Publication of Q&As by the Commission des normes comptables (CNC) (only in French)

The CSSF would like to disseminate certain publications by the CNC. In this regard, the CNC has released five „Questions/Answers“ (new and revised) that can be accessed online on its website under the “Actualités“ section and under the „Publications“ section, specifically the “Doctrine“ subsection, which we would like to present below in English, full quote:
—
#### New “Questions/Answers”:
Q&A CNC 23/029 – Accounting aspects of company migrations to Luxembourg under LUX GAAP and LUX GAAP-JV regimes:
This Q&A aims to put an end to existing heterogeneous practices in this area. Similarly, the CNC defends the thesis of accounting continuity which echoes legal continuity. In this Q&A, the CNC argues in favor of the restatement of values that do not comply with Luxembourg accounting law (preferential method), while allowing the crystallization of said values provided that the unrealized revaluation gains are presented within non-distributable reserve items. for precautionary purposes (alternative method). Finally, the Q&A answers several practical questions that companies face when migrating their companies to Luxembourg.
Q&A CNC 23/030 – Change of accounting currency and preparation of annual accounts under LUX GAAP and LUX GAAP-JV regimes:
The purpose of this Q&A is to specify that a change of accounting currency and of annual accounts can only be drawn up in exceptional cases. The CNC also provides a pragmatic approach for converting accounting from the old to the new currency (use of a single exchange rate that does not generate translation differences). However, it remains possible for the company to adopt a more conceptual solution for the conversion of its accounts from the old to the new currency. In such a case, the company is required to provide adequate information in the appendix on the conversion method used.
#### “Questions/Answers” that have been revised:
Q&A CNC 15/004 (R) – Exemption from drawing up consolidated financial statements for sub-groups: notions of conformity and equivalence (article 1711-7, point 2° of the law of August 10, 1915 concerning commercial companies):
This Q&A has been revised to reflect on the one hand the exit of the United Kingdom from the European Union and on the other hand to reflect the legislative update of the articles of the law of August 10, 1915 concerning commercial companies.
Q&A CNC 21/024 (R) – Changes in accounting methods, valuation methods and accounting estimates under LUX GAAP and LUX GAAP-JV regimes:
This Q&A has been revised to clarify that in the event of a change in accounting methods or valuation methods, the reasons and motivations that led the company to make these changes in accordance with article 51, paragraph (2) of the law of 19 December 2002 concerning the register of commerce and companies.
Q&A CNC 22/026 (R) – Currency for keeping accounts and preparing annual accounts under LUX GAAP and LUX GAAP-JV regimes:
This Q&A has been revised to remove the reference to the standard ISO 4217 „Currency codes“ as an international standard used to delimit the currencies that can be chosen by Luxembourg companies for keeping their accounts and drawing up their annual accounts and to replace the latter with a reference to Luxembourg practice. Thus in practice in the Grand Duchy of Luxembourg „a company governed by Luxembourg law may thus freely select a currency of its choice which is legal tender for the keeping of its accounts and the establishment of its annual accounts, provided that it is a currency fully convertible and freely usable and whether issued or guaranteed by a central bank or by a public authority”.