Accounting principles and practices

If you are faced with one of the following issues, you may be in need of reliable information:

  • You are now a corporation and you need information about accounting requirements and Belgian accounting principles
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  • You want to keep up-to-date on developments in domestic and international financial reporting
  • You need assistance for the day-to-day maintenance of your accounting records, year-end closings, review and preparation of your annual statutory accounts

Key information you will find in this section:

Scope:

Belgian accounting regulations apply to all Belgian entities and branches of foreign entities based in Belgium.

Accounts requirements

Language and currency
Accounting records must be prepared in the relevant official language.

Accounting records
The Belgian accounting regulations require accounting records to be organised as follows:

  • auxiliary ledgers
  • a centralisation journal
  • an inventory ledger

Accounting practices
Belgian law sets down a number of principles to be complied with.

Chart of accounts
Companies and branches must conform to the minimum chart of accounts as prescribed by Belgian law.

Annual accounts
Companies have to file annual accounts with the National Bank of Belgium in a specific, pre-defined format, which includes a balance sheet, an income statement, notes to the accounts and a social balance sheet.

Consolidated accounts
A company is required to prepare consolidated financial statements if it controls other entities.

more information on accounts requirements

Accounting principles (comparison between Belgian GAAP and IFRS)

A According to the Royal Decree of 18 January 2005, the requisite accounting principles are now as follows:

For all companies
The board of directors of any parent company (whether listed or non-listed) preparing consolidated financial statements can opt to prepare them using IFRS as endorsed by the European Commission and applying on the balance sheet date. Once taken, this decision is irrevocable.

For listed companies (i.e. Belgian companies listed at a European stock exchange)

  • There is an obligation to prepare consolidated financial statements under IFRS as endorsed by the European Commission on the balance sheet date for all financial years beginning on or after 1 January 2005.
  • This deadline is extended to financial years beginning on or after 1 January 2007 for companies.

Disclosures
Disclosure information should be given in the notes, in addition to that which is required by IFRS.

Summary of similarities and differences between Belgian GAAP and IFRS
This comparison has been applicable since of January 2005 even though, despite being a stable platform, IFRS standards may have evolved since that date; up-to-date information can be found on www.iasb.org.

more information on Comparing Belgian GAAP and IFRS

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