Welcome to the first edition of our accounting newsletter for entities applying the law of 19 December 2002 on the register of commerce and companies and the accounting and annual accounts of companies (the “Accounting Law” and more generally “LuxGAAP”). The aim of this newsletter is to gather in one single and regular publication all the LuxGAAP related new laws, regulations and doctrines to ease its content monitoring for anyone interested in accounting information in Luxembourg.
This newsletter will not focus on a specific industry and will be broad, from commercial and holding companies, to securitisation companies, or regulated entities subject to the Accounting Law.
In this release, we cover the latest accounting developments that require attention. Specifically, the newsletter covers the following topics:
The future of the Accounting law further to the insurance of the draft bill n°8286;
The new Q&As or updated Q&As of the Luxembourg Accounting Board (CNC) issued since May 2023;
The law of 7 August 2023 revamping the accounting requirement for Non-Profit Associations (NPAs) and foundations.
Please feel free to get in touch with us or your regular PwC contacts if there is anything that you would like to discuss further. Please also let us know if there are any topics that you would like us to cover in upcoming editions.
Modernisation of Luxembourg's Accounting Law: a new Draft Bill sets the tone!
On 28 July 2023, the draft bill 8286 (the Draft Bill) was released, aiming to overhaul the Luxembourg accounting law applicable to undertakings (the New Law). The aim is to modernise the Accounting Law and to group all accounting requirements into one single law (currently in the commercial code, commercial law and accounting law), expanding at the same time the scope of the Accounting Law to FCPs (Fonds Commun de Placement), temporary commercial companies, commercial companies in participation, civil companies, agricultural associations, mutual insurance associations and pension-savings association.
The changes are expected to give more clarity for all users/readers, to clarify requirements which were not self-explanatory and to integrate accounting doctrines or market practices in the Accounting Law.
New Q&A CNC 23/030: Accounting impact of the change of currency for bookkeeping and annual accounts
In May 2023, the CNC (Commission des Normes Comptables or Luxembourg Accounting Board) issued a new Q&A (Q&A CNC 23/030) in relation to the accounting impact of the change of currency for bookkeeping and annual accounts. This Q&A address the main questions accounting practitioners may have, from the possibility to perform such a change to the accounting impacts.
New Q&A CNC 23/029: Accounting aspect of the migration of companies in Luxembourg
In May 2023, the CNC issued a new Q&A (Q&A CNC 23/029) in relation to the accounting aspects of the migration of companies in Luxembourg. The CNC's recommendation is prepared assuming there is an accounting continuity that echoes the legal continuity according to which the transaction is carried out. This Q&A addresses the main questions accounting practitioners may have, together with the presentation of 2 methods, a preferred and an alternative one, for the accounting impact of a migration.
Revision of three Q&As CNC
In May 2023, the CNC revised 3 Q&As, namely the Q&A 22/026 regarding the currency of bookkeeping and annual accounts, the Q&A 21/024 regarding the change of accounting methods, valuation methods and accounting estimates and the Q&A 15/004 with regards to the sub-group consolidation exemption and the notion of equivalent GAAPs.
The Law of 7 August 2023: New accounting requirements for non-profitable associations and foundations
On 7 August 2023 and after 14 years of debate, the law on NPAs and foundations was published (the New Law). The goal of this New Law is to modernise the legal environments of NPAs and foundations, which was still based on the modified law of 21 April 1928. This New Law also includes specific requirements on accounting and filing aspects.
This Flashnews intends to focus on accounting and filing impacts of this New Law for foundations as well as for the three different categories of NPAs that have been introduced, each of those having specific reporting obligations.
Explore our content and stay up to date with the latest developments!
Tax Insights
Contact us
Véronique Tinel
Tax Partner, Accounting Compliance, Consolidation Leader, PwC Luxembourg
Tel: +352 621 332 448
