Treuhänder FA Practice Questions - Treuhänderin Treuhänder Mit Eidgenössischem Fachausweis Exam

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When valuing an owner-managed Swiss SME using the Discounted Cash Flow (DCF) or Capitalized Earnings method, what normalization adjustment (Bereinigung der Erfolgsrechnung) must a fiduciary make regarding the owner-manager's historical compensation?

Adjust the recorded compensation to an arm's-length market salary (marktüblicher Unternehmerlohn), adding back any excessive salary or deducting any undercompensated labor Add back 100% of all executive compensation with zero deduction for future management costs Ignore owner compensation because tax returns have already been filed Deduct the owner's private mortgage interest from company revenue

Correct Answer:

Adjust the recorded compensation to an arm's-length market salary (marktüblicher Unternehmerlohn), adding back any excessive salary or deducting any undercompensated labor

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