SIX Exchange Regulation, a division within SIX Swiss Exchange Ltd operator SIX Group, issued a sanction notice to Swiss investment bank Bellevue Group AG for a number of errors in its financial statements for fiscal 2016, including the incorrect recognition of the foreign currency translation, inadequate liquidity risk disclosures and breaches of International Financial Reporting Standards.
The group erroneously mentioned a direct income of CHF672,000 in equity under "other comprehensive income," which led to the group overstating its net loss while its basic/diluted loss per share was overstated by CHF0.05.
The maturity analysis for liabilities from contingent consideration worth CHF21.3 million was disclosed as being contractually due in three months, instead of between one and five years.
Further, Bellevue allocated a fair value of the liability arising out of the contingent consideration to level 3, which was excluded in its fair value hierarchy disclosure.
The effects of possible changes in unobservable inputs were also incorrectly disclosed by the investment bank, the SIX Group division said.
Bellevue has accepted the sanction notice and corrected the errors in its interim report and will correct them in its 2017 annual report.