Consolidation Luxembourg

CONSOLIDATION
IN LUXEMBOURG

IFRS and Lux GAAP consolidated financial statements, intercompany reconciliation, audit-ready reporting, and complete outsourcing of the consolidation function delivered by a Luxembourg fiduciary firm with seventeen years of cross-border consolidation experience.

 

17+ Years of consolidation expertise

17+ Years of consolidation expertise

 

More than 300 entities

125 Entities in our largest live perimeter

 

30+ countries handled

Countries handled in cross-border groups

 

5 consolidation tools mastered

5 consolidation tools mastered in production

What Is Financial Consolidation?

What is Financial Consolidation?

Financial consolidation is the process of combining the financial statements of a parent company and its subsidiaries into a single set of accounts presenting the group as one economic entity. It is the only reliable way to measure the actual financial position, performance and cash flows of a group of companies that operate through multiple legal vehicles.

Definition of Financial consolidation

Financial Consolidaiton in Luxembourg is the legal and accounting process by which a parent company combines the assets, liabilities, equity, income and expenses of all entities under its control into one set of consolidated financial statements, after eliminating intra-group transactions and balances. It is governed by the Law of 19 December 2002 (transposed from the EU Accounting Directive) and may be prepared under Lux GAAP, IFRS as adopted by the European Union, or exceptionally another GAAP authorised by the Luxembourg Ministry of Justice.

Consolidation matters for three concrete reasons. First, it is a legal obligation for the majority of Luxembourg parent companies: the Law of 19 December 2002 requires consolidated accounts when a parent controls one or more subsidiaries, subject to size-based exemptions. Second, it is an essential management instrument: bank covenants, M&A negotiations, leveraged buy-out reporting and investor relations all depend on reliable group figures. Third, it is a credibility marker: institutional lenders, family-office gatekeepers, auditors and tax authorities now expect timely, defensible consolidated data and they apply scepticism when they do not get it.

The Luxembourg market, with its three trillion euro fund industry and its dense ecosystem of holding companies, has become one of the most demanding jurisdictions in Europe for consolidation work. Financial Services Luxembourg exists to deliver that work to the standard the market expects, on the timetable the market requires, at a cost structure that compares favourably with both Big 4 firms and in-house teams.

Luxembourg consolidation

In Luxembourg, consolidation may be required for holding companies, SOPARFI structures, multinational groups, private equity structures and international businesses operating through multiple legal entities.

Consolidation as a services


What we deliver in our consolidation service offer

Most international groups in Luxembourg do not need a full-time consolidation team. They need senior consolidation expertise on call, with a fixed annual fee, a fixed timetable, and a fixed standard of deliverables. Consolidation as a Service (CaaS) is our packaged answer: a recurring engagement that replaces or reinforces your in-house consolidation function.

Why CaaS beats both Big 4 and in-house

Compared with Big 4 firms, Consolidation as a Service typically reduces the annual cost of group reporting by thirty to sixty percent while delivering equivalent technical depth. Compared with an internal team, CaaS removes recruitment risk, holiday-coverage gaps, year-end overload, and the cost of maintaining specialised software licences and training. The same senior consolidation manager handles your file across the year which is the single most important predictor of reporting quality.

 

Production

Design and rollout of subsidiary reporting packages, group instructions, accounting manuals, scope-of-consolidation documentation, and management dashboards aligned with the group's KPI framework.

 

Reconciliation

Intercompany matrix design, automated reconciliation controls, elimination of internal margins on inventory, intra-group dividends, intercompany loans and accrued interest, and resolution of imbalances with subsidiary controllers.

 

Reporting packages

Design and rollout of subsidiary reporting packages, group instructions, accounting manuals, scope-of-consolidation documentation, and management dashboards aligned with the group's KPI framework.

 

On-demand expertise

Ad-hoc support on business combinations, scope changes, IFRS interpretations, deferred tax reviews, transfer pricing impact on consolidation, and pre-acquisition due diligence — all included in the annual envelope.

 

Continuous improvement

Annual review of the consolidation manual, quarterly process audits, automation of recurring controls, and benchmarking against IFRS and Lux GAAP regulatory updates from the CNC and the IASB.

 

Audit liaison

Single point of contact with the réviseur d'entreprises agréé, Big 4 audit teams, and group auditors — including PBC management, audit working papers, technical positions and resolution of audit findings.

CONSOLIDATION & REPORTING

EXTERNALISE YOUR CONSOLIDATION DEPARTEMENT

 

Consolidation Team occasional reinforcement

Consolidation team replacement Interim management

 

Freelance consolidation accountant

Consolidation assistance Production of consolidated accounts

 

Consolidation function outsourcing

External consolidation department Consolidated financial statement

 

Deployment of consolidation tool

SAP FC I TALENTIA I OTHERS Data recovery

 

Manage Intercompany

Filing of intercompany positions Intercompany reconciliation

 

Define scope of group's entities

Define the scope of your groups entities with consolidation reporting services that ensure compliance and deliver precise financial insights for business.

 

Drafting procedures

Writings notes on technical topics Draft consolidation procedure

 

First consolidation implementation

Organise consolidation process Securing the process

 

Consolidated financial statement

Consolidated financial statements Data collection and restatements

 

Manage audit of consolidation

Provide information to auditors Answers to question from auditors

 

Transition IFRS conversion analysis

Gap analysis Impact IFRS on P&L and KPIs

 

Implementation project management

Benchmark of consolidation solutions Drafting of specifications

Consolidation frequently asked questions

Consolidation team answers

Any Luxembourg parent company (S.A., S.à r.l., SCA) controlling one or more subsidiaries must prepare consolidated financial statements under the Law of 19 December 2002, unless the group qualifies for a size-based exemption (combined balance sheet ≤ €20m, turnover ≤ €40m, ≤ 250 employees on a consolidated basis) or for a sub-consolidation exemption when included in a higher-level EEA consolidation.
Lux GAAP follows the prudence principle, historical cost, and reduced disclosures, with significant accounting policy options. IFRS uses fair value measurement, the control-based consolidation model under IFRS 10, mandatory ECL impairment under IFRS 9, and far more extensive disclosures. IFRS is preferred for cross-border financing, listed entities, and institutional investor reporting; Lux GAAP suits unlisted family-owned and industrial groups.
Consolidation as a Service (CaaS) is a recurring outsourced engagement in which Financial Services Luxembourg replaces or reinforces the internal consolidation function of a group. Deliverables include monthly, quarterly and year-end consolidated financial statements, intercompany reconciliation, reporting packages, audit liaison and continuous improvement of the consolidation manual, all on a fixed annual fee.
Yes. Consolidation outsourcing is permitted and frequently used by international groups, SOPARFI structures and private equity managers. The parent company retains accountability for the financial statements while we produce the consolidation, intercompany matrix, eliminations and disclosures.
A typical mid-size group with 5 to 15 entities can be consolidated in 3 to 6 weeks for a year-end closing once data is collected. A first-time IFRS consolidation including gap analysis, opening balance sheet adjustments and disclosure preparation takes between 8 and 14 weeks.
We work with SAP Financial Consolidation, Talentia CPM, LucaNet, Oracle HFM/FCCS, Tagetik, and Excel-based consolidation environments. We also assist clients with selection, implementation, parallel runs, and migration projects.
Yes. We prepare audit-ready consolidation files (audit trail, reconciliations, supporting documentation, disclosure notes) and act as the single point of contact with Big 4 and statutory auditors throughout the audit cycle, managing PBC lists and resolving audit queries.
Intercompany eliminations remove transactions and balances occurring between entities of the same consolidation scope: intercompany sales and purchases, internal margins on inventory, intercompany loans and accrued interest, intercompany dividends, and unrealised gains on intra-group asset transfers. They are required to present the group as a single economic entity.
Annual consolidation engagements at Financial Services Luxembourg start from €12,000 for compact SOPARFI structures and scale up to €180,000+ for IFRS multi-currency groups with 30+ entities. Fixed-fee, capped, and time-and-materials models are available.
IFRS 10 — Consolidated Financial Statements is the IFRS standard defining the control principle: an investor consolidates an investee when it has power, exposure to variable returns, and the ability to use its power to affect those returns. IFRS 10 replaced IAS 27 (consolidation aspects) and SIC-12 in 2013.
The equity method, governed by IAS 28, is used to account for investments in associates (significant influence, typically 20% to 50% voting rights) and joint ventures. The investment is initially recognised at cost and subsequently adjusted for the investor's share of post-acquisition profit or loss, dividends received and other comprehensive income movements.
Yes. SOPARFI groups represent a significant share of our consolidation portfolio. We handle Luxembourg holding consolidation under both Lux GAAP and IFRS, including the participation exemption disclosures, dividend elimination, and goodwill amortisation policy under Lux GAAP versus impairment testing under IFRS.
Yes. We support private equity managers, RAIF master-feeder structures, parallel funds, and SCSp partnerships with portfolio company consolidation, NAV reporting reconciliation, IFRS 10 investment entity assessment, fair value through profit or loss measurement under IFRS 9, and LP reporting packages.
An external consolidation department is an outsourced team performing the entire consolidation function on behalf of a group, including chart of accounts harmonisation, scope management, data collection from subsidiaries, intercompany reconciliation, consolidation entries, reporting and audit liaison. It removes the need to recruit and retain in-house consolidation specialists.
Yes. We provide interim consolidation managers and senior consolidation accountants for 4 to 16 week reinforcement assignments during year-end closing, audit season, IFRS transitions, M&A integrations, ERP migrations, and emergency staff replacements.
Yes. Multi-currency consolidation is a core competency. We apply IAS 21 foreign currency translation, including closing-rate method for assets and liabilities, average-rate method for income statement items, and recognition of currency translation differences in other comprehensive income.
Yes. We prepare IFRS 1 first-time adoption opening balance sheets, identify all required adjustments, document elections and exemptions, prepare the reconciliation between Lux GAAP and IFRS equity, and produce the disclosure narrative for the first IFRS financial statements.
Purchase price allocation under IFRS 3 is the process of allocating the consideration transferred in a business combination to the identifiable assets acquired and liabilities assumed at fair value, with any residual recognised as goodwill. PPA may require independent valuation of intangibles such as customer relationships, technology, and brands.
Financial Services Accountant Luxembourg S.à r.l.-S operates under Luxembourg Ministry of Economy authorisation 10077274/2 and 10077274/0, and is registered under RCS B213987. Our Managing Director Mickaël LOC holds the Luxembourg expert-comptable mémorialiste qualification.
Yes. We deliver consolidated financial statements and reporting packages and in English. Luxembourg statutory consolidated accounts may be filed in any of the three official languages: French or English.
A reporting package is the structured set of financial and non-financial data submitted by each subsidiary to the group's consolidation team. It typically includes trial balance, intercompany positions, segment information, taxation data, off-balance-sheet commitments, and notes-related information. We design reporting packages tailored to each group's accounting policies and reporting cycle.
Yes. We compute deferred tax assets and liabilities under IAS 12 across the consolidation scope, including temporary differences from PPA adjustments, tax loss carry-forwards (with recoverability assessment), recognition of deferred tax on undistributed earnings of subsidiaries, and movement explanations for the tax reconciliation.
Yes. We perform Excel-to-tool migrations to SAP FC, Talentia CPM or LucaNet, including scope modelling, chart of accounts harmonisation, intercompany matrix design, automated controls implementation, parallel run validation, and final cutover with audit trail documentation.
Yes. We perform Excel-to-tool migrations to SAP FC, Talentia CPM or LucaNet, including scope modelling, chart of accounts harmonisation, intercompany matrix design, automated controls implementation, parallel run validation, and final cutover with audit trail documentation.
We work across SOPARFI holdings, private equity and venture capital, real estate (RAIF, FCP-RAIF, SCSp), industrial groups (manufacturing, automotive, aluminium), construction, technology, family offices, and international SMEs. Our consolidation specialists rotate across at least 12 sectors annually.
We act as a single contact point with the réviseur d'entreprises agréé and Big 4 audit teams. We manage the PBC list, deliver audit working papers in the auditor's format, document accounting positions, defend technical conclusions, and resolve audit findings before issuance of the audit report.

Consolidation cluster

Specialised pages on each consolidation discipline

Ifrs Consolidation Luxembourg
Lux GAAP Consolidation
Consolidation as a Service
Consolidation Outsourcing
External Consolidation Department
Interim Consolidation Manager
Consolidation Audit Support
Ifrs Consolidation Luxembourg
Lux GAAP Consolidation
Consolidation as a Service
Consolidation Outsourcing
External Consolidation Department
Interim Consolidation Manager
Consolidation Audit Support
Ifrs Consolidation Luxembourg
Lux GAAP Consolidation
Consolidation as a Service
Consolidation Outsourcing
External Consolidation Department
Interim Consolidation Manager
Consolidation Audit Support
Ifrs Consolidation Luxembourg
Lux GAAP Consolidation
Consolidation as a Service
Consolidation Outsourcing
External Consolidation Department
Interim Consolidation Manager
Consolidation Audit Support
Ifrs Consolidation Luxembourg
Lux GAAP Consolidation
Consolidation as a Service
Consolidation Outsourcing
External Consolidation Department
Interim Consolidation Manager
Consolidation Audit Support
Ifrs Consolidation Luxembourg
Lux GAAP Consolidation
Consolidation as a Service
Consolidation Outsourcing
External Consolidation Department
Interim Consolidation Manager
Consolidation Audit Support
Ifrs Consolidation Luxembourg
Lux GAAP Consolidation
Consolidation as a Service
Consolidation Outsourcing
External Consolidation Department
Interim Consolidation Manager
Consolidation Audit Support
Ifrs Consolidation Luxembourg
Lux GAAP Consolidation
Consolidation as a Service
Consolidation Outsourcing
External Consolidation Department
Interim Consolidation Manager
Consolidation Audit Support
Intercompany reconciliation
SAP FC Consolidation
Talentia CPM Consolidation
LucaNet Implementation
Group reporting Services
IFRS Conversion analysis
SOPARFI & PE Consolidation
Intercompany reconciliation
SAP FC Consolidation
Talentia CPM Consolidation
LucaNet Implementation
Group reporting Services
IFRS Conversion analysis
SOPARFI & PE Consolidation
Intercompany reconciliation
SAP FC Consolidation
Talentia CPM Consolidation
LucaNet Implementation
Group reporting Services
IFRS Conversion analysis
SOPARFI & PE Consolidation
Intercompany reconciliation
SAP FC Consolidation
Talentia CPM Consolidation
LucaNet Implementation
Group reporting Services
IFRS Conversion analysis
SOPARFI & PE Consolidation
Intercompany reconciliation
SAP FC Consolidation
Talentia CPM Consolidation
LucaNet Implementation
Group reporting Services
IFRS Conversion analysis
SOPARFI & PE Consolidation
Intercompany reconciliation
SAP FC Consolidation
Talentia CPM Consolidation
LucaNet Implementation
Group reporting Services
IFRS Conversion analysis
SOPARFI & PE Consolidation
Intercompany reconciliation
SAP FC Consolidation
Talentia CPM Consolidation
LucaNet Implementation
Group reporting Services
IFRS Conversion analysis
SOPARFI & PE Consolidation
Intercompany reconciliation
SAP FC Consolidation
Talentia CPM Consolidation
LucaNet Implementation
Group reporting Services
IFRS Conversion analysis
SOPARFI & PE Consolidation

CONSOLIDATION CLIENT TESTIMONIALS

LËTZ TALK ABOUT YOUR NEED

We're offering a tailored diagnostic to help you identify the right solution.

  • 142 Bd de la Pétrusse, 2330 Gare Luxembourg
  • Ring at Cerno 3rd Floors

Fiduciaire Financial Services Accountant Luxembourg Trusted reliable strategic long-term partner Luxembourg. Over 17 years of experience in strategic structuration RCS Luxembourg : B213987 TVA : LU29299810 Autorisation 10077274/2 (Fiduciaire) Autorisation 10077274/0 (Comptable) Supervisé par l'AED


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