New Q&As - New Accounting Directive


New CNC Q&As - New Accounting Directive

10 August 2017

Regulatory News Alerts

The Luxembourg Commission des Normes Comptables (CNC) published 4 new Q&As in July. These Q&As aim to clarify some provisions of the Law of 18 December 2015 implementing the new Accounting Directive.

Reference & Link


Main issues covered

Q&A CNC 17/012

Research and development costs

The Q&A covers:

  • Issue of disconnecting the balance sheet (2016) from the standardized chart of accounts (2009) and how it can be managed
  • Definition of research and development costs (by reference to IAS 38)
  • Summary of LuxGAAP accounting treatment, including amortization, from 1 January 2016

Q&A CNC 17/013

Turnover definition

The removal of extraordinary charges/income captions and the new turnover definition, excluding the reference to “derived from the sale of products and the provision of services falling within the company's ordinary activities” lead to potentially consider the inclusion of such profits formerly classified as extraordinary in the turnover definition.

Q&A CNC 17/014

Note to annual accounts of parent company and subsidiaries - Information on consolidated accounts

The Q&A provides details on the information to be disclosed by:

  1. All subsidiary undertakings included in the consolidated accounts of a parent undertaking (Article 65 [1] 15 ° LRCS) – this guidance provides clarification on the smallest/largest body of which the company forms a part as a subsidiary
  2. Subsidiary undertakings that are also parent undertakings and who wish to avail themselves of the so-called "sub-group" exemption (Article 314 [2] [c] LSC)
  3. Parent undertakings drawing up consolidated accounts

Q&A CNC 17/015

Note to annual accounts on participating interests - Exception to the exemption principle for small enterprises

The Q&A covers:

  • Reminder and clarification on information required on participating interests (Article 65 [1] 2 ° LRCS), including consideration of the legal form and of the publicity of the annual accounts of the participating interest (different requirements apply)
  • General principle applicable to small undertakings engaged in an industrial or commercial activity
  • Exception to the exemption for small businesses whose activities are financially predominant, mainly holding companies with a holding or financing activity. The CNC states that, in respect of the true and fair view principle, such entities shall not be exempted to disclose a note on their participating interests

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

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