![]() ![]() The latest criteria thresholds are as follows: small companies have less than €8.8 million in net turnover, less than €4.4 million in balance sheet total and less than 50 full-time employees while big companies have over €35 million in net turnover, more than €17.5 million in balance sheet total and over 250 full-time employees. net turnover, balance sheet total and number of full-time employees. ![]() Disclosures depend on three criteria according to which companies are classified as either "big", "medium" or "small", i.e. Cash-flow statements are not presented under Lux GAAP in contrast to IFRS. Annual accounts presented under Lux GAAP must consist of at least a balance sheet, statement of profit and loss, and notes. In keeping with EU Regulation 1606/2002/EC, Luxembourg entities which issue listed securities on any European Union regulated market must present their consolidated accounts under IFRS as adopted by the European Union for financial years as from 1 January 2005.Īnnual accounts presented under Lux GAAP must be filed with the Luxembourg Trade Register, also known as Registre du Commerce et des Sociétés (RCS), usually 7 months after year-end. IFRS have also been allowed for statutory accounts in Luxembourg, although this requires an agreement from the Luxembourg Ministry for Justice except for credit institutions, insurance companies and similar entitieswho may choose between Lux GAAP and IFRS (as adopted by the European Union) for their separate or consolidated accounts. For instance, research and development costs used not to have clear recognition principles, but it has been admitted that the usual criteria under IAS 38 could be used as guidelines for recognising intangible assets under Lux GAAP as well. International Financial Reporting Standards are also a major source of inspiration. Lawmakers in Luxembourg are especially keen on using doctrine from neighbouring France and Belgium whenever legal and regulatory requirements are unclear. The Law also defines the accounting framework applicable under Lux GAAP, especially the principles relevant to the preparation of financial statements, especially the prudence principle under which unrealised gains are not recognised except where fair value is applicable, in stark contrast to rules under International Financial Reporting Standards (IFRS). Since theLaw of 30 July 2013 was passed, profits arising from revaluation of assets recognised at fair value may not be distributed as dividends. For instance, financial assets may be recognised at either 1) acquisition or production cost, 2) fair value (as allowed under the Law of 10 December 2010 which amended the 2002 Law), 3) the lower of cost or market value, depending on financial statement line items. Lux GAAP are notable for the many options they afford, especially in terms of asset recognition. This law lays out specific accounting principles for all the main financial statement items. Lux GAAP fall under the Law of 19 December 2002 as amended, sometimes referred to as "the Accounting Law". Generally Accepted Accounting Principles) or "Luxembourg legal and regulatory requirements" (as often disclosed in the notes to the financial statements). OEC is under the direct stewardship of the Ministry of the Economy.Īpplicable accounting standards in Luxembourg are interchangeably referred to as either "Luxembourg GAAP" (i.e. Both professional qualifications feature exercises and questions in French while candidates are allowed to reply in either French, German or English. Professional qualifications leading to recognition as a qualified auditor (Réviseur d'Entreprises Agréé) are different, although they have exams in common with the OEC degree. Recognition of other national or international qualifications is possible under the mutual recognition procedure allowed by the European Union under the Bologna Process. The degree (OEC) consists of 5 exams (Tax Law, Accounting, Ethics, Labour Law, and Corporate Law) as well as a three-year traineeship in a related position, including at least one year with a qualified employer. Anyone wishing to establish themselves as a chartered accountant in Luxembourg must hold a degree from the University of Luxembourg and get an authorisation to set up their business. waivers for presenting consolidated accounts.Īccess to the accounting profession is strictly regulated in Luxembourg. Similar to France, Luxembourg has set up a Commissions des Normes Comptables (CNC) which serves as an advisor to the Ministry for Justice in respect of accounting related matters, e.g. Luxembourg accounting standards are inspired from neighbouring France and Belgium. The accounting profession in Luxembourg is structured around Ordre des Experts-Comptables (OEC) which serves as the main accounting body in the country. ![]()
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