Get Ready For PCN 2020

A few days ago, Luxembourg's Council of Government approved a draft of the Grand-Ducal Regulation (GDR) that would determine the content of the new Luxembourg Standard Chart of Accounts (PCN). This draft GDR has yet to be commented on by regulatory bodies, and thus is not yet final. It will only come into force when published on Mémorial A of Legilux.

This modernised PCN, which comes almost 10 years after its predecessor, aims to better meet the needs of companies preparing accounts ("preparers") and to allow public administrations ("users") to use the form more efficiently. Put another way, it will oblige preparers to provide better and more relevant financial information, with which users can more easily create reliable statistics and calculate direct or indirect tax. Ultimately, this will reduce the volume of forms, inquiries, and redundant requests for information from users.

What's new?

In the GDR, particular attention has been given to technology and process automation; indeed, compliance with it depends largely on these aspects. To these ends, the GDR introduces a flexible and automated mapping system for generating balance sheets (B/S) and profit-and-loss accounts (P/L). The new system is flexible in that the management body of a preparer, should it be unsatisfied with the mapping for true-and-fair-view reasons, can manually update how the mapping is done.

This mapping system should not only improve the tracking of accounting data for users, but also simplify the administrative process for preparers. Ultimately, then, applying the new GDR should bring no extra work for either party.

Furthermore, in the new PCN, some accounts have been deleted, added, or moved in order to meet the specific needs of preparers and users, as well as to comply with...

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