Accounting and Reporting

Accounting and reporting
Regulators from all over the world have increased scrutiny bringing compliance and how risks are managed on top of your agenda. In this fast changing world, companies are facing complex reporting and compliance obligations. At the same time, there is a constant drive to use technologies amd processes to meet compliance and accounting obligations and gain in efficiency.

Our solutions include:

Corporate tax compliance, accounting and reporting services

We can help you manage your global tax compliance obligations, support you on building shareholder value and dealing with the impact of the tax take on your business.

We also offer the following accounting and reporting services:

  • Bookkeeping & reporting services which may include:
    • Taking care of the bookkeeping and preparing the periodical reports and consolidation package under Lux GAAP, IFRS or US GAAP;
    • Setting up your chart of accounts under Lux GAAP, as well as the accounting methods and policies that are most suitable to your business;
    • Maintaining your books and records in accordance with the accounting framework (Lux GAAP, IFRS, US GAAP, etc.);
    • Preparing/reviewing your accounting entries/year-end entries;
    • Converting your trial balance to Lux GAAP accounting principles;
    • Preparing/reviewing your group accounting manual to ensure that it complies with a specific GAAP;
    • Preparing/reviewing your forecasts, cash-flow statements, etc.;
    • Preparing/reviewing your central bank reporting and any other reporting (e.g. cost accounting, INREV reporting, etc.) required by legislation;
    • Liaising with your auditors (including preparing audit trails);
    • Providing tax accounting services;
    • Ensuring global coordination from Luxembourg
  • GAAP conversion, and more specifically:
    • Converting your trial balance from a foreign GAAP (e.g. UK GAAP, US GAAP, etc.) to Lux GAAP or IFRS (or vice versa) by designing/reviewing your GAAP conversion file;
    • Analysing the key differences between your foreign GAAP and Lux GAAP;
    • Understanding the impact on tax and distributable reserves; and
    • Designing/reviewing your GAAP conversion file.
  • Preparing and compiling annual stand-alone and/ or consolidated accounts. More specifically:
    • Preparing/reviewing your balance sheet and profit and loss accounts in e-CDF format or another layout (e.g. management format); and
    • Preparing/reviewing your notes to the annual accounts
    • Preparing consolidated accounts to facilitate the analyses of a group's financial performance, and to provide insights to support the strategic decisions of top management and investors.
  •  Provision of accounting training by offering:
    • A wide range of accounting training courses on specific topics, for specific industries or on the latest legislative updates;
    • Tailored in-house training courses; and/ or
    • Workshops tailored to your exact needs.
  • Provision of an accounting technical helpline to render support on the application and interpretation of complex accounting standards and regulations. Your queries will be addressed in the format you prefer - by phone, by email or by providing you with detailed memoranda on:
    • The accounting impact of new and/or amended standards and future transactions planned;
    • Specific accounting treatment, such as mergers, contributions, group restructuring, classification, etc.

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VAT advisory and compliance services

VAT can be a significant cost to the alternative investment industry. Funds and investment vehicles must consider both VAT risks and opportunities when setting up and developing their product range. In general, a VAT exemption applies to the management of alternative investment funds, making Luxembourg a location of choice for setting up alternative investment funds. However, entities that cannot benefit from the exemption may run into VAT risk. Funds, investment vehicles and holding companies may have to deal with VAT compliance obligations and liabilities or, depending on their profile, incur VAT charged by their suppliers (at the VAT rate applicable in their country). Holding vehicles face issues in determining whether they can recover VAT on their purchases and finding methods to calculate the extent of such recovery.

We can help you on the following matters:

  • Tackle indirect tax issues your organisation faces on a day-to-day basis, including the determination of the appropriate VAT treatment applied to income and expenses;
  • Structure solutions in the framework of reorganisations and acquisitions, including assistance in implementing efficient structuring in relation to transaction costs, recharges and shared services;
  • Identify and monitor VAT exposures and opportunities - this includes due diligence/ “health checks" to assess VAT risks;  identification of opportunities for the recovery of input VAT and assistance in calculating input VAT adjustments;  and identification of opportunities to use of VAT exemptions on services purchased;
  • Review financial flows and related documentation from a VAT perspective;
  • Design and improve your indirect tax strategy;
  • Design and improve internal controls and indirect tax risk management;
  • Manage your compliance and reporting obligations, including registering for VAT and opting for tax as required in a timely manner;
  • Improve automation, digitisation and the management of FAIA;
  • Assist in discussions with the VAT authorities regarding VAT refunds, reporting and/ or the prevention of litigation;
  • Provide general training with PwC's Academy or custom-made trainings specific to your needs;
  • Update you on the latest VAT developments via GlobalVATOnline.

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Tax information reporting

Tax regulatory reporting obligations are technically complex and may impact the whole value chain and most policies and procedures of your organisation. Understanding the regulatory framework and adapting the internal processes and controls accordingly requires resources and expert knowledge.  The implementation of a reporting system within your company can also be time consuming and expensive.

Our Tax Information Reporting (TIR) multi-disciplinary team delivers tax consulting, risk, compliance and quality reviews and submits your reports on time to the relevant tax authority. We can assist you on the following matters:

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Accounting, reporting and consolidation for Alternative Investment Funds

Our team of experts can assist regulated and unregulated alternative investment funds manage and oversee their accounting and reporting requirements, as well as deal with their fund administration needs. Our range of services include the following:

  • Fund accounting and consolidation services
    • Assistance to the NAV computation
    • Preparation of Annual and consolidated accounts under required accounting standards (LUX GAAP, IFRS, US GAAP)
    • INREV reconciliation
    • Identification of all necessary adjustments to have harmonisation of the accounting policies
    • Bookkeeping
    • Coordination with the various parties involved
    • Investor reporting/communication
    • Calculation and payment of all relevant fees/taxes
    • Valuation of portfolio
    • Designing and implementation of the consolidation process
    • Coordination with local accountants in other countries
    • Review of the subsidiaries accounting records
    • Reconciliation of intercompany transactions
  • Investor and other reporting services
    • Preparation of investor or other reporting
    • Preparation of investor communications
    • Coordination of AIFM reporting
    • Risk management and compliance reporting
    • Ability to develop or adapt reporting models to your needs
  • Client relationship management services
    • Provision of a single point of contact to manage all needs, and who speaks English, French or German
    • Possibility to coordinate all services management may need (fund accounting, transfer agent, domiciliation, fund setup, property managers, the valuations team, tax compliance, tax structuring)
    • Setting up the reporting process and implementation of weekly calls to ensure each counterparty is on track and able to deliver
    • Available as and when you require, with focus on timely communication and real customer service

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Contact us

Thierry Braem

Alternatives Tax Leader, PwC Luxembourg

Tel: +352 49 48 48 5106

Pierre Donis

Alternatives Tax Partner, PwC Luxembourg

Tel: +352 49 48 48 5115

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