This publication helps the reader to get a broad understanding of the major differences between International Financial Reporting Standards (IFRS) and Luxembourg Generally Accepted Accounting Principles (LuxGAAP) as well as a preview of future changes in standards.

This brochure is aimed at all corporate entities including Luxembourg branches of foreign companies. Banking institutions can refer to “Similarities and differences: IFRS and Luxembourg Banking GAAP”.

IFRS - a new kid on the block
Before the law of 10 December 2010, which introduced the possibility of applying IFRS for the preparation of annual financial statements, most company directors prepared their accounts using LuxGAAP.  Since then, Luxembourg companies can use either IFRS or LuxGAAP with fair value option for some elements to prepare or file their stand-alone and consolidated accounts.

Marc Minet, partner, PwC Luxembourg, says: “This publication explains the implication of LuxGAAP/IFRS differences in a comprehensive way so that Luxembourg large companies, which generally use IFRS for local accounts of group reporting, and other Luxembourg entities, which apply LuxGAAP, can leap into the accounting standard that suits them best. In addition, we are also trying to build a link bridge for foreign investors who wish to set up in Luxembourg.”

This similarities and differences publication takes account of authoritative pronouncements issued under IFRS and LuxGAAP up to 31 March 2013. Since 2005, IFRS have been mandatory for the preparation of consolidated accounts of listed entities.

To request a copy of this publication, please contact us at or visit our website www.pwc.lu/en/ifrs/publications.jhtml.