Keeping the association's accounts

Yes, but these can be adapted to the nature and scope of the association's activities. For example, the new law creates three categories of association, based on the number of full-time equivalent staff, total cash assets and total bank assets. The type of accounts to be kept will therefore depend on whether the association is considered 'small', 'medium' or 'large'.

 Explanations of the three categories of associations to determine the accounting system

An association that has not exceeded the limits of at least two of the following three criteria for two consecutive financial years:

1.    Number of full-time equivalent staff: less than three

2.    Total income: €50,000

3.    Total assets: €100,000

is a "small association" that must keep accounts showing income and expenditure.

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An association that has not exceeded the limits of at least two of the following three criteria for two consecutive financial years:

1.    Number of full-time equivalent staff: more than fifteen

2.    Total income: €1,000,000

3.    Total assets: €3,000,000

is an "average association" that must keep accounts in accordance with double-entry bookkeeping rules.

                                                  * * *

An association that has exceeded the limits of at least two of the following three criteria for two consecutive financial years:

1.  Number of full-time equivalent staff: more than fifteen

2.  Total income: €1,000,000

3.  Total assets: 3,000,000 euros

is a "large association" which must keep accounts in accordance with the rules applicable to companies and have its accounts audited by an approved auditor.

The annual accounts of associations in each of these categories must be filed and published with the Registre du Commerce et des Sociétés.

                                             * * *

The number of members of staff relates only to staff with a contract of employment, whether full-time, part-time, fixed-term or open-ended. Volunteers and temporary staff are not included.

Income includes membership fees, regular and one-off income, donations and grants.

Total assets include cash at bank and in hand, receivables, equipment, furniture, fixtures and fittings and property.

What accounting documents should be filed depending on the size of the association?

	Small association	Average association	Large association
Accounting type	simplified accounting with full details of income and expenditure	double-entry bookkeeping and accounting system	double-entry bookkeeping and accounting system
Accounting documents required annually at the end of the financial year	at least a statement of income and expenditure, followed by an appendix containing the following information: 1° total cash on hand ; 2° total bank assets ; 3° the number of members defined by tranches of members ; 4° the percentage of fund transfers to other countries in the European Union and the European Economic Area and outside the European Union and the European Economic Area	at least a profit and loss account and a balance sheet followed by notes containing the following information: 1° the number of members defined by tranches of members ; 2° the volume of financing of other entities; 3° the estimated percentage of activities carried out in the Grand Duchy of Luxembourg, in the other countries of the European Union or the European Economic Area and outside the European Union and the European Economic Area. the European Economic Area 4° the percentage of fund transfers to other countries in the European Union and the European Economic Area and outside the European Union and the European Economic Area	at least the annual accounts prepared in accordance with the accounting rules applicable to companies, as well as the accounts and annual accounts of companies whose notes to the accounts includes additional information on : 1° the number of members defined by tranches of members ; 2° the volume of financing of other entities; 3° the estimated percentage of activities carried out in the Grand Duchy of Luxembourg, in the other countries of the European Union or the European Economic Area and outside the European Union and the European Economic Area. European Economic Area ; 4° the percentage of fund transfers to other countries in the European Union and the European Economic Area and outside the European Union and the European Economic Area

Is an approved auditor compulsory?

An approved auditor is compulsory only for large associations.

How are the accounts adopted?

Each year, and no later than six months after the end of the financial year, the Board of Directors submits to the General Meeting for approval the annual accounting documents relating to the past financial year, together with the draft budget for the following financial year.

Within one month of their approval by the General Meeting, the Board of Directors shall file the accounting documents with the Registre de Commerce et des Sociétés.

How long should accounting documents be kept?

The documents and information referred to here, and the underlying supporting documents,

whatever the form in which they are kept, must be kept in an orderly fashion for ten years from the end of the financial year to which they relate.