, and expenses are incorporated in the consolidated financial statements. Intercompany balances and transactions are eliminated upon consolidation. Minority interests are presented as a component of consolidated equity in the consolidated balance sheet and consolidated net income in the consolidated income statement. Gains arising from intercompany transactions are eliminated in full. Capital consolidation is based on the purchase method, whereby the acquisition cost of a GF Corporate Company is eliminated at the time of acquisition against the fair value of net assets acquired, with the remainder recorded as goodwill that is subsequently offset against the consolidated equity. Identifiable intangible assets, which were previously not recognized by the acquired subsidiary, are not capitalized. In the event of an increase in ownership in a GF Corporate Company, any difference between the purchase price and the acquired equity is recognized as goodwill. In the event of a disposal, the pro rata goodwill is recognized in profit or loss. 

Joint ventures in which the GF Corporation exercises joint control together with a joint venture partner are proportionately consolidated.

Companies in which GF has a minority interest of at least 20% but less than 50%, or over which it otherwise has significant influence, are accounted for using the equity method and included in the consolidated financial statements as investments in associates. Investments with less than 20% voting rights are accounted for at actual value and presented under other financial assets.

Foreign currencies

GF Corporate Companies prepare their financial statements in their functional currency. Assets and liabilities held in other currencies are converted at the spot rate on the balance sheet date. Foreign exchange gains and losses resulting from transactions and from the conversion of balance sheet items into the functional currency are reported in the income statement.

The consolidated financial statements are prepared and presented in Swiss francs. For consolidation purposes, the financial statements of the GF Corporate Companies that report in a currency other than Swiss francs are translated into Swiss francs as follows: balance sheets at year-end rates, income and cash flow statements at average rates for the year under review. Any translation differences resulting from the translation of the balance sheets and income statements or from the translation of corporate equity-like-loans denominated in foreign currencies are recognized in equity. Upon the divestment, liquidation or closure of a foreign GF Corporate Company or a part of the business, the related cumulative translation differences are recycled to the income statement.

GF Corporate Companies in hyperinflationary economies

GF Corporation considers that Turkey became a hyperinflationary economy in June 2022, because, among some other economic factors, the last three years' cumulative inflation in Turkey exceeded 100% measured by the consumer price index published by Turkish Statistical Institute.

The GF Corporation has two GF Corporate Companies in Turkey and analyzed the impact of hyperinflation on the consolidated financial statements. The potential adjustments resulting from the application of inflation accounting according to international accounting standards do not have a material impact on the consolidated balance sheet and consolidated net profit. Hence, no adjustment was recorded. The application of inflation accounting would have increased balance sheet assets by 1% and reduced net profit by 2%.

Other valuation principles

Other relevant valuation principles, if relevant for the understanding of the valuation of the respective asset or liability, are reflected in the notes.

Management assumptions and estimates

The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities, and contingent liabilities at the balance sheet date. If in the future such estimates and assumptions, which are based on management’s best judgment at the balance sheet date, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. Management has identified the following assumptions and estimates to be of special relevance to the presentation of the consolidated financial statements:

Management assumptions and estimates


Recoverability of property, plant, and equipment


Recoverability of goodwill


Valuation of provisions


Recoverability of financial assets


Valuation of income taxes


Key figures not defined by Swiss GAAP FER

GF uses certain key figures to measure its performance that are not defined by Swiss GAAP FER. As these key figures are not defined by Swiss GAAP FER, there might be limited comparability to similar figures presented by other companies. Explanations of these key figures and the reconciliation of certain key figures can be found on the GF website: Alternative Performance Measures (APMs).

"Free cash flow" is reported separately in the cash flow statement and consists of cash flow from operating activities together with cash flow from investing activities. It is defined as:

+/– Cash flow from operating activities
+/– Cash flow from investing activities

"Free cash flow before acquisitions/divestments" excludes the cash effective movements arising from acquisitions/divestments. It is defined as:

+/– Free cash flow
+/– Cash flow from acquisitions/divestments