2 Preparation of the consolidated financial statements
The consolidated financial statements for the year ended 31 December 2020 have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). They were approved by the Board of Directors of the Company on 18 February 2021. They also comply with the Listing Rules of SIX Swiss Exchange and with Swiss company law.
The consolidated financial statements are presented in Euros (“€” or EUR) as the Euro is deemed to be the currency most representative of the Group’s activities. The functional currency of the Company is Swiss Franc.
The consolidated ﬁnancial statements are prepared on a historical cost basis except for certain financial instruments such as derivatives that are measured at fair value, certain components of inventory that are measured at net realisable value and defined benefit obligations that are measured under the projected unit credit method.