Q&A CNC 22/028 regarding the implementation of the consolidation exemption for small groups (Article 1711-4 LSC)

The CSSF wishes to relay the publication of the Commission des normes comptables (CNC) entitled “Questions/Answers CNC 22/028 (Q&A CNC 22/028): Implementation of the exemption for small groups (Article 1711-4(1) of the Law of 10 August 1915 on commercial companies1): practical arrangements” which is available online on the website of the CNC, section “Publications”, sub-section “Doctrine” (

The purpose of the Q&A CNC 22/028 is to provide accounting doctrine on the practical arrangements for the consolidation exemption as provided under Article1711-4 (1) of the Law of 10 August 1915 on commercial companies – also known as “small group exemption”. It is particularly important to note that the CNC concluded that the consolidation exemption applicable to a small group is not available for bank holding companies which are subject to prudential supervision on a consolidated basis of the CSSF and which decided to draw up their consolidated accounts under Title XVII of the Law of 10 August 1915 on commercial companies (point 5.2 of Q&A – page 7).


1 Article 1711-4(1) of the Law of 10 August 1915 concerning commercial companies provides that: “(1) By way of derogation from Article 1711-1(1) a parent company shall be exempted from the obligation to draw up consolidated accounts and a consolidated management report if, at the balance sheet date of the parent company, the undertakings which would have to be consolidated do not together, on the basis of their latest annual accounts, exceed the limits of at least two of the three criteria set out below:
– balance sheet total: EUR 20 million;
– net turnover: EUR 40 million;
– average number of full time staff employed during the financial year: 250.”