Harmonized invoice model 2

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The Swiss CFO conference has an evolution of H armonisierten R echnungs m Odell, the HRM2 , commissioned. The manual for the HRM2 with the definitive chart of accounts was published in 2007. The chart of accounts contained here is harmonized with that of the federal government and meets its requirements for financial statistics. HRM2 is the "harmonized billing model" of the public sector and is mandatory for all Swiss municipalities and cantons. HRM2 is not a completely new development, but a logical further development of the now outdated HRM1 (or NRM, New Invoice Model) in the direction of the private sector and the international IPSAS standard . A spread of HRM2 is expected by 2018/2019.

Goal setting

For HRM2 a complete and truthful overview is required according to the "true and fair" principle. This is private-sector and based on IPSAS, but allows greater freedom. For example, accrual based delimitation is permitted and the formation of hidden reserves, which is no longer common in the private sector, is supported.

Requirement

The HRM1 accounting model is supplemented by a cash flow statement, the tiered income statement, the equity statement and a significantly expanded appendix. The inventory account is now subdivided into “balance sheet” and the current account “income statement”. As a minimum, the financial assets should be revalued on the basis of business market values. A reassessment of the existing administrative assets is optional. All newly acquired or built systems are assessed according to the new HRM2 guidelines. A complete reassessment is also carried out for provisions and accruals. The basis for an HRM2 conversion should be an “HRM2 compliance” check. Here, the existing financial transactions are checked for the requirements of HRM2 and a recommendation for action is made. Relevant business transactions and reporting requirements form the basis.

Innovations

The following innovations in particular are introduced with the HRM2

  • Introduction of asset accounting and depreciation of assets in administrative assets according to economic useful life
  • New chart of accounts and an adapted functional structure
  • Graduated certificate of success
  • Consolidated approach , above all government and closer administration, as well as administration of justice and other independent cantonal authorities
  • Cash flow statement
  • Extension of the annex to the annual financial statements (statement of equity, schedule of provisions, schedule of investments and guarantees, schedule of assets)
  • Financial ratios , there are different priorities, the highest priority have the net debt ratio, the degree of self-financing and the interest burden

Existing problem

Cantons and municipalities have different requirements for HRM2. Some larger municipalities want tougher guidelines such as those in the private sector. For smaller communities, which often use militia personnel, flexibility is particularly important. In general, the innovations of the HRM2 are supported by the municipalities. HRM2 creates the basis for more transparency in financial policy and sustainable investment financing. Ease of use is criticized by some municipalities.

Web links

Individual evidence

  1. ↑ Harmonized accounting model 2. At: www.hrm2.ch , accessed on 23 August 2017