2.1Significant accounting policies

2.1.1 Principles

The consolidated financial statements of the Züblin Group have been prepared in accordance with International Financial Reporting Standards (IFRS). The consolidated financial statements comply with Swiss statutory regulations as well as with Article 17 of the Directive on Financial Reporting issued by the SIX Swiss Exchange Regulation. The consolidated financial statements have been prepared on the basis of historical costs, except for investment properties and derivative financial instruments, which are measured at fair value.

The consolidated financial statements have been prepared in Swiss Francs (CHF), the Züblin Groupʼs reporting currency. All amounts are given in thousands of Swiss Francs (kCHF) unless otherwise stated. The individual financial statements of the companies included in the consolidated financial statements apply the same accounting and valuation principles and have the same balance sheet date.

The consolidated financial statements of the Züblin Group for the financial year ending 31 March 2023 were approved by the Board of Directors on 16 May 2023. The Annual General Meeting, which in accordance with the Swiss Code of Obligations is responsible for approving the consolidated financial statements, will be held on 22 June 2023.

2.2Amendments to accounting principles

2.2.1 Amendments implemented in the current financial year

The present consolidated financial statements are based on the accounting and valuation principles of the previous year. No new relevant standards and interpretations have been introduced since 1 April 2022.

2.2.2 Future amendments to accounting policies

The following new or revised standards and interpretations are to be applied at the earliest for financial years beginning on 1 April 2023:




– IAS 12: Limitation initial recognition exception (IRE)


from 1.1.2023

– IFRS 17: Insurance contracts (incl. amendments)


from 1.1.2023

– IAS 1: Classification of liabilities as current or non-current (amendment)


from 1.1.2023

– IAS 1: Disclosure of accounting policies (amendment)


from 1.1.2023

– IAS 8: Definition of accounting estimates (amendment)


from 1.1.2023

– IFRS 16: Lease liability in a sale and leaseback


from 1.1.2024

None of the new or revised standards and interpretations were adopted early in the preparation of the financial statements of the Züblin Group.

Without systematic analysis no significant effects on reporting are expected at this time.

2.3Significant discretionary decisions and estimation uncertainties

The preparation of the consolidated financial statements requires estimates and assumptions by the company’s Management. This affects the recognition and measurement of assets, liabilities, income and expenses, disclosures of contingent liabilities and other disclosures in the consolidated financial statements. The estimates and assumptions are based on past experience and various other factors that appear plausible under the current circumstances. If in the future such estimates and assumptions deviate from the actual circumstances, the original estimates and assumptions in that reporting year will be modified accordingly.

The significant discretionary decisions and estimation and uncertainties impacting the financial statements of the Company are disclosed in the notes as follow:

Note 4.6 Income taxes

Note 5.1 Investment properties

2.4Consolidation principles

2.4.1 Method of consolidation

The consolidated financial statements comprise the financial statements of Züblin Immobilien Holding AG and its subsidiaries for the financial year ending on 31 March. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

Subsidiaries are consolidated from the date of acquisition, i. e. from the date on which the Group obtains control of the subsidiary.

Business combinations are accounted for using the acquisition method. The cost of an acquired business is equal to the total consideration transferred measured at fair value at the date of acquisition plus non-controlling equity interests. The acquirer measures the non-controlling equity interests either at fair value or as the proportionate share of the identifiable net assets of the acquired company. The costs incurred in the course of the business combination are recognized as an expense.

2.4.2 Scope of consolidation

The composition of the group of consolidated entities is set out in note 1.2 List of Group companies. There were no changes in the scope of consolidation in the financial year.

2.4.3 Translation of foreign currencies

Foreign currency transactions

All transactions are converted using the exchange rate prevailing on the date of the transaction. Monetary items denominated in foreign currencies are recognized at the rate prevailing on the balance sheet date. Non-monetary items valued at historical cost are converted using the rate prevailing on the transaction date, and non-monetary items measured at fair value are converted using the rate applicable as of the date of the calculation of fair value. Differences arising from conversion to closing rates are recognized in the income statement.

Foreign subsidiaries

The conversion of the financial statements of consolidated Züblin Group companies that are prepared in foreign currencies is performed on the basis of the functional currency concept. As of the balance sheet date, the financial statements of the consolidated Züblin Group companies are translated from the functional currency into the reporting currency. The financial statements of foreign subsidiaries are converted as follows: the balance sheet is converted at the year-end rates, while income and expenses are converted at the average exchange rates for the reporting year. The effects of these conversions are recorded directly in the consolidated statement of comprehensive income in the position “Currency translation adjustment”. Conversion differences relating to Züblin Group internal loans, where repayment is not anticipated in the foreseeable future, or is unlikely, and which are consequently qualified as net investments in a foreign company, are also recognized directly in the consolidated statement of comprehensive income in the position “Currency translation adjustments”.

As in the previous year, all foreign subsidiaries currently have no operating activities. The functional currency is the Swiss Franc.

Balance sheet rate CHF/EUR as of 31.3.2023: CHF 0.9978 (previous year: CHF 1.0294)
Average rate CHF/EUR for 1.4.2022-31.3.2023: CHF 0.9937 (previous period: CHF 1.0674)

2.5Accounting and valuation principles

2.5.1 Income statement

Rental income

Income reported from real estate operations is comprised exclusively of rental income after consideration of vacancies. For leases that are classified as operating leases, rents are recognised on an accrual basis over the term of the lease. Currently, Züblin does not hold any leases that are classified as finance leases. Where tenants are granted significant rent incentives (e.g. tenant-specific improvements or rent-free periods), the equivalent value of the incentive is recognised as an adjustment to rental income on a straight-line basis over the total lease term.

Real estate expense

Real estate expenses include costs directly associated with the individual properties, and include costs for administration, bad debt losses, insurance, non-recoverable service charges, legal costs, taxes and other fees.

Maintenance and repairs

Maintenance and repairs includes the cost of maintenance and repairs of investment properties incurred during the financial year and is charged to the income statement. Expenditures that result in an increase in value are capitalized and reflected in the valuations.

Personnel expenses

Personnel expenses includes salaries and social epenses as well as the compensation of the Board of Directors.

Administrative expense

All expenses that cannot be allocated directly to individual investment properties are recorded as administrative expenses. Additionally, administrative costs include fees for legal, tax and other advisory services, appraisal and audit services, other taxes (e. g. capital taxes) as well as other expenses of an overhead nature.

Result from the sale of investment properties

The result from the sale of investment properties represents the difference between net sales proceeds and the latest reported market value of the individual property, including investments up to the date of the sale. The result is realized at the time of the transfer of control, which is usually the date on which the contract is signed in the presence of the notary or the date of registration in the land register.

Change in market value of investment properties

Changes in the market value of investment properties are recorded in the income statement in accordance with IAS 40.

Financial expense

Financial expenses primarily include interest expense on debt financing, including the interest impact from derivative financial instruments. All financial expenses are accrued and recognized in the income statement on the basis of the effective interest method.

Income taxes

Income taxes are comprised of current and deferred taxes. Income taxes are recorded directly in the income statement unless they are incurred as part of a transaction related to the consolidated statement of comprehensive income. In such cases, the income taxes are recorded directly in the consolidated statement of comprehensive income in a manner consistent with the underlying transaction. Current taxes are comprised of taxes due on the taxable earnings of the Company calculated using the tax rate in effect as of the balance sheet date, together with capital gains tax on the sales of assets and adjustments to tax liabilities or receivables from previous periods. With regard to deferred taxes, we refer to Deferred Tax tax assets and liabilities in note 2.5.2.

2.5.2 Balance sheet

Fair value hierarchy

The valuation of the investment properties and the financial instruments is based upon the the three-level fair value hierarchy, which is as follows:

  1. Level 1 – Valuation based upon observable market prices for specific financial instruments.
  2. Level 2 – Valuation based upon observable market prices for similar instruments or using valuation models which are based upon input parameters observable on the market.
  3. Level 3 – Valuation based upon models with significant input parameters which have a material impact on fair value and are not observable on the market.

Investment properties

In accordance with revised IAS 40 investment properties are reported at fair value.

For disclosure on the valuation method and critical accounting estimates and judgements see also note 5.1.

Purchases are recorded at cost including ancillary cost. After initial recognition, investment properties are reported at market value. The market values are determined every six months by an external, independent property valuation company. The valuations are conducted using the discounted cash flow method according to the “Highest and Best Use” concept in accordance with IFRS 13. The change in market value or the difference to the acquisition value at initial valuation is recognised in the income statement. Expenses incurred after the purchase of the property are capitalized if it is likely that future economic benefits will accrue to the Company. All other maintenance and repair costs are recognized in the income statement.

Investment properties are derecognized if they are sold or are no longer available for permanent use. Profits or losses on the disposal of investment properties are recognized in the income statement in the year of disposal.

There were no changes in valuation criteria or processes relating to IFRS 13 during the reporting period and there were no re-classifications within the fair value hierarchy. The investment properties recognized at fair value as at 31 March 2022 continue to qualify as level 3 of the fair value hierarchy as at 31 March 2023.

Investment properties held for sale

In accordance with IFRS 5, investment properties held for sale are reported in the balance sheet under current assets as a separate item “Investment properties held for sale”. A property is reclassified under this item if the following criteria are met:

  1. The Board of Directors has formally resolved to dispose of the property
  2. There is an intention to sell the property in the short term and it is being actively marketed
  3. A judgment from Group Management that there is a high probability of the conclusion of the transaction within the next twelve months.

After reclassification the properties continue to be valued in accordance with the valuation procedures of investment properties as described above.


Furnishings, fixtures and equipment are stated at cost less accumulated depreciation. Office refurbishments and office furnishings are subject to straight-line depreciation over ten years and five years respectively, and IT equipment over three years. An evaluation is performed at every balance sheet date in order to determine whether there are indications that an impairment of the recorded value of furnishings and equipment might be necessary. If evidence exists that the book value is no longer realizable, the difference between the book value of the asset and the realizable value is written off.

Deferred tax assets and liabilities

Deferred taxes are calculated using the Balance Sheet Liability Method and reflect temporary differences as of the balance sheet date between the book value of assets and liabilities in the consolidated financial statements and the underlying tax accounts. The calculation of deferred tax assets and liabilities is based upon local tax rates and regulations substantially enacted as of the balance sheet date. For Swiss investment properties, a holding period of at least fifteen years is included in the calculation of deferred taxes. Deferred tax assets from tax loss carry-forwards are only recorded to the extent that it is probable that there will be sufficient taxable income in the future to offset the tax loss carry-forwards and related tax assets. There are no deferred tax liabilities for temporary differences related to undistributed earnings of subsidiaries, since the Züblin Group can manage the reversal of the temporary difference, and it is likely that these differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are netted when there is legal justification for such treatment and when the deferred taxes relate to companies of the same fiscal unity and to the same tax authority.

Financial instruments

IFRS 9 contains four principal classification categories for financial assets:

  1. measured at amortised cost
  2. fair value through other comprehensive income with recycling of cumulative gains and losses (debt instruments)
  3. fair value through other comprehensive income with no recycling of cumulative gains and losses (equity instruments)
  4. fair value through profit or loss

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. The Züblin Group does not have any financial assets that are recognised at fair value as at the balance sheet date.

Financial liabilities are recognised either at amortised cost or at fair value through profit or loss. The latter category includes financial liabilities held for trading, all derivatives with a negative fair value and liabilities for which the fair value option was exercised. The Züblin Group does not have any financial liabilities that are recognised at fair value as at the balance sheet date.


Financial assets are recognized in the consolidated balance sheet when the Züblin Group has a contractual right to receive cash or other financial assets from another party. Financial liabilities are recorded when there is a contractual obligation for a cash payment or the delivery of a financial asset.


Financial assets are derecognized if the contractual rights to payments arising from the financial assets expire or if the financial assets are transferred along with all material risks and rewards. Furthermore, financial liabilities are derecognized when the liability is settled via payment or assignment of a financial asset.


The first-time valuation of all financial instruments which are relevant for the Züblin Group is at fair value plus directly attributable transaction costs, except for financial instruments measured at fair value through profit or loss. The subsequent valuation is based upon one of the categories used by the Company, as listed above.

Financial assets at amortized cost

This category includes loans and receivables as well as cash and cash equivalents. The Group measures financial assets at amortised cost if both of the following conditions are met: The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows. And the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest. Financial assests at amortized cost are subsequently measured cost using the effective interest method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.The following assets are allocated to this measurement category:

Trade receivables:

Trade receivables Trade receivables are comprised of receivables arising from the leasing activities of investment properties.

Other non-current receivables:

Other non-current receivables are tenant loans, which will be repaid over the lease term.

Other current receivables:

Other receivables are those which do not arise from leasing activities of investment properties, particularly those from advance payments and bank balances that are not freely available within three months. In addition, heating and ancillary costs that have been paid out but not yet invoiced to tenants are shown in this item.

Impairment of receivables:

Financial assets are impaired if there are objective indications that future cash flows have changed negatively. For tenant receivables and loans, objective evidence of impairment may exist in the following cases: i) significant financial difficulties of the issuer or counterparty, ii) default or delinquency in interest and/or principal payments, and iii) probability that the counterparty will become insolvent. Tenant receivables are generally due on the 1st of the month or quarter. Receivables from service charge settlements are due 30 days after the invoice date. No interest is charged for overdue receivables. Receivables that are more than 90 days overdue are assessed individually. The allowance for expected losses is based on an individual assessment taking into account any existing collateral (e.g. rent deposits) and also takes into account corresponding historical experience and the creditworthiness of the counterparty.

Cash and cash equivalents:

Cash and cash equivalents Cash and cash equivalents are comprised of cash on hand, cash balances in postal and bank accounts, as well as short-term securities with a duration of less than three months.

Financial liabilities at amortized cost

Financial liabilities at amortized cost are non-derivative financial instruments with fixed or determinable payments. The subsequent valuation is at amortized cost under the effective interest method, whereby gains and losses on these positions are recorded in the income statement when they are derecognized or when interest is applied. The following liabilities in the consolidated financial statements are classified under this measurement category:


Mortgages represent loans concluded in order to purchase real estate and are secured by liens on the real estate. The mortgage loan portfolio of the Züblin Immobilien Group may include both variable and fixed rates of interest. A differentiation is made between non-current and current mortgages based on future repayments. Repayments due within twelve months or amounts that are callable within the next twelve months are classified as current, and the rest as non-current. In the case of investment properties held for sale, the property is classified as a current asset. The corresponding mortgage is also reclassified to current liabilities as mortgages held for sale. Mortgages are concluded in the same currency as the underlying investments.

Accounts payable:

Accounts payable consist of obligations that arise in connection with the investment properties, for example with leasing activities or renovation of a property, or in connection with overhead costs.

Other short-term liabilities:

These include all other liabilities of the Company, lease payments received in advance, VAT liabilities as well as sundry accruals.


Provisions are recorded if a legal or constructive obligation exists based on past events that will result in a probable outflow of funds, and where this outflow can be reliably estimated. Provisions are regularly reviewed and, if required, adjusted. They correspond to the current best estimate of liabilities.


Equity is comprised of share capital, capital reserves, retained earnings, treasury shares, reserve for cash flow hedges and foreign currency translation. Share capital includes the nominal value of the Company’s shares, which are issued and fully paid up. Par value reductions are ordinarily recorded in share capital. All earnings in the income statement are recorded in retained earnings. Other changes in equity are recorded as changes in capital reserves.

Treasury shares

Treasury shares are recorded at acquisition cost in the account “treasury shares” and deducted from equity. Upon sale, the same amount is credited to “treasury shares”, with any resultant gain or loss recorded in retained earnings.

Pension liabilities

The Züblin Group has a defined benefit plan in Switzerland. This pension scheme is generally funded through payments to insurance companies. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

In the balance sheet, the long-term obligation in respect of the defined benefit pension plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the Projected Unit Credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.

2.5.3 Segment reporting (IFRS 8)

The internal reporting of the Züblin Group takes place in the form of total company figures. There is no distinction between the type of use of the buildings or their geographical location, nor is there a separate “Corporate” section. Accordingly, the Züblin Group is one operating segment.