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IFRS challenges

What IFRS means for companies in Luxembourg and the rest of Europe

Companies wishing to compete in the global market and achieve their growth objectives need a timely and efficient access to funds. The globalisation of today’s capital markets yields unprecedented opportunities to raise capital when and where needed. Accessing these markets, however, can be complicated and time consuming, and may involve a high degree of risk.

Companies offering securities must navigate the complexity of financial and regulatory requirements inherent in local and cross-border transactions. These requirements can be burdensome and can place significant strain on a company’s financial reporting function during the offering process and thereafter. IFRSs could be assisting you in achieving this goal. 

Use of IFRS in Europe

Listed companies
Since 2005, all EU companies listed on a regulated market have to apply IFRS preparing their consolidated financial statements. The IFRS requirement applies not only in the 27 EU countries but also in the three European Economic Area (EEA) countries.

Unlisted companies and separate company statements
EU Member States may extend the IFRS requirement to non-listed companies and to separate company statements. Nearly all Member States permit some or all non-listed companies to use IFRS in their consolidated statements and the majority permit it in separate statements. 

Use of IFRS in Luxembourg

Due to the regulation of the European Union, listed companies shall apply IFRS in their consolidated financial statements. IFRSs have already been included as an option for credit institutions, insurance and re-insurance companies in the past.

The new local Law of 10 December 2010 on commercial companies introduces the optional use of IFRS as adopted by the EU for the preparation of the annual or consolidated accounts. Please find below a table summarising the use of IFRS in Luxembourg with the issue of this new Law: 

  IFRS as adopted by the EU Lux GAAP (with FV option)
Annual accounts
Listed companies Option Benchmark
Unlisted companies Option Benchmark
Consolidated accounts
Listed companies Required Not applicable
Unlisted companies Option Benchmark

Deloitte IFRS Services

At Deloitte Luxembourg, we can provide you with integrated solutions driven by quality. We have IFRS experts available to offer you practical answers: our technical opinions are supported by a comprehensive analysis of the relevant guidance applied to your particular facts and circumstances.

We will proactively inform you on a timely basis of IFRS developments that may impact your financial reporting, in order to manage such changes appropriately.

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