The transition IFRS conversion analysis in Luxembourg is the structured process of evaluating impact on financial statements, systems, and KPIs to prepare a company for adopting International Financial Reporting Standards (IFRS).
This essential step identifies gaps with local GAAP, quantifies adjustments, and helps businesses implement a compliant and efficient reporting framework.
Transition IFRS conversion analysis is the preliminary stage of IFRS implementation. It involves:
Identifying key differences between current local standards (such as Lux GAAP) and IFRS
Quantifying adjustments to financial statements
Assessing the operational and reporting impact on subsidiaries and group-level reporting
Developing a roadmap for compliance and smooth adoption
This analysis gives decision-makers a clear picture of the challenges, costs, and opportunities created by transitioning to IFRS.
Gap analysis compares existing accounting policies and systems with IFRS requirements to highlight areas requiring modification.
Revenue recognition – timing and classification under IFRS 15
Lease accounting – capitalisation rules under IFRS 16
Financial instruments – measurement and impairment under IFRS 9
Consolidation methods – scope and treatment under IFRS 10 and IAS 28
By performing a rigorous gap analysis, businesses in Luxembourg can anticipate reporting differences and adapt early, minimising disruption.
Adopting IFRS may change how income, expenses, and results are presented. For example:
EBITDA variations due to lease accounting under IFRS 16
Revenue shifts when applying IFRS 15’s performance obligation model
Asset revaluation impacting depreciation and profit
Key performance indicators often require recalculation under IFRS. Margins, debt ratios, and return metrics may differ, influencing investor perception and internal performance tracking.
Global comparability: Align reporting with international peers
Investor confidence: Attract cross-border financing and investors
Operational efficiency: Standardise reporting across subsidiaries
Risk management: Identify hidden exposures in current accounting
At Financial Services Luxembourg, we provide tailored support to businesses preparing for IFRS adoption. Our service includes:
Detailed gap analysis between Lux GAAP and IFRS
Simulation of IFRS-based financial statements
Impact studies on P&L, balance sheet, and KPIs
Project planning for full IFRS conversion
Training for finance teams and management
Our goal is to ensure a smooth and compliant transition that enhances transparency and strengthens stakeholder confidence.
Our expertise in accounting transformation, company incorporation, and liquidation services has been highlighted in Le Figaro. Financial Services Luxembourg – Expert in Company Creation and Accounting Services.
"Transitioning to IFRS is not just a compliance project, it's an opportunity to improve financial transparency, investor trust, and long-term competitiveness."
Mickaël LOC, Managing Director, Financial Services Luxembourg, Accountant
If your organisation is preparing to adopt IFRS or needs to assess its impact on financial reporting, our Transition IFRS conversion analysis service provides the clarity and expertise you need. From gap analysis to KPI recalibration, we deliver actionable insights and a tailored roadmap for a successful transition in Luxembourg and beyond.
Contact us today to start your IFRS transition with confidence.