Accounting

Company Size Category

The Luxembourg's accounting law distinguishes between three categories of companies: small, medium-sized and large companies. Classifying a company in the appropriate category is decisive since it then entails numerous accounting consequences such as: The minimum format of financial ...

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Filing of the annual financial statements

Businesses must file their annual accounts (PCN) with the ECDF platform to make them accessible to Luxembourg administrations. Additionally, some companies must also file their annual accounts with the Luxembourg Business Register (LBR) to make them accessible to the public. The main entities ...

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Approval of the annual accounts of SAs and SARLs in Luxembourg

The annual accounts of capital companies must be approved by the shareholders or members, as the case may be (in accordance with Articles 450-8 and 710-23 of the amended Act of 10 August 1915 on commercial companies). For SAs, the obligation to convene the meeting is attributed to the board ...

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What are the accounting and tax principles governing the exercise of a liberal profession?

This article deals with the accounting system of the liberal professions (doctors, lawyers, etc.) whose professional income is more than €100,000.

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Accounting and tax provisions in Luxembourg

The accounting and tax provision is defined as the recognition of a decrease in the value of an asset (provision for impairment of assets) or an increase in the liability due in the more or less long term (provision for risks or expenses).

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The précis de droit comptable [Accounting Law Handbook] (2020 edition)

The new edition of the "Précis de droit comptable [Accounting Law handbook]" was published in July 2020 [it is currently unavailable in English]. This is the fifth edition of the Précis de droit comptable: originally published in 2008, the Précis has been enriched ...

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Currencies in Luxembourg accounting

1. Valuation of foreign currency receivables and payables on entry into the accounts 1.1. Recording a foreign currency transaction in the absence of a currency hedging instrument Transactions in foreign currency are to be recorded in the currency in which the accounts are kept (in principle ...

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Leasing in Luxembourg

The contract of «leasing», a recent concept, generalized in the 1960s (its invention dates from an American law «lend-lease» of 11/03/1941) is based on a differentiation of the legal and economic ownership of a property.

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Double-entry accounting

Since 1 January 2017, the liberal professions must keep partly double accounts from the moment their annual turnover exceeds EUR 100,000.

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Accounting on a net asset basis

If the company knows that it will be in liquidation and even if the process has not yet begun, it must record its accounting transactions on a net-asset basis (if the company knows that it will not or will not be able to continue its activity).

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Benefits-in-kind

The assessment and nature of the tax income of benefits in kind granted to employees and shareholders and partners (whether or not they are employees) and in particular the benefits represented by the provision of service or a company car (the latter distinction does not exist in Luxembourg) ...

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Cash accounting or accrual accounting?

There are two main accounting systems: The accrual accounting system: income and expenditure are entered in the accounts as soon as they are certain in principle and determined in amount, even if they have not yet been paid; The cash accounting system: income is recorded when it is ...

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