Luxembourg Accounting Board Issues New Pillar Two Q&A

On 22 March, the Luxembourg Accounting Board (CNC) published Q&A 25/035, providing further accounting guidance on the impact of the Pillar 2 rules on the standalone and consolidated financial statements of Luxembourg entities and groups. It covers both financial years prior to and beginning with the "Transition Year" (i.e., the year in which the entity/group falls for the first time fully in scope of the Pillar Two rules). This guidance follows two other publications already issued by the CNC in 2024 in respect of the disclosure of Pillar Two relevant information in the 2023 accounts or notes to these accounts.

This new CNC Q&A (available here in French) only concerns Luxembourg entities and groups that prepare their annual and consolidated financial statements under the Lux GAAP or Lux GAAP with Fair Value option (Lux GAAP-FV) regime.