Accounting is a system of registration, grouping and summarising of economic transactions and economic events in their monetary expression, intended to get the necessary information for making economic decisions and/or compilation of financial statements.
Regulation and application
The Republic of Lithuania Accounting Lawdefines the organisation of accounting, accounting documents and registers and their storage, correction of mistakes, responsibility for organisation of accounting and storage of accounting documents.
This Law shall apply to:
The procedure of accounting of farmers’ farms, residents engaged in individual activities, foreign economic entities, and non-profit seeking legal persons with limited civil liability, is established by the Government or an institution authorised by it to the extent that the Accounting Law does not provide otherwise.
Financial institutions, except credit unions, shall handle accounting in accordance with the International Accounting Standards. Credit unions shall handle accounting in accordance with the Business Accounting Standards.
Other profit-seeking legal persons with limited civil liability shall handle accounting in accordance with the Business Accounting Standards prepared in compliance with European Union law and the International Accounting Standards. The Ministry of Finance of the Republic of Lithuania shall prepare and approve the Business Accounting Standards.
The entities whose securities are traded on a regulated market and that are obliged to draw up consolidated financial statements shall handle accounting to ensure that the consolidated financial statements are drawn up in accordance with the International Accounting Standards.
In handling accounting and preparing financial statements, public sector entities shall follow the Republic of Lithuania Law on Public Sector Reporting and the Public Sector Accounting and Financial Reporting Standards.