Revision of three Q&As CNC

The below summary comes from the revised CNC Q&As which can be consulted on the website of the CNC. In this publication, we do not intend to summarise the Q&As previously issued but we will only focus on changes made on these revised versions.

Q&A 22/026: Currency of bookkeeping and annual accounts

For the main changes, the CNC updated the references to currencies which could be used. The reference to ISO 4217 (which is used for eCDF purposes) has been removed from the Q&A and a triple-criteria approach has been introduced instead:

• the currency must be fully convertible; 

• the currency must be freely usable; and 

• the currency must be guaranteed by a central bank or a public authority.

Q&A 21/024: Change of accounting methods, valuation methods and accounting estimates 

Along with rephrasing some sentences, the main update to the Q&A is the addition of the reference to Article 51 (2) of the Luxembourg Accounting Law, which requires the disclosure of the motivation of such change in the notes to the accounts.

Q&A 15/004: Sub-group consolidation exemption and the notion of equivalent GAAPs

In addition to the update of the legal references to the 1915 commercial company law and few minor wording updates, a reference has been now included to recognise the International Financial Reporting Standards (IFRS) as endorsed by the United Kingdom Endorsement Board (UKEB) as equivalent for the sub-group exemption.