Accounting is the process of identification, measurement and presentation of economic information, which enables information users to take economic decisions. This is a complex process depending on people, and developed for them. Reporting is the final stage of accounting and is a system of summarising the interdependent indicators received, and describing the results of the entire economic activity for the accounting period. Properly prepared reporting helps to analyse and assess the activities, and to manage, monitor and identify the deficiencies, and provide measures to remove them.
The Ministry of Finance provides general methodical guidance for accounting in compliance with the legal acts of the Republic of Lithuania, and pursuant to the International Accounting Standards and International Public Sector Accounting Standards.
This covers the following:
- preparing and taking part in the preparation of drafts of legal acts — regulation of accounting and financial reporting complying with the European Community Council directives, International Accounting Standards and International Public Sector Accounting Standards;
- preparing drafts of legal acts regulating the audit of financial statements complying with the European Community Council directives;
- coordinating drafts of legal acts of other state institutions and authorities, and administrative units of ministries, the provisions of which are related to bookkeeping, financial reporting and auditing.