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IFRS in Luxembourg

Luxembourg lawmakers took a significant step to modernizing accounting in the Grand Duchy by passing a respective law on 10 December 2010.

The law amends several items of the balance sheet and the profit and loss account and redefines criteria for the determination of company size. One of the main changes, however, is the introduction of the fair value option in the Luxembourg accounting framework. The law confirms the fair value accounting option for financial instruments under Luxembourg GAAP and introduces the possibility of applying international financial reporting standards for the preparation of annual financial statements.

The following table shows the situation before and after the enactment of the law:

Before enactment After enactment
IFRS
Lux GAAP +Fair Value
Lux GAAP
IFRS
Lux GAAP +Fair Value
Lux GAAP
Annual Accounts
Listed companies Possible derogation Obligation Option Option Benchmark
Credit institutions, insurance and
re-insurance companies
Option Option Benchmark Option Option Benchmark
Unlisted companies Possible derogation Obligation Option Option Benchmark
Consolidated accounts
Listed companies Obligation Obligation
Credit institutions, insurance and
re-insurance companies
Option Option Option Option Option Option
Unlisted companies Possible derogation Option Benchmark Option Option Benchmark

We would be happy to assist you with the implementation of the fair value option or the introduction of International Financial Reporting Standards respectively.

NORMES COMPTABLES INTERNATIONALES POUR LES ENTREPRISES