The complexity of its takeover of Credit Suisse has UBS executives considering delaying reporting its quarterly results.
UBS executives are said to be considering delaying its report of second-quarter results to give the bank more time to grapple with the myriad complexities of its takeover of Credit Suisse, according to a story in the «Financial Times» (behind paywall) citing people familiar with the matter.
Currently, UBS is scheduled to report its results for the second quarter on July 25, but the bank's leadership is considering pushing that to the end of August when UBS could also potentially give an update on its intentions for Credit Suisse's Swiss business
Legal Hurdles
Not only are there complex political and financial issues to digest but also legal ones. The government-sanctioned takeover of Credit Suisse by UBS is facing legal action at home and abroad, but also political opposition.
Another obstacle for the integration is more prosaic in that UBS has to combine the accounting systems of both entities. UBS uses International Financial Reporting Standards (IFRS) which generally call for reporting interim results no later than 60 days after the end of the reporting period.
Credit Suisse uses Generally Accepted Accounting Principles (GAAP) which are generally favored by US companies.
Earlier today, UBS announced it would complete its government-induced takeover of Credit Suisse as early as next Monday, as finews.com reported.
