For the largest groups, the consolidated annual accounts, or consolidated financial statements, are a legal obligation in Luxembourg. However, groups which are not subject to this obligation may decide to draw up consolidated annual accounts for managerial, steering or financing needs.
The consolidated financial statements present in a single document a summary of the financial situation of a group of entities for a given period. Group entities have, directly or indirectly, one or more common shareholders.In Luxembourg, unlisted business groups can choose between three accounting standards: Lux Gaap, Hybrid (Lux Gaap with fair value measurement method) or IFRS as adopted by the European Union.If the groups decide to draw up consolidated accounts for internal needs, the group's accounting standards may be applied.
Our accounting firm is registered at the Chartered Accountants organization of the Grand Duchy of Luxembourg (Ordre des Experts Comptables du Grand Duché de Luxembourg - OEC).
Before starting to consolidate your group's accounts, we can help you define the needs:● Is it an obligation to prepare consolidated financial statements?● What are the interests of the internal consolidated annual accounts? What are the important indicators for financial management and general management?● Which consolidation currency to choose?
To complete this step, you must:● Determine the scope of group companies to be consolidated according to group control over these entities: Exclusive control = Global integration, Joint control = Proportional integration, Significant influence = Equity method● Define the accounting standards applicable to the group,● Write instructions for subsidiaries
We also assist you in the processing of information concerning:● The treatment and justification concerning the non-consolidation of certain entities,● Changes in scope during the period: entries and exits of entities,● Implementation of tools for collecting financial, non-financial information and supporting documents from consolidated and non-consolidated companies.
For consolidated entities, check:● The adequacy of the accounting data received from the subsidiaries for the consolidated accounts and the annual accounts,● Follow all unexplained discrepancies between the annual accounts of the subsidiaries and the annual accounts,● Convert all accounting information in the same consolidation currency and calculate the cumulative conversion difference (CTA).
The establishment of consolidated financial statements:● Eliminate inter-company operations: purchases, sales, financing,● Eliminate inter-company transactions linked to dividend payments,● Eliminate inter-company operations linked to internal margins (margins on stocks, etc.),
Analyze and follow the deviations noted with the subsidiaries.
We assist you in monitoring:● Business combinations and restructuring during the period,● Operations on the equity of the parent company and the subsidiaries, with the implementation of impairment tests,● Analysis of the group's consolidated reserves and their variations during the period.
The preparation of financial statements and their reviews relate to:● Verification of opening balances and comparative information,● The preparation of the consolidated balance sheet, the consolidated income statement and the appendices to the accounts and in particular:● The cash flow table,● The equity variation table,● Monitoring off-balance sheet items,● Analysis of deferred tax assets and liabilities,● Earnings per share,● Events after the close,● Any other information to be published in the financial statements,● The consolidated management report.
Tools that allow you to easily communicate your information to the firm.
To help you with your organization, we give you a checklist with the news every quarter.
We have regular meetings at the office, on your premises or by conference call to discuss the points concerning your activity.