Do I really need to prepare consolidated financial statements in Luxembourg, and under which standards?

Expert Support for Consolidation in Luxembourg – LuxGAAP & IFRS

Clear Financial Insight into Your Group’s Structure and Performance

This is one of the most common questions business leaders and CFOs ask and the answer depends on your group’s structure, size, and reporting requirements. 

In Luxembourg, consolidation is mandatory for many groups under local laws, especially when subsidiaries are involved. 

Whether you're reporting under LuxGAAP or IFRS, producing accurate and compliant consolidated financial statements is not only a legal requirement it’s also a strategic asset for managing performance and gaining stakeholder trust.

At Financial Services, our dedicated Consolidation & Reporting team provides tailored support across the entire consolidation process, from initial scoping to final reporting, under Luxembourg GAAP (LuxGAAP) and IFRS, in both English and French.

📌 Do I need to prepare consolidated financial statements in Luxembourg?

Yes, if your company controls one or more subsidiaries, you may be legally required to produce consolidated financial statements under Luxembourg law. Exceptions exist for small groups, but most mid-sized and large structures must consolidate under LuxGAAP or IFRS. A Financial Services Accountant in Luxembourg can help assess your specific obligations and advise on the right framework.

📌 What is the difference between LuxGAAP and IFRS for consolidation?

LuxGAAP (Luxembourg Generally Accepted Accounting Principles) is the local standard, typically simpler and more cost-effective to implement. IFRS (International Financial Reporting Standards) is often required by international investors or parent companies and provides more transparency and comparability on a global scale.
Our team can guide you in choosing the most appropriate reporting standard based on your business model and stakeholder requirements.

📌 What are the key steps in the consolidation process?

A typical consolidation process includes:

• Defining the consolidation scope
• Collecting financial data from subsidiaries
• Eliminating intercompany transactions
• Managing foreign currency translations
• Preparing the consolidated balance sheet, income statement, and notes
• Ensuring compliance with LuxGAAP or IFRS

We offer both technical assistance and full outsourcing of this process depending on your internal resources.

📌 Can I outsource my group consolidation in Luxembourg?  

Absolutely. Many companies in Luxembourg rely on a Financial Services Accountant to partially or fully outsource their consolidation process, especially when they lack internal expertise or face tight deadlines.
We provide scalable solutions — from one-off support to full consolidation cycle management — including the preparation of notes and audit support.

📌 What are the most common challenges in preparing consolidated accounts?

Some of the most frequent difficulties include:

• Incorrect or unclear scope definition
• Complex intragroup eliminations
• Different accounting policies across subsidiaries
• Currency conversion and foreign exchange impact
• Managing tight reporting deadlines

With our hands-on experience, we help you overcome these challenges and ensure the accuracy and compliance of your consolidated financial statements.