Reform of the General Chart of Accounts: What Changes in 2025

As of January 1, 2025, a major reform of the General Chart of Accounts (PCG) comes into effect. This evolution aims to modernize and simplify the accounting of French companies, while promoting their transition to digital management.

The result: more readable financial statements, better harmonization with international standards, and concrete impacts on the calculation of results and employee compensation policy.

Why a Reform of the General Chart of Accounts?

This reform, resulting from ANC regulation n°2022-06, pursues several objectives:

• Adapting the general chart of accounts to the increasing digitalization of accounting processes.
• Revising the presentation models of annual accounts.
• Eliminating obsolete accounts and creating new accounts more adapted to current economic realities.
• Harmonizing French practices with international standards.

Early application has been possible since December 30, 2023, but it will become mandatory for all fiscal years beginning on or after January 1, 2025.

The National Council of the Order of Chartered Accountants (CNOEC) has published a correspondence table between the current chart of accounts and the new chart of accounts resulting from ANC regulation n°2022-06.

The Major Changes in the General Chart of Accounts

Impact on the Calculation of Exceptional Income

The reform redefines the notion of exceptional income. From now on, only income and expenses directly related to major and unusual events will be classified as exceptional.

• Major event: An event is considered major if it has sufficient consequences to influence the judgment of users of financial statements.
• Unusual event: The event must be unrelated to the normal operations of the entity and its probability of recurrence must be very low.

Modernization of Financial Statements

The reform introduces new presentation models for financial statements. Four models will now be used, including two for the balance sheet and two for the income statement:

• Balance sheet: Two models will be available, one basic and one condensed, in table form.
• Income statement: Two models as well, one basic and one condensed, in list form.

These simplified models aim to facilitate the understanding of financial statements and improve their comparability. Moreover, the possibility of using more detailed models will be preserved, provided they respect the structure set out by the PCG.

Deletion and Creation of Accounts

The general chart of accounts is deeply restructured:

• Deletion of more than 150 accounts.
• Modification of the numbering of about 90 accounts.
• Creation of about ten new accounts.
• Revision of the wording of about twenty accounts.

A correspondence table is provided by the National Council of the Order of Chartered Accountants to facilitate the transition.

Enhancement of the Accounting Appendix

The appendix to the financial statements will be enhanced to offer increased transparency:

• Details of exceptional income and expenses: The appendix will need to provide detailed information on these elements.
• Standardized tables: In addition to legal information, tables will be integrated to allow for better presentation and understanding of financial data.
• Adaptation to specific needs: Some tables will be indicative and can be adapted according to the specific needs of companies.

General Accounting Plan 2025: What are the Implications for your Company?

The modifications brought by the reform of the General Accounting Plan will have several practical consequences for your accounting and financial management. Here are the main points to watch:

• Update of accounting software: Verify that your accounting software complies with the new rules, particularly regarding the accounting of exceptional income and expenses, as well as new presentation models.
• Staff training: Ensure that your accounting teams fully understand the new rules and are able to apply them correctly.
• Review of employee compensation policy: The integration of exceptional income and expenses into the VA could lead to a variation in profit-sharing and thus amounts to be paid to employees. The same applies to the modification of profit-sharing bases.

How to Prepare Well for the Implementation of the Reform?

Our firm assists you in implementing these new rules and remains at your disposal to answer all your questions. Here are the main steps to follow:

1. Review of 2024 accounts: Verify that your 2024 accounts are prepared in compliance with the old rules while anticipating the transition to the new ones. Analyze, if necessary, the benefits of early application of this reform.
2. Implementation of new practices in 2025: The new rules will come into effect for financial years beginning on January 1, 2025.
3. Personalized support: We offer individualized follow-up to adapt your accounting practices to the new requirements.

Conclusion and Next Steps

We remain at your disposal to assist you in this important transition. Although the reform of the General Accounting Plan may seem complex, it offers real opportunities to simplify and modernize the management of your accounts.