All businesses that are subject to the code of commerce must keep accounting records according to an appropriate chart of accounts and produce annual accounts. Other businesses may be subject to specific or reduced requirements.
As such, not all businesses are subject to the Luxembourg standard chart of accounts (plan comptable normalisé - PCN).
For businesses subject to general accounting rules, the different accounting obligations may vary and are determined according to certain criteria, such as the size of the company, its legal form, its place of establishment, the sector of activity, the issue of securities, the notion of public interest, etc.
The content of the Luxembourg standard chart of accounts (PCN) has changed from the financial year starting 1 January 2020. The general functioning of the new chart of accounts and the reconciliation table (tableau de passage) also change and take effect on 4 January 2021.
In order to facilitate an overall understanding by the companies of all the changes made to the PCN, a comparative table will be made available to companies on the website of the Accounting Standards Commission.
The obligation to keep appropriate accounts and draw up an inventory applies to the following businesses:
In principle, these businesses are required to use the Luxembourg standard chart of accounts (PCN).
Since 1 January 2020, financial holding companies (SOPARFI) are also subject to the PCN.
The following businesses however are not required to use the PCN:
Companies not subject to the PCN must keep their books in accordance with the general rules of double-entry accounting.
The law does not require computerised accounting, but the accounts must be:
Furthermore, all book entries must be made without delay and in an accurate manner.
These businesses must file the required accounting documents with the Trade and Companies Register (RCS) in accordance with the terms and conditions applicable to them.
Businesses which are subject to the PCN must:
Luxembourg businesses are not required to use the structure of the PCN for their internal accounting needs, in particular if they have:
These businesses shall annually report the balance of their accounts as shown in the standard chart of accounts for the purpose of filing them with the RCS, indicating that their current accounts are kept according to their own internal chart of accounts.
They must adequately document the correspondence between their internal chart of accounts and the PCN. This documentation must be kept at their head office.
The PCN structure is presented in the form of a catalog of accounts with 7 different account types. Accounting operations relating to the balance sheet or the abridged balance sheet are reported in the classes 1 to 5.
Accounting operations relating to the profit and loss account or the abridged profit and loss account are reported in classes 6 and 7, i.e.: