Floating Financial Year

The Luxembourg Accounting Standards Board, Commision des Normes Comptables ("CNC") issued on April 2^nd 2014 a general notice (CNC 0172014) regarding the accounting term of floating financial year. The notices issued by the CNC aim at creating an accounting doctrine and represent the opinion of the CNC on a certain matter, with no binding effect.

The floating financial year is not fixed by reference to specific dates (for instance closing date of September 30^th), but is determined pursuant to a floating date (for instance the last Friday of September).

Given that the Luxembourg Trade and Companies Register ("Registre du Commerce et des Sociétés" – "RCS") requires from all undertakings to file with the RCS the relevant starting and ending dates of their financial year, the entities adopting the floating principal would need to file on an annual basis with the RCS the necessary adjustment to their financial year opening and closing dates.