Most Luxembourg companies must provide and file their financial statements at the end of its financial year. The scope of the accounting regulations to be observed depends on the legal form and size of the business. Since accounting legislation has become a fast-moving field, we will advise you on the preparation of your annual financial statement and clarify any individual accounting issues you may have. Accounts can be prepared in any currencies as well as either in English, French or German. This includes Bookeeping, the preparation of annual accounts and ECDF reports. Our team of professionals has expertise, and is regularly updated and trained, in International Financial Reporting Standards (IFRS) and Luxembourg Generally Accepted Accounting Principles (LUX GAAP).

Auren Luxembourg provides comprehensive support for the annual tax return process, ensuring compliance and optimisation for both individuals and businesses. Our team of tax experts is well versed in Luxembourg’s tax regulations, offering guidance tailored to each client’s unique financial situation. Our specialisations include:

• Corporate Income Tax (CIT)
• Municipal Business Tax (MBT)
• Net Wealth Tax (NWT)
• Dividend distribution

The annual VAT return serves as a comprehensive summary of all VAT obligations and payments, ensuring the company’s compliance with Luxembourg’s VAT regulations and often finalising the year’s VAT position with the tax authorities. An annual VAT return in Luxembourg requires companies to provide a detailed report of their Value Added Tax (VAT) obligations over the calendar year. Our services entails:

• VAT Registration and deregistration
• VAT Return filings
• VAT Assessment review
• Communication with the VAT authorities

Periodic VAT returns allow Luxembourg companies to stay compliant by providing regular updates on VAT due or reclaimable, ensuring that the cash flow is managed throughout the year and that any VAT liabilities are met punctually. In Luxembourg, a periodic VAT return (monthly or quarterly) allows companies to regularly report and settle their VAT obligations throughout the fiscal year. This service includes :

• VAT Return filings
• VAT Assessment review
• Communication with the VAT authorities

Consolidation under LuxGAAP (Luxembourg Generally Accepted Accounting Principles) refers to the process whereby a Luxembourg-based parent company combines the financial statements of its subsidiaries to produce a single set of consolidated financial statements. These statements give a comprehensive view of the group’s financial position, performance and cash flows as if it were a single entity. This typically includes :

• Identifying the subsidiaries
• Gathering their financial statements
• Adjustments and eliminations of intra-group positions
• Minority interest calculations
• Preparation of consolidated financial statements

Auren Luxembourg, with over 5 years of expertise, supports businesses in IFRS consolidation, ensuring transparent and accurate financial reporting for parent and subsidiary entities. Our team assists with identifying subsidiaries, eliminating intercompany transactions, aligning accounting policies and managing non-controlling interests. We also ensure compliance with IFRS disclosure requirements, navigating challenges such as policy variances and currency translation. By choosing Auren Luxembourg, clients receive reliable expert guidance tailored to Luxembourg’s regulatory environment, enhancing their consolidated financial statements’ clarity and compliance. This consolidation includes :

• Identifying the subsidiaries
• Determining their control
• Eliminating Intra-group Transactions and Balances
• Adjustments for Fair Value and Impairment
• Preparation of consolidated financial statements
• Providing disclosures

Auren Luxembourg provides tailored management report preparation and NAV (Net Asset Value) calculation services, essential for accurate financial oversight and decision-making. Our team prepares insightful, compliant management reports, offering a clear view of business performance through key metrics. For NAV calculations, Auren ensures accuracy in valuing assets and liabilities, crucial for fund reporting and investor transparency. With in-depth expertise in Luxembourg’s regulatory standards, Auren’s services deliver timely reliable insights that support our clients in maintaining high standards of accountability and strategic planning. The NAV Calculation is as follows:

• The NAV is calculated by subtracting the total liabilities from the total assets: NAV = Total Assets − Total Liabilities
  This gives the net worth of the entity at any specific point in time
• Per-Share NAV (where applicable)
  For mutual funds or investment funds, the NAV is often calculated on a per-share basis to determine the value of one share in the fund. This is done by dividing the NAV by the total number of outstanding shares:
  NAV per share = Total NAV / Total Number of Shares Outstanding
  This per-share NAV reflects the price at which investors can buy or sell shares in the fund.
• Adjustments for Market Value
  Fair Value Adjustments: Assets are often valued at fair market value rather than historical cost in order to provide an accurate assessment of the NAV.
  Unrealised Gains and Losses: For investments that fluctuate in value, the NAV may include unrealised gains or losses based on current market value, impacting the total NAV until they are realised through a sale.
• NAV is typically recalculated at the end of each trading day for mutual funds, while real estate and private equity funds may calculate it less frequently, based on market or appraisal values. The NAV serves as a snapshot of the total value of the fund or entity for investors, shareholders and stakeholders.

Auren Luxembourg offers specialised BCL (Banque Centrale du Luxembourg) reporting services, designed to ensure that businesses meet the regulatory requirements set by Luxembourg’s central bank. Our team provides accurate and timely reporting solutions, covering financial data submissions, statistical reporting and compliance with BCL standards. With our expertise, clients can be sure that their BCL reporting is managed efficiently, minimising risks and enhancing transparency. This typically includes :

• Assets and Liabilities Breakdown
• Portfolio Composition
• Liability Structure
• Income and Expenses
• Valuation and Revaluation Adjustments
• Fund Shares/Units and Net Asset Value (NAV)

In summary, BCL Reportings are essential for ensuring transparency, supporting financial stability and aligning Luxembourg’s financial industry with EU-wide regulatory standards. It is a comprehensive tool for finance industry oversight and regulatory compliance in Luxembourg.