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Derogation from the standardized balance sheet and profit and loss layouts

18 January 2017

Regulatory News Alert

Following the publication of Mémorial A of the Grand-Ducal Regulation of 15 December 2016 on the derogation from the standardized balance sheet and profit and loss layouts, based on Article 27 of the Law of 19 December 2002 on the register of commerce and companies and the accountings and annual accounts of undertakings as amended (“amended Law of 2002”), please find below a summary of the key points.

Grand-Ducal Regulation 1984 on holding layout repealed

The sociétés de gestion de patrimoine familial (SPF) could still use the specific layout “holding 29” (as per the Grand-Ducal Regulation of 1984 pursuant to the law of 1915), for the 2016 year end. From 2017, this old layout will not be allowed anymore; the SPF should refer to the Grand-Ducal Regulation of 18 December 2015.

Flexibility/adaptability of layouts for companies out of the scope of eCDF

This flexible regime covers mainly small and medium entities of the financial sector under CSSF supervision (except Support PSFs). It may potentially concern the following entities if the size criteria are met: 

  • Professionals of the financial sector (PSF) other than Support PSF,
  • SEPCAV and ASSEP,
  • AIFM,
  • Management companies (Chapter 15 and 16),
  • Management companies of authorized securitization funds,
  • SICAR,
  • Authorized securitization undertakings
  • And Payment institutions and electronic money institutions.

Small undertakings referred to in Article 35 of the amended Law of 2002 and which are exempt from the obligation to deposit the balance of accounts featured in the standardized chart of accounts (PCN) will have two options for the balance sheet layouts:

  • Annex IV of the Directive 2013/34/EU (vertical presentation)
  • Horizontal presentation as adopted by the Grand-Ducal Regulation of 18 December 2015.

Small undertakings can prepare their abridged balance sheet with only those items in Annex IV preceded by letters and roman numerals with specific disclosures (Art 14.1).

Small and medium undertakings referred to in Article 47 of the amended Law of 2002 and which are exempt from the obligation to deposit the account balance of accounts featured in the standardized chart of accounts (PCN) will have two options for the profit and loss account layouts:

  • Annex VI of the Directive 2013/34/EU (Profit and loss account by function)
  • Profit and loss account by nature as adopted by the Grand-Ducal Regulation of 18 December 2015.

Small and medium undertakings can prepare their abridged profit and loss account by grouping Net turnover, Cost of sales, Gross profit and loos and Other operation income in Gross profit and loss (Art 14. 2. b).

The companies that are effectively out of the scope of eCDF can already apply the layouts of the Directive 2013/34/EU for the 2016 exercise.

In addition, alternative presentations for these companies are allowed by:

  • Art 11 - Alternative presentation of the balance sheet based on a distinction of short-term or long-term elements.
  • Art 13. 2 - Statement of performance instead of presentation of profit and loss items.

We trust this information is of assistance and remain at your disposal for any question.

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