Ifrs Reporting

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1a) Are the disclosures in the Swiss annual report really unnecessary?
1b) what social, economic, and institutional factors in Switzerland Might be causing the inclusion of these disclosures?
1c) Describe on of the differences in financial reporting between a Swiss company and the reporting in another country?
Rob Carpenter senior manager at a prestigious accounting firm, recently transferred to the international division of acquisition and mergers. Mr. Carpenter was recently asked to make a recommendation regarding Nestle. Mr. Carpenter unfamiliar with the accounting in Switzerland has realized substantial differences between Swiss and U.S. accounting standards. Surprisingly, there are many “unnecessary” details in
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The reason for this kind reporting is largely due to the nature of their main capital provider, the bank. The bank is not necessarily concerned with their positive future outlook, they are likely more concerned with their debt to income ratio, equity, and liabilities. This kind of accounting information gives a better estimate if the company will be able to sufficiently meet their new obligation in the form of bank financing.
In Switzerland, a company such as Nestle dedicates a certain amount of information in its annual report to the value it generates to society at large. Surprisingly, their annual report seems to lend itself to the practices of equity-oriented countries likely due to its international presence and immense exposure to the United States. In any event, their annual report discloses their compliance with applicable laws and international conventions in order to ensure the activities protect the environment (Nestle Annual Report 2010, p. 8). Furthermore, Nestles’ report includes communication reemphasizing their dedication and efforts in the issue areas of human rights, labor practices, the environment and anti-corruption.
The practice described above may be indicative of large blue-chip companies in Switzerland which is found common amongst members of the SMI Family, which is the best-known SIX Swiss Exchange index family, comprises the 50 largest
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