Articles tagged with: IFRS

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

Standard chart of accounts

Following a decree issued by the Grand Duke on 10 June 2009 the use of a standard chart of accounts has become mandatory in Luxembourg.

The measure is part of the ongoing modernization of financial reporting and accounting rules in Luxembourg which began in 2002.

The standard chart of accounts must be used by the following entities and persons:

  • Commercial companies
  • European and other economic interest groupings
  • Branches and headquarters established in Luxembourg by sole proprietors not resident in Luxembourg, companies subject to the law of a foreign state (comparable to Luxembourg commercial companies) and economic interest groupings established abroad
  • Sole proprietors

The decree will apply to fiscal years starting after 31 December 2010 and to sole proprietors as of calendar year 2011. The first filings of account balances under the standard chart of accounts format will thus have to be effected in 2012.

We can assist you in implementing the new standard chart of accounts in your enterprise.

PLAN COMPTABLE NORMALISE

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