IFRS services

Challenges

Banking sector in Luxembourg and more widely in Europe is facing to IFRS challenges according to 3 levels:

• Since 2005, consolidated accounts of groups whose shares are admitted to a European regulated market have to present their financial statements in IFRS. This requirement implies for the Luxembourg subsidiaries to report their contribution to the group under IFRS.
• Since 2008, the CSSF, supervisor of the financial sector in Luxembourg, requires that the prudential accounting periodical reports are prepared according to the IFRS referential.
• Since 2008, banks implemented in Luxembourg have the options to publish the annual accounts under LuxGAAP, LuxGAAP with IFRS options or full IFRS.

In parallel, accounting teams have to face to shortened deadlines and the management of multi-GAAPs accounting is a supplementary difficulty. For this reason, more and more credit institutions have made the choice to elect IFRS accounting system and financial statement to rationalise the reporting standards used.

Migrating to IFRS implies a high involvement of the client’s team and some additional technical knowledge in regards to specific requirements for accounting or disclosures purposes.

Deloitte services offering

The IFRS Center of Excellence of Deloitte Luxembourg provides a range of tools to help the banking clients in this transition phase. Our experienced and specialised team is composed of experts by industry and by standards. The aim of our IFRS consulting services is to provide an adapted service to our clients in order to go with them through the transition to IFRS. Our dedicated IFRS team has unmatched experience providing specific and adapted IFRS trainings to financial institutions. The team included subject matter specialists in the areas of accounting, tax, regulatory capital, processes, controls and systems. Our services proposal includes amongst other:

Hotline and specialised standards studies

Upon request, we can assist management in its assessment of the application of IFRS and providing advice and recommendations on IFRS accounting policy choices. We can also provide written analysis on the appropriate application or interpretation of IFRS to a specific transaction.

Customised trainings (from introduction to advanced)

Members of the IFRS technical team, and in particular the team involved in the impact analysis, are at your disposal to provide trainings on specific topics which the bank would identify needs for accounting, finance or other staff people. We provide IFRS-relevant skill sets of IFRS trainings (Statutory accounting and reporting, financial instruments, pensions, income tax, leasing, business combinations, revenu recognition, share based payment, etc.).

Objective of customised trainings may also be to present new requirements following the application of new IFRS standards, including case studies, quizzes and examples in order to illustrate all the impacts linked.

Gap analysis

For your IFRS conversion, we propose an assessment of impact on converting to IFRS. Our assistance includes:

• Quantifying the impact of the key IFRS to LuxGAAP differences identified
• Preparing a pro-forma IFRS balance sheet and income statement as of the latest balance sheet date and fiscal year end
• Identifying additional footnote disclosure requirements and summarizing impact on internal reporting structure to obtain required data
• Identifying the key impacts of adopting IFRS on bank’s regulatory capital and taxation positions
• Identifying any changes required to bank's systems architecture, processes and key controls

Preparation of IFRS reporting or financial statements

Deloitte may assist you prepare to IFRS reporting or to establish IFRS financial statements as well as to design group reporting packages to gather information form subsidiaries or branches.

Experienced people and providing tools that will be used as accelerators in this project. These include:

• Experience of first time adoption for group reporting and financial statements issuance purposes;
•  IFRS model financial statements, checklists, and questionnaire;
• Deloitte Guides to Individual IASs and IFRSs ;
• IAS Plus ( IFRS specialised web site);
• IFRS impact assessment toolkit (including check lists, workshop presentation material, etc.);
• Implication within global and local working groups (IASB, EFRAG, ABBL, IRE, CNC);
• Regulatory updates for Luxembourg;
• Access to Deloitte IFRS Center of Excellence

These services can be embedded in a global solution including the involvement of our tax consulting department for tax plan with the fiscal administration, our IT consulting department in case of IT development or migration, and/or our actuarial department in relation with pension plan analyses.