The SWX Swiss Exchange has pronounced a reprimand with related publication against Leclanché S.A., Yverdon-les-Bains, for violation of the provisions of Swiss GAAP ARR. The SWX reprimand pertains to an incomplete disclosure in the company’s income statement as well as the lack of a balance sheet.
The 2005 semi-annual report of Leclanché S.A. (Leclanché) was not in full compliance with the provisions of Swiss GAAP ARR (ARR). For their fiscal years starting on or after 1 January 2005, companies that apply ARR had to adopt for the first time the revised version of ARR 12 "Interim financial report". For that reason, SWX declared in a communiqué that the proper application of ARR would be one of the areas of focus in its enforcement activities surrounding the review of financial reporting in 2005.
The disclosures made in the 2005 semi-annual report of Leclanché did not include all of the subtotals required by ARR. The missing items, in particular pre-tax and after-tax earnings, are key figures that are of importance in investors’ ability to asses the profitability of a company. Moreover, the company published no balance sheet, thereby breaching another ARR requirement. In the meantime, the company has published the missing information on its Website.
The inadequate disclosures in Leclanchés 2005 semi-annual report represent a breach of ARR and thus the provisions of the Listing Rules. For that reason, the Executive Committee of the SWX Admission Board has pronounced a reprimand with related publication against Leclanché.
Periodic financial reporting in compliance with applicable accounting standards represents an integral part of the information that contributes to transparent trading as stipulated by the Stock Exchange Act and the Listing Rules. One of the regulatory tasks of SWX is to ensure enforcement of the transparency rules imposed on issuers.
Information on accounting standards can be accessed at: http://www.swx.com/admission/being_public/accounting_en.html
Previous sanctions issued by SWX with regard to accounting can be accessed at: http://www.swx.com/admission/being_public/sanctions/accounting_en.html