The glossary to understand and take action

Cut-off

Principle requiring expenses and income to be allocated to the financial year to which they relate, independently of payment alone.

Notion comptable, fiscale ou juridique · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Definition and points to distinguish

The review concerns in particular deliveries, services and periods covered around the closing date. Invoices received after closing and expenses paid in advance may require examination. Supporting documents and the substance of the transaction must justify the treatment adopted.

In your file

What this changes in practice

Cut-off allocates income and expenses to the period to which they relate, even where payment occurs in a different period. It requires an examination of services performed, deliveries and periods covered around the closing date. The payment date is therefore not the only criterion. Adjusting entries must be justified and monitored in the following financial year.

A scenario to help you understand

Educational example

Insurance paid at year-end also covers the following year. The company allocates the expense according to the period covered and the applicable accounting framework.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Examiner les opérations autour de la clôture
  • Identifier les périodes couvertes
  • Justifier les régularisations

The practical question

Find out more

Comment traiter une facture reçue après la clôture pour un travail déjà réalisé ?

La date de réception n’est pas nécessairement celle à laquelle la charge se rapporte. Vérifiez la période de réalisation et les règles de rattachement pour enregistrer la régularisation appropriée. Conservez l’estimation ou la pièce qui justifie le montant, puis rapprochez-la de la facture définitive. Le paiement ultérieur constitue encore une autre date.

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

Financial yearThe financial year is the period over which a company prepares its accounts and determines its result.Accounting closeThe accounting close encompasses the work that finalises the accounts for a financial year and makes it possible to prepare the financial statements.Accounting documentAn accounting document is a document that substantiates a transaction: an invoice, statement, contract or other evidence appropriate to its nature.Income statementThe income statement, also called the profit and loss account in Luxembourg accounts, matches income and expenses for a period.Annual accountsAnnual accounts present the entity’s financial position and result at the end of a financial year, together with the documents required under its regime.ImpairmentA value adjustment considered when an asset has suffered a loss in value that must be taken into account under the applicable rules.

Put it into practice

Explore further with our guides

Practical guideAccounting close: preparing the year-end filePractical guideAccounting obligations of an SARL in Luxembourg: organising compliance

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.