CSSF press release concerning certain CNC publications: Q&A; CNC 26/037 entitled "A reminder of the differences between annual accounts prepared for statutory purposes and annual accounts prepared for contractual purposes or on a voluntary basis” and interview with the chairman of the CNC (Mr. Yvan Thommes) (only in French)

What Changed

• - The CSSF formally draws regulated entities’ attention to CNC Q&A 26/037, elevating it as a key interpretative reference on the concepts of annual accounts prepared for legal/statutory purposes versus annual accounts prepared for contractual or volu
• The CNC Q&A 26/037 provides clarified definitions of “comptes annuels établis à fins légales” (statutory annual accounts) and “comptes annuels établis à des fins contractuelles ou sur base volontaire” (contractual/voluntary annual accounts), includin
• The Q&A gives practical answers to frequently asked questions from preparers about when accounts qualify as statutory versus merely contractual or voluntary, and how this affects applicable accounting principles, disclosures, and filing/publication o
• The Q&A addresses related issues, such as the extent to which CNC doctrine and Luxembourg GAAP must be followed for contractual or voluntary accounts, and the risks of presenting non‑statutory accounts in a way that could confuse them with statutory
• The CSSF also highlights an interview with the CNC chairman announcing that Luxembourg accounting legislation will undergo a refonte (major overhaul), signaling that current CNC doctrine, including Q&A 26/037, may be a transitional reference point ah
• By publicizing these CNC materials, the CSSF implicitly expects supervised entities to integrate CNC positions into their accounting policies, governance, and disclosures, even where CNC documents are not “hard law” but constitute authoritative doctr

Suggested Considerations

• Obtain and review the full CNC Q&A 26/037 and the CNC chairman’s interview (French‑language originals), ensuring that finance, accounting, and compliance teams understand the clarified distinctions between statutory and contractual/voluntary annual accounts.
• Map all sets of financial statements prepared by each Luxembourg entity (statutory accounts, covenant‑based or lender‑specific accounts, group reporting packages, management accounts, etc.) and classify each set as statutory or contractual/voluntary in line with CNC Q&A 26/037 definitions.
• Update internal accounting policies and manuals to explicitly define statutory versus contractual/voluntary annual accounts, specify the applicable accounting principles and disclosures for each, and describe any differences in measurement, presentation, or scope.
• Assess current practices for communicating financial information to lenders, investors, regulators, and other stakeholders to confirm that non‑statutory accounts are not labeled or presented in a way that could be misinterpreted as statutory accounts approved under Luxembourg company law.
• Implement clear labeling and disclosure conventions on the face of financial statements and in accompanying notes (e.g., in engagement reports, board minutes, and management communications) to distinguish statutory annual accounts from any contractual or voluntary accounts.
• Ensure that boards and audit committees are informed of the CNC Q&A and the forthcoming overhaul of accounting legislation, and include a specific agenda item to consider whether governance arrangements and internal controls over financial reporting need adjustment.

Key Dates

Who is Affected