Today the board of Burkhalter Holding (Ticker: BKRN) announced the switch from IFRS to Swiss GAAP FER. The main reasons given were the treatment of pension plans and of goodwill and in a further remark the steady increase of rules (read: making accounting more tedious and expensive with IFRS).
They can now offset the equity capital, which will sink, with goodwill. As they no longer need to adhere to IAS 19 the employee benefits will also free up equity capital.
The adjusted EPS will be lower: CHF 4.29 instead of CHF 4.53. Same with EBIT: CHF 29.3m instead of CHF 30.9m. The fall is due to the discount rate changing from the market rate (IAS 19) to a higher calculatory rate (as for tax calculations for example) for the employee benefit plans.
Due to the change Burkhalter Holding will have to move from the Main Standard to the Domestic Standard.
Media Release: Burkhalter-Holding_Switch_to_Swiss_GAAP_FER_from_IFRS