BASIC REQUIREMENTS FOR THE ORGANISATION OF ACCOUNTING
- Each company must prepare and submit an annual return to the Lithuanian Canter of Registers for within 5 months from company’s financial year.
- Financial year can start on any month of a calendar year
- Accounting cannot be handled by the head of the company.
- All business transactions must be recorded in accounting programs.
- All business transactions must be documented.
- Accounting should provide a reliable, objective, and comparable view of the company’s financial situation, performance, and cash flows.
- All accounting documents must be kept in the archive for at least 10 years.
ANNUAL FINANCIAL REPORT
- Annual reporting is mandatory for all companies registered in Lithuania, even for companies with no activities during the financial year.
- Annual report must be confirmed at yearly General Meeting of Shareholders within 4 months after the end of the financial year.
- Financial year usually starts from 1st of January, but it can start on any month of a calendar year and must have twelve consecutive months.
- The annual report must be submitted to the Lithuanian Centre of Registers within 30 days from the general meeting.
The financial year starts from any month of the calendar year, but must have twelve consecutive months at the end of which the books of accounts are closed and the financial statements of the company are prepared. As a rule, in the vast majority of Lithuanian companies the financial year coincides with the calendar year.
Each company registered in Lithuania must submit an annual report to the Lithuanian Business Register within six months after the end of the financial year. The annual report must be prepared in Lithuanian in the official currency of Lithuania (Euro).
The annual report is mandatory for all companies registered in Lithuania, even if the company had no activity during the financial year. The deadline for submitting the annual report is six months after the end of the financial year of the company, so if the financial year of your company ends on 31 December, the deadline for submitting the report is 30 June of the following year.
All accounting must be completed before the annual report is prepared.
The annual report should include the following:
- Management Report
- Income statement
- Cash flow report
- Report on changes in capital
- Notes to annual accounts
What must be included in the annual report, depending on the company scale: