SIX Exchange Regulation AG reaches an agreement with Achiko AG

SIX Exchange Regulation AG (SER) has concluded an agreement with Achiko AG with regard to breaches of IFRS accounting standards in the 2019 annual financial statements. As part of the agreement, the company has undertaken to correct the deficiencies in the 2020 IFRS annual financial statements and to make a donation of CHF 10,000 to the IFRS Foundation.

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In the 2019 IFRS annual financial statements, Achiko AG erroneously presented several non-cash transactions as part of the cash flow statement. In particular, the conversion of a promissory note into equity as well as the related accrued interest expenses paid in shares were included in the cash flow statement. As a result of these errors, the cash flow from financing activities was overstated by USD 3.3 million, whereas the cash flow from operating activities was understated by the same amount. However, the cash position of the company reported in the 2019 IFRS annual financial statements was not affected by these errors.

Furthermore, in 2019 Achiko AG entered into a share subscription agreement. However, no binding contractual agreement existed as of 31 December 2019. Achiko AG incorrectly presented a receivable from this agreement and a corresponding increase in share capital and share premium totalling to USD 1.2 million in the balance sheet and the statement of changes in equity. As a result of this error, total assets were overstated by USD 1.2 million and total equity was overstated by the same amount as of 31 December 2019.

As part of the agreement with SER, Achiko AG has undertaken to correct and disclose these errors as well as to amend the disclosures with regard to material uncertainties about the entity’s ability to continue as a going concern in the 2020 IFRS annual financial statements. In addition, the company will make a donation of CHF 10,000 to the IFRS Foundation pursuant to the agreement reached with SER.

The investigation initiated by SER against Achiko AG in connection with the 2019 IFRS annual financial statements has been terminated upon completion of said agreement.

If you have any questions, please contact
Hrvoje Tkalcec, Head Communications & Media Relations.
Phone: +41 58 399 2267
Email: ser_media@six-group.com

SIX Exchange Regulation AG is a legally independent company of SIX Group and of one the Regulatory bodies of the SIX trading venues. It performs the functions assigned under Swiss federal law and enforces the rules laid down by the Regulatory Board, and monitors compliance with legal and regulatory requirements. As part of its diverse remit, SIX Exchange Regulation AG submits proposals for sanctions to the Sanctions Commission or can enact sanction notices. SIX Exchange Regulation AG consists of the divisions Listing & Enforcement, responsible for regulating issuers, and Surveillance & Enforcement, which monitors trading.
www.ser-ag.com

SIX provides and operates stable and efficient infrastructure for the Swiss and Spanish financial centers, thus ensuring access to the capital markets and the flow of information and money between financial market players. As a global provider of financial information, SIX delivers high-quality reference, pricing, corporate actions, and ESG data and provides regulatory services and indices to clients around the world. The company is owned by its users (more than 120 banks) with a workforce of 4,160 employees and a presence in 19 countries.
www.six-group.com

Media Release

SIX Exchange Regulation AG reaches an agreement with Achiko AG