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Key Terms

  • Plan Comptable Normalisé (PCN): Luxembourg's mandatory standardized accounting framework
  • PCN 2011: The foundation framework establishing modern Luxembourg accounting standards
  • PCN 2020: The current PCN standard with enhanced digital integration and IFRS alignment
  • Account Class: One of seven main categories in the PCN (Classes 1-7)
  • Class 1: Capital, Provisions, Financial Debts (equity and long-term obligations)
  • Class 2: Fixed Assets and Establishment Costs (long-term assets)
  • Class 3: Inventory Accounts (current inventory)
  • Class 4: Third-Party Accounts (customers, suppliers, VAT, social charges)
  • Class 5: Financial Accounts (cash and bank accounts)
  • Class 6: Expense Accounts (all business expenses)
  • Class 7: Revenue Accounts (all business revenues)
  • Account Numbering: The hierarchical system for identifying PCN accounts
  • Sub-Account: Detailed accounts within a main PCN account (e.g., 411.001, 411.002)
  • Chart of Accounts: Complete list of accounts used by a business
  • Transaction Mapping: Process of assigning transactions to appropriate PCN accounts
  • Double-Entry Bookkeeping: Accounting system where each transaction affects at least two accounts
  • RCS Compliance: Requirement that financial statements filed with Registre de Commerce et des Sociétés use PCN structure
  • eCDF Integration: Electronic filing system that integrates with PCN account structure
  • FAIA: Fichier d'Audit Informatisé AED - audit file format that relies on PCN classifications
  • Custom Accounts: Sub-accounts created by businesses to meet specific operational needs while maintaining PCN compliance
  • Accounting Manual: Documentation explaining account structure, usage, and procedures

End of Chapter 26 Key Terms