Preparation and filing of the statutory annual accounts
In Luxembourg, companies are classified in several categories, mainly based on size, to determine the obligations for preparing and filing of the annual accounts and to determine the audit requirements. The Law of 19 December 2002 as amended sets out the layout and content of annual accounts depending on the quantitative criteria as follows (meeting two or more consecutive financial years):
Balance Sheet total in million EUR |
Net turnover in million EUR
|
Average number of full time staff employed |
Size of the company |
Consequences |
Up to 4.4 |
Up to 8.8 |
Up to 50 |
small |
Non-listed small companies may draw up an abridged balance sheet, an abridged profit and loss account and abridged notes to the annual accounts. No annual management report is required. |
Up to 20 |
Up to 40 |
Up to 250 |
medium |
The balance sheet and the profit and loss account must be prepared in accordance with the headings prescribed by the Grand-Ducal Regulation of 15 December 2016 and must be shown separately in the order indicated. A more detailed subdivision of the headings is permitted provided that the layouts are complied with. Non-listed medium sized companies may present an abridged Profit and Loss account and may prepare an abridged management report. |
>20 |
>40 |
>250 |
large |
The balance sheet and the Profit and Loss account must be prepared in accordance with the headings prescribed by the Grand-Ducal Regulation of 15 December 2016 and must be shown separately in the order indicated. A more detailed subdivision of the headings is permitted provided that the layouts are complied with. A management report must be prepared. Its content is fixed in article 68 of the law. |
Audit requirements
In Luxembourg, a company’s annual accounts must be subject to an audit performed by a statutory auditor (Réviseur d’entreprises agréé) unless they are exempted.
Small sized companies are exempted from an audit if the criteria set by the Law of 19 December 2002, as described above, have been met.
However, companies subject to the supervision of the Commission de Surveillence du Sector Financier (“CSSF”) or Commissariat aux Assurances (“CAA”) must have their annual accounts audited whatever the size and the legal form of the company.
A société en nom collectif (general corporate partnership / unlimited company) and a société cooperative (Co-operative company) are exempted from the obligation to have their annual accounts audited whatever the size of the company unless they are subject to supervision of the CSSF or CAA.
The audit of annual accounts is conducted in accordance with International Standards on Auditing (“ISA”) as adopted for Luxembourg by the CSSF.
Financial Reporting Framework
A company may choose to prepare their financial statements either in accordance with the Luxembourg Generally Accepted Accounting Principles (“Lux GAAP”) or in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS”).
Filing of annual accounts
All entities, with the exception of those specified in Article 13 of the Commercial Code, are required to file their annual accounts with the Trade and Companies Register, duly approved, within the month of their approval and no later than seven months after the end of the financial year of reference.
