Balance sheet and annual accounts in Luxembourg, prepared under the PCN, filed on time.
Preparing the balance sheet and annual accounts in Luxembourg means closing the financial year and then producing three inseparable documents — the balance sheet, the profit and loss account and the notes — under the standard chart of accounts (PCN) and Lux GAAP, before having them approved at the general meeting and filing them with the Trade and Companies Register (RCS) via the eCDF platform. FSL, a licensed fiduciary (auth. 10077274), prepares and files your annual accounts within the legal deadlines, securing the calendar, the layout (abridged or full) suited to your size category and the consistency with your tax position.
The balance sheet is the accounting statement that presents, at the closing date, the assets (what the company owns) and liabilities (what it owes), including equity. In Luxembourg it forms, together with the profit and loss account and the notes, the annual accounts prepared under the standard chart of accounts (PCN) and the Lux GAAP framework derived from the amended law of 19 December 2002. The accounts are approved by the general meeting within six months of the close, then filed with the RCS within the month following that approval, by structured electronic filing via eCDF.
Annual accounts and balance sheet governed by the amended law of 19 December 2002 on the trade and companies register and on the accounting and annual accounts of undertakings, and by the standard chart of accounts (Grand-Ducal regulation of 10 June 2009). Approval by the general meeting within six months of the close, filing with the RCS within the month following approval, by structured electronic filing via the eCDF platform. FSL is a licensed fiduciary (auth. 10077274, RCS B213987, VAT LU29299810).
Key takeaway
- Annual accounts = balance sheet + profit and loss account + notes, prepared under the PCN and Lux GAAP (law of 19 December 2002).
- The size category (micro, small, medium, large) determines the layout (abridged or full) and the audit requirement.
- Approval by the general meeting within 6 months of the close, then RCS filing within the following month (about 7 months after the close).
- Filing is electronic and structured via eCDF; late filing exposes the company to surcharges and penalties.
- FSL prepares and files your annual accounts, consistent with your tax position; company accounting from EUR 250 excl. VAT/month.
What do the balance sheet and annual accounts cover in Luxembourg?
In Luxembourg people often speak of "doing the balance sheet", but the legal obligation actually covers a set: the annual accounts. These comprise three inseparable documents — the balance sheet, the profit and loss account and the notes — that form a coherent whole. The balance sheet photographs the company's position at the closing date; the profit and loss account traces how the result was formed over the year; the notes explain the valuation rules and detail the significant items.
The balance sheet is read in two columns. The asset side shows fixed assets (intangible, tangible, financial), current assets (inventory, receivables, securities) and cash. The liabilities side shows equity, provisions, financial and operating debts, and accruals. The fundamental equality assets = liabilities reflects the balance between what the company owns and how it has financed it.
The profit and loss account sets the year's income against its expenses to reach the result. In Luxembourg it may be presented by nature or, in some cases, by function. The notes complete the true and fair view: they comment on accounting methods, movements in fixed assets, debts by maturity and off-balance-sheet commitments, without which the figures alone would be hard to interpret.
Understanding this architecture is not a theoretical exercise. It guides the collection of records, the order of closing work and the choice of layout. It is also what your bank, your partners and the tax authorities will read: a clear balance sheet and well-crafted notes reinforce your company's credibility.
The standard chart of accounts (PCN) and Lux GAAP
Luxembourg annual accounts rest on two complementary foundations. The first is the Lux GAAP framework, that is the set of principles and valuation rules derived from the amended law of 19 December 2002: prudence, going concern, consistency of methods, accruals and the true and fair view. These principles determine how each asset and liability is valued in the balance sheet.
The second foundation is the standard chart of accounts, or PCN, introduced by the Grand-Ducal regulation of 10 June 2009. The PCN imposes a standardised account nomenclature, organised into classes, which structures both day-to-day bookkeeping and the presentation of the balance sheet and profit and loss account. This standardisation aids comparability between companies and structured filing.
The 2002 law also opens, under conditions, a fair value option for certain financial instruments, by way of derogation from historical cost. This option is not trivial: it changes balance-sheet valuation and requires specific disclosures in the notes. We examine it case by case, depending on the nature of your assets and your reporting objectives.
Mastering the interplay between Lux GAAP and the PCN is at the heart of our work. The PCN provides the presentation framework, Lux GAAP sets the valuation rules: it is their rigorous combination that produces compliant, readable annual accounts that stand up to a commissaire, an approved statutory auditor or the authorities.
Lux GAAP or IFRS: which framework for your accounts?
The default framework in Luxembourg is Lux GAAP: the vast majority of companies prepare their statutory annual accounts under this national framework. It favours prudence and historical cost, which makes it stable, predictable and well understood by banks and the Luxembourg tax authorities.
International IFRS standards follow a different logic, more oriented towards fair value and the information needs of financial markets. In Luxembourg, some companies may, under conditions, opt for IFRS for their annual accounts or use them for consolidated accounts. This choice most often answers group, international-investor or listing needs.
Moving from one framework to another, or running both, is never neutral. It changes the valuation of many items, expands the notes and requires documented restatements. For a company with no IFRS obligation, Lux GAAP generally remains the simplest and most cost-effective choice.
We help you weigh Lux GAAP against IFRS based on your actual obligations, your shareholding and your consolidation needs. Where a conversion is required, it connects with our Lux GAAP conversion and group-reporting work, with no break in the management of your file.
Size categories: micro, small, medium, large company
Not all companies face the same annual-accounts obligations. The law distinguishes four size categories — micro undertaking, small, medium and large company — determined by three criteria assessed at the close: balance-sheet total, net turnover and average number of employees over the year.
The mechanism rests on crossing, upwards or downwards, at least two of the three thresholds, generally over two consecutive years. A company therefore does not change category on a one-off variation: the two-year rule brings welcome stability and avoids switching back and forth between layouts.
This size category has very concrete consequences. It governs the presentation layout — an abridged balance sheet and notes for the smallest structures, a full layout for large ones —, the level of detail expected and, above all, whether the accounts must be audited by an approved statutory auditor.
Tracking these thresholds over time is part of our remit. We alert you in advance when a crossing looms, so as to anticipate the change of layout, the possible appointment of an auditor and the impact on your deadlines and budget. A growing company should not discover its new obligations on closing day.
Abridged or full layout: which accounts format to choose?
The format of the annual accounts depends directly on the size category. Micro undertakings and small companies may, under conditions, use an abridged layout: a condensed balance sheet and reduced notes, which significantly ease the production burden without dispensing with the true and fair view.
Medium and large companies fall under the full, more detailed layout. The balance sheet shows more items, the profit and loss account is more granular, and the notes develop far more disclosures: breakdown of debts, movements in equity, remuneration of corporate bodies, off-balance-sheet commitments, related parties.
The choice of layout is not just a matter of comfort. An abridged layout limits the information published at the RCS, which can be a confidentiality advantage; a full layout, conversely, offers transparency valued by financiers. We adopt the format compliant with your situation while taking account of your preferences on the publicity of the accounts.
When your company sits at the boundary of two categories, we project both scenarios to give you a clear view. This anticipation avoids unpleasant surprises and lets you approach the close with the layout already settled and a controlled calendar.
Commissaire or approved statutory auditor: who controls your accounts?
The control of accounts is not uniform. Depending on the company's form and size, the annual accounts may be subject either to a commissaire — a lighter internal control — or to a statutory audit performed by an approved statutory auditor (réviseur d'entreprises agréé), a duly qualified and independent professional.
An audit by an approved auditor becomes mandatory when a company exceeds, over two consecutive years, at least two of the three thresholds: a balance-sheet total of EUR 4.4 million, net turnover of EUR 8.8 million and 50 employees on average. Below that, and depending on its legal form, the company may rely on a commissaire, or even be exempt from any external control.
This distinction is essential for the calendar and the budget. A statutory audit assumes a documented closing file, complete supporting evidence and coordination with the auditor in the weeks after the close. We prepare the accounts so they are "audit-ready" and ease the exchanges with the controller.
In every case, we stay strictly on bookkeeping, accounts preparation and advice: we do not perform the statutory audit, which belongs to an independent auditor, to preserve its independence. Where an auditor or commissaire is required, we coordinate their engagement while remaining your single accounting point of contact.
The notes and the true and fair view
The notes are too often seen as an administrative appendix. They are in fact the piece that gives full meaning to the balance sheet and the profit and loss account. Without them, raw figures would leave essential questions unanswered: on what basis are assets valued? When do debts fall due? Which commitments do not appear on the balance sheet?
In Luxembourg, the content of the notes varies with the size category and the chosen layout. For a small company, they remain concise. For a medium or large company, they develop the valuation rules, movements in fixed assets, the breakdown of debts by maturity, remuneration of corporate bodies, related parties and significant off-balance-sheet commitments.
The true and fair view is the guiding thread of the whole exercise. The annual accounts must give a faithful representation of the company's assets, financial position and result. Where strict application of a rule would not suffice to achieve that view, additional disclosures in the notes complete it.
We draft the notes with the same care as the balance sheet itself. Precise notes reassure your bank, smooth an audit and limit queries from the authorities. It is a modest investment that lastingly protects the credibility of your accounts.
Approval at the general meeting and legal deadlines
Once the annual accounts are prepared, they are not yet final: they must be submitted for approval by the members or shareholders gathered at an ordinary general meeting. The law requires this approval to take place within six months of the close. For a year ending on 31 December, the meeting must therefore be held by 30 June of the following year at the latest.
The general meeting does not merely validate figures. It decides on the allocation of the result — transfer to reserves, carry-forward, dividend distribution —, gives discharge to the management bodies and, where relevant, takes note of the commissaire's or auditor's report. The resulting minutes are a central piece of the file.
We prepare the entire meeting file in advance: finalised accounts, draft allocation of the result, agenda and draft minutes. This preparation allows the meeting to be held within the legal deadline, calmly, without a last-minute race against the clock.
Meeting the six-month deadline is not a mere formality: it is the starting point for the RCS filing. A meeting held on time enables a timely filing; conversely, late approval triggers a cascading delay that is best avoided.
RCS filing via eCDF: structured filing and deadlines
After approval, the annual accounts must be filed with the Trade and Companies Register. The law provides for filing within the month following approval by the general meeting: combined with the six-month approval window, this brings the overall deadline to about seven months after the close of the year.
Filing is electronic. For most companies it takes the form of a structured filing via the eCDF platform (financial data collection): the balance-sheet and profit-and-loss figures are entered in standardised forms, which allows their automated processing and control. Certain documents may, in defined cases, be filed as PDF.
This structured filing has a twofold benefit. It strengthens the consistency of the accounts — built-in controls catch many inconsistencies before publication — and it makes the data comparable across companies. In return, it requires rigorous data entry and a perfect match with the approved accounts.
We handle the entire eCDF procedure: preparing the forms, consistency checks, filing and retrieval of the acknowledgement. Once publication is effective, the accounts become enforceable against third parties, and you hold formal proof that your obligations have been met.
Late filing: risks, surcharges and penalties
Meeting the filing deadlines is not negotiable, and missing them has a cost. Late filing of the annual accounts with the RCS exposes the company to increased administrative surcharges, which rise as the delay lengthens. What was a mere formality then becomes an avoidable expense.
Beyond the immediate financial cost, delay has indirect effects that are often underestimated. Unfiled accounts weaken a banking file, complicate financing, may worry a partner or investor during due diligence, and draw attention to the company's administrative regularity.
Delay most often feeds on a chain reaction: a postponed close, then a late general meeting, then a slipping filing. It is precisely this mechanism that our calendar management aims to break, by securing each milestone upstream rather than enduring the final deadline.
Our commitment is simple: accounts prepared and filed within the legal deadlines. We track your deadlines throughout the year, alert you as key dates approach and organise closing work early enough that filing is never an emergency.
From balance sheet to tax: a coherent file
The balance sheet is not an end in itself: it is the starting point of your taxation. The accounting result established at the close serves, after tax restatements, as the basis for the taxable result and the calculation of corporate income tax (CIT), municipal business tax (MBT) and net wealth tax.
Working the balance sheet and tax in a coordinated way avoids breaks and inconsistencies. The choices made at the close — depreciation, provisions, inventory valuation — translate directly into tax. Anticipating them, rather than enduring them, allows the tax charge to be legitimately optimised while remaining fully compliant.
This coherence extends into the returns themselves. A clean balance sheet feeds reliable tax returns, which in turn ease any exchanges with the authorities. Conversely, approximate accounts always come at a price, sooner or later, in tax treatment and audits.
By entrusting FSL with bookkeeping, balance-sheet preparation and reporting alike, you benefit from a homogeneous file, a single point of contact and a continuous chain from data entry to the filing of accounts and returns. It is this continuity that lastingly secures your compliance.
Why entrust your balance sheet to FSL
FSL is a licensed fiduciary, holder of business licence 10077274 (RCS B213987, VAT LU29299810) and supervised under the anti-money-laundering framework. We prepare and file your annual accounts as an authorised accountant, with the rigour and responsibility this regulated status demands.
Our added value lies as much in method as in technical command. We run the calendar end to end — close, general meeting, eCDF filing —, we tailor the layout to your size category and we document each estimate so your accounts are readable, defensible and filed on time.
On budget, we work on a fixed, readable monthly package. Company accounting starts from EUR 250 excl. VAT per month (i.e. EUR 294.50 incl. VAT for turnover below EUR 112k), with the close and the preparation of annual accounts included in the annual package. The firm quote we provide within 24 hours sets it all out, with no hidden cost.
Finally, the balance sheet is never handled in isolation: it connects with bookkeeping, Lux GAAP conversion, consolidation, coordination of a commissaire or approved auditor and taxation. One file, one contact, a continuous chain from data entry to filing: that is what makes the everyday difference.
Size categories and annual-accounts obligations
| Category | Accounts layout | Control of accounts |
|---|---|---|
| Micro undertaking | Very light balance sheet and notes | No audit; commissaire by company form |
| Small company | Abridged layout allowed | Commissaire possible, audit not required |
| Medium company | Full layout or abridged notes | Audit if thresholds are crossed |
| Large company | Full layout mandatory | Approved statutory auditor required |
Who this is for
- Companies (SARL, SA, SAS) closing their year and required to file with the RCS
- Holdings and SOPARFIs whose balance sheet reflects participations and intragroup financing
- Self-employed and liberal professions keeping company accounts
- SMEs crossing a size threshold and changing layout or audit requirement
- Buyers and directors reconstructing a reliable accounting position before the close
What we do
- Closing work: inventory entries, cut-off, depreciation, provisions, reconciliations
- Preparation of the balance sheet, profit and loss account and notes in PCN format
- Determination of the size category and choice of abridged or full layout
- Preparation of the general meeting file and the approval minutes
- Structured electronic filing via eCDF and RCS publication on time
- Alignment with tax returns (CIT, MBT, net wealth tax) derived from the balance sheet
Estimated timelines
Pricing indication
Indicative ranges, excluding disbursements and taxes. Firm quote after scoping.
Ready to structure your balance sheet and annual accounts?
Free first call within 24 hours. Dedicated adviser, NDA from first contact.
Preparation checklist
Get the list of documents and steps to start without friction.
The process, step by step
Closing preparation
We gather the year's records, check the trial balance and ledger, then run cut-off controls to attach expenses and income to the correct period. This step underpins the reliability of the whole balance sheet: a clean inventory avoids last-minute adjustments.
Inventory entries
We post the closing entries: depreciation, impairments, provisions for risks and charges, inventory movements, accruals and deferrals. Each estimate is documented so the notes can account for it and the audit trail stays clear.
Preparing the annual accounts
We produce the balance sheet, the profit and loss account and the notes in standard chart of accounts format, in the layout (abridged or full) matching your size category. Where relevant, we weigh the fair value option for certain financial instruments.
Approval at the general meeting
We prepare the ordinary general meeting file and the draft minutes. The accounts must be approved within six months of the close; we set the agenda to meet that deadline without a rush.
eCDF filing and RCS publication
Once the accounts are approved, we file electronically and structurally via the eCDF platform, within the month following approval. RCS publication makes the accounts enforceable; we hand you the filing acknowledgement.
Frequently asked questions
What do the annual accounts cover in Luxembourg?
What is the standard chart of accounts (PCN)?
What are the deadlines to approve and file the accounts?
How is my company's size category determined?
When is an audit by an approved statutory auditor mandatory?
What is the difference between Lux GAAP and IFRS?
How are the accounts filed with the RCS?
What is the risk of late filing?
Is FSL a chartered accountant (expert-comptable)?
Do you also handle the tax derived from the balance sheet?
Request a quote
Reply within 24 business hours. NDA from first contact.