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1.4 Consolidated statement of changes in equity

in CHF thousand                                    
   
Share
capital
 
Capital
reserves
 
Own
shares
  Retained
earnings and
net income
  Goodwill
offset
with equity
 
Translation
differences
  Equity before
minority
interests
 
Minority
interests
 
Total
equity
Equity at 1 January 2016   1,960   4,160     225,508   –70,183   –17,512   143,933   15,208   159,141
Dividends paid         –7,840       –7,840   –2,881   –10,721
Employee equity incentive plans     90   –56         34     34
Currency translation effects             –391   –391   –38   –429
Net income for the period         10,806         10,806   1,525   12,331
Total equity at 31 December 2016   1,960   4,250   –56   228,474   –70,183   –17,903   146,542   13,814   160,356
 
Equity at 1 January 2017   1,960   4,250   –56   228,474   –70,183   –17,903   146,542   13,814   160,356
Dividends paid         –7,836       –7,836   –2,679   –10,515
Reduction of share capital                 –2,401   –2,401
Employee equity incentive plans     –38   –68         –106     –106
Currency translation effects             2,061   2,061   407   2,468
Net income for the period         4,771       4,771   1,625   6,396
Total Equity at 31 December 2017   1,960   4,212   –124   225,409   –70,183   –15,842   145,432   10,766   156,198

The share capital as at 31 December 2017 and 31 December 2016 consisted of 1,960,000 registered shares with a par value of CHF 1.00 each.

The amount of accumulated non-distributable reserves stands at CHF 13,743,000 (2016: CHF 12,167,000).

In the event of the disposal or partial disposal of entities or in the event of the full or partial reimbursement of loans with equity character granted to consolidated companies, goodwill and currency translation differences have to be fully or partially written down via the consolidated income statement in accordance with Swiss GAAP FER 30 (17). This has no impact on the consolidated shareholders’ equity as such a write-down would lead, on the one hand, to an increase in the consolidated shareholders’ equity, but the related loss would then represent a decrease of the same amount (‘recycling of goodwill and currency translation differences’).

In contrast, a reorganisation of the business (even if significant) that does not involve the disposal or partial disposal of entities would have no impact on these two items of the consolidated shareholders’ equity.

Of the total amount of goodwill and currency translation differecnces, CHF 84,511,000 (2016: CHF 86,573,000) relates to the Industrial Systems business unit, where the potential for write-downs in the event of (partial) disposals (possibly accompanied by a decrease in loans to group companies) is consequently significant.

The disclosures form an integral part of the financial report.