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Equipe - secteur financier

Bill 8786: Accounting Reform in Luxembourg

Directive ATAD III


Bill 8786 introduces a substantial overhaul of the accounting framework in Luxembourg, aiming to modernize and harmonize accounting practices in line with market developments and European standards. AR Services S.A. is committed to helping its clients understand and effectively integrate these significant changes.


Main Objectives

The main goal of Bill 8786 is to simplify the legal framework for small businesses while enhancing requirements for larger entities to improve the transparency and reliability of financial statements.


Proposed Audit Thresholds

The newly proposed thresholds for mandatory audits are as follows:


  • Total balance sheet: increased threshold to 4.5 million euros (from 4 million previously).

  • Net turnover: increased threshold to 9 million euros (from 8 million previously).

  • Average number of employees during the financial year: adjusted threshold at 50 employees (unchanged but with modified evaluation criteria).


These adjustments aim to lighten the obligations for small businesses while ensuring that medium and large companies remain subject to rigorous scrutiny to guarantee their transparency and compliance.


Key Changes and More Details for Audit

Bill 8786 also introduces specifics regarding audit practices:


  1. Audit of Accounts: Companies exceeding the new thresholds will need to have their annual accounts audited by a qualified external auditor. This includes a more detailed review of financial reports and internal procedures.

  2. Enhanced Audit Criteria: For large companies, particularly large holdings defined as having a balance sheet total exceeding 500 million euros, audits will need to include in-depth evaluations of financial risks, internal control systems, and regulatory compliance.


Advantages and Disadvantages




  • Reduced Burden for Small Businesses: Fewer small businesses will be required to have their accounts audited, reducing their administrative and financial burdens.

  • Increased Financial Transparency: Mandatory audits for large companies ensure greater transparency and reliability of financial information.




  • Increased Costs for Large Companies: Enhanced audit obligations may result in additional costs for large companies.

  • Administrative Complexity: Adapting to new thresholds and standards may require substantial adjustments in companies' accounting and audit procedures.



Bill 8786 represents a significant turning point for the accounting and auditing framework in Luxembourg. By adapting to these changes, businesses can not only ensure compliance but also benefit from increased transparency and improved financial management. AR Services S.A. is committed to providing the necessary expertise to successfully navigate this regulatory evolution. For any inquiries or specific advisory needs, please do not hesitate to contact us.

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