Capitalisation of property, plant and equipment

In Switzerland, movable tangible assets such as machinery, furniture or technical equipment can be capitalised if they serve the company for more than one year. There are no guidelines in the Swiss Code of Obligations that stipulate the amount above which an asset can be capitalised. There is considerable room for discretion. This means that the acquisition costs are recognised as an asset in the balance sheet instead of as an expense.

If they are recognised for the first time, property, plant and equipment must be measured at acquisition or production cost. Depreciation and write-downs must be recognised to take account of the reduction in value due to use and age.