Foreign exchange rules under Lux GAAP

What are the general rules regarding the foreign exchange under Lux GAAP? What are the most common accounting policies applied under Lux GAAP in that respect?

These are questions you may ask yourself.

This training gives an overview of the Luxembourg accounting framework. Using concrete examples it provides you with the practical knowledge required for the accounting of basic and specific operations.

This course also covers the related principal tax aspects.

By the end of this course, participants will be able to:

• understand the differences between realised and unrealised gains and losses and their impacts on the annual accounts;
• explain the accounting policies for foreign exchange currency transactions under Lux GAAP;
• understand specific operations (change in the presentation currency, branches,…);
• explain the main tax aspects.

1. Introduction

• Functional currency versus presentation currency
• Impact of the currency of the subscribed capital

2. Accounting policies

• General principles and commonly admitted methods
• Initial measurement
• Subsequent measurement

3. Specific operations

• Assets and liabilities economically linked
• Change of presentation currency
• Branches

4. Tax aspects

• Definitions
• Annual accounts in EUR – accounting policies and tax impact
• Annual accounts in currency
• Particular cases with foreign exchange risk

5. Practical cases

• Assets and liabilities economically linked
• Partial repayment of a loan receivable
• Balance sheet conversion

An attendance certificate will be sent to participants.

This training is coordinated by Alexandre Leleux, Partner in the accounting and tax compliance practice of PwC Luxembourg and Damien Brunet, Senior Manager in the accounting technical team, in charge of the Luxembourg GAAP trainings.

The training will be presented by experts in the accounting field.

Alexandre is a partner of our ECF practice, active in the accounting and tax compliance of international tax structures, operational companies, real estate and private equity sector. He has over 16 years of experience in audit and accounting.

His primary area of expertise is the preparation of financial statement under Lux GAAP, the conversion from GAAP to GAAP and the preparation of various reporting (CSSF, BCL,...) to ensure the accounting compliance of operational companies, management companies and international and private equity structures.

He is also the head of the Lux GAAP technical team of PwC Luxembourg advising multinational clients on the accounting queries from tax, audit and advisory departments of PwC Luxembourg and other PwC offices.

He is also member of the editorial board of ACE, an accounting, tax and audit professional magazine in Luxembourg.

Damien is a senior manager in the accounting and tax compliance practice of PwC Luxembourg and the coordinator of the Luxembourg technical accounting group where he deals on a day-to-day basis with complex Lux GAAP transactions. He is also responsible of the e-accounts solution, a PwC’s online tool for the preparation and filing of annual accounts. He is CCA (Certified Chartered Accountant) in Luxembourg and chartered accountant in France. He is also the president of the training’s commission at the OEC.