Luxembourg

IFRS 

Most banks are fully focused on the new financial instruments standard, but have you also thought about the potential implications of the new revenue standard? It is also likely to shape banks’ accounts because of its potential impact on the timing of revenue recognition. Our latest quarterly newsletter discusses both IFRS 9 and IFRS 15, including an analysis of some of the new revenue model’s key impacts for banks

 

Click here to find the effective dates of the new standards and interpretations

Have you already performed a GAP analysis to identify the potential impact on your Bank’s financial information? Have you already prepared revised pro-forma financial statements?

Our services – How we can help

  • IFRS conversion
    KPMG uses a multi-disciplinary and structured approach to assist clients performing GAAP conversions by assessing, designing, implementing, and sustaining conversions
  • IFRS Trainings
    KPMG provides a wide range of IFRS training services delivered by experienced KPMG professionals. Training sessions are individually tailored to address your concerns and needs.
  • GAP
    analysis
    KPMG can perform a gap analysis between the information required by IFRS and that currently available in order to identify the changes required in the accounting policies, options and quantification
  • FINREP KPMG can assist for the preparation of the FINREP reporting and ensure the consistency with the other reportings
  • Pro-forma financial statement
    KPMG can provide assistance with technical accounting issues involving the transaction and the preparation of financial statements including assistance with footnotes, pro-forma financials, and management's discussions and analysis

For more than 10 years, KPMG Luxembourg proposes its IFRS services to Luxembourg and international banking clients.


KPMG is committed to its IFRS Institute. We have invested heavily to bring together our IFRS experts from across the business to provide you with the latest thought leadership and insight. If you are a finance leader, this is the essential place for all the IFRS information you need. Click the following link to visit the KPMG IFRS Institute webpage.

Practical issues

Just click on one segment to get more information:
Accounting, Tax and Reporting Systems and Processes People and Change Business area Program Management

Accounting, Tax and Reporting – focus area Questions to consider Examples of assistance we could provide
Determine accounting and reporting topics What are your key accounting and disclosure differences?
  • Initial impact assessment
  • Preparation of proforma financial statements
  • Regulatory compliance support
  • Assistance in minimising P&L volatility
  • Planning and restructuring considerations (e.g. regarding potential dividend blocks)
  • Tax planning (unwind old schemes, implement new schemes)
Complexity of reported information How can your company manage information complexity yet maintain clarity for the investing community?
Volatility in reported earnings Are there choices that may mitigate volatility of reported earnings
Taxation What impact will changes have on your reported taxable profit? What impact will changes have on existing tax planning? Do any new tax planning opportunities become available? Are any tax elections required?
Systems and Processes
– focus area
Questions to consider Examples of assistance we could provide
Financial reporting dependent on operational policy and procedure, e.g., embedded derivatives, revenue recognition What changes do you need to make to your business processes so that new accounting standards are business as usual?
  • Assessment and implementation of system changes
  • iXBRL implementation
  • Assistance with policy, control and procedural matters arising from potential changes to accounting
  • Support in identifying gaps in information systems
Policies 'embedded' in existing accounting systems, e.g., amortisation rates hedge accounting, iXBRL What systems or sub-systems may need amending for changes arising from conversion and for production of the financial statements? Is it possible to embed policies in your accounting or IT systems where this is not currently done to improve consistency of application?
Data capture and conversion Do you have the data needed to be able to produce financial statements and all relevant disclosures under EU-adopted IFRS or the FRSME?
People and Change – focus area Questions to consider Examples of assistance we could provide
Internal communication What needs to be communicated to your reporting entities, employees and trading partners?
  • Ongoing or one-off tailored training sessions
  • Secondment/resources
External communication Who are the analysts, shareholders, external parties that track your company and industry? What valuation models do they use and what information will they need?
Training Are your finance teams ready for the change? What are their training requirements?
Business
– focus area
Questions to consider Examples of assistance we could provide
Valuation metrics How can differences affect valuation models?
  • Performance related pay review and valuation
  • Review of internal management information, KPIs and forecasts
  • Bank covenant review
Performance-related remuneration What are the appropriate performance targets, depending on how performance indicators change?
All employee plans What is the impact of the proposed accounting standards on existing plans and proposed new plans?
Internal management
information
When is the most convenient time to change internal metrics, for example budgets, key performance indicators and forecasts? How many years' comparatives will you change to provide an appropriate track record?
Loan agreements and other contractual relationships Do you have covenants which may need to be renegotiated to reflect changes in accounting standards? Will conversion affect interest cover ratios and other KPIs?
Program Management – focus area Questions to consider Examples of assistance we could provide
Project plan What does your high level conversion plan look like? Will it satisfy your stakeholders, for example your analysts and investors? Does it address the questions identified in each of the four other focus areas?
  • Project management of the conversion process
  • Secondment/resources
Resourcing Do you have appropriate/available internal resource?
Timescales What are your key milestones and deliverables? Have you considered early adoption?

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Get in touch with KPMG

Contact

Florence Rouault

Director

Tel. +352 22 51 51 6692

florence.rouault@kpmg.lu

 

Anke Schelling

Senior Manager

Tel. +352 22 51 51 6646

anke.schelling@kpmg.lu

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