Financial Reporting for Lithuanian Companies

AT A GLANCE

Every Lithuanian company must prepare annual financial statements under the Law on Financial Accounting and Reporting (Finansinės apskaitos įstatymas — FAĮ) and either the Lithuanian Business Accounting Standards (verslo apskaitos standartai — VAS) or IFRS, depending on the company’s size and whether it is publicly listed.
Annual financial statements must be approved by the shareholders and filed with the Centre of Registers within 4 months of the financial year end — meaning by 30 April for companies with a December year-end. Late or missing filings attract administrative fines and a JAR non-compliance flag.
Three company size categories under the FAĮ determine the level of financial reporting required: micro enterprises (ataskaita), small enterprises (trumpoji ataskaita), and medium and large enterprises (pilna ataskaita) — each requiring progressively more detailed financial statements.
For foreign-owned Lithuanian companies, financial statements must also be presented in a format that enables the foreign parent to consolidate the Lithuanian entity into group accounts — typically requiring management accounts in IFRS or local GAAP of the parent’s country alongside the statutory VAS statements.
We prepare statutory financial statements under VAS, management accounts for parent company consolidation, and IFRS-compliant reports for Lithuanian companies and the Lithuanian subsidiaries of international groups.

Short answer

Financial reporting for a Lithuanian company covers two distinct obligations: the statutory annual financial statements prepared under VAS (or IFRS for qualifying companies) and filed with the Centre of Registers, and the management reporting prepared for the foreign parent company for consolidation and management purposes. We handle both — preparing the statutory VAS statements in the format required by the FAĮ, and translating or converting the financial data into the format required by the parent’s consolidation framework.

The Lithuanian Financial Reporting Framework

The Law on Financial Accounting and Reporting (FAĮ)

The Law on Financial Accounting and Reporting (Lietuvos Respublikos finansinės apskaitos įstatymas — FAĮ) is the primary statute governing financial reporting obligations of Lithuanian entities. The current FAĮ, in force since 1 January 2016, consolidates and updates the earlier accounting legislation and implements EU Directive 2013/34/EU (the Accounting Directive) into Lithuanian law. The FAĮ defines the applicable accounting standards, the required financial statement components, the filing obligations, and the applicable size categories.

Lithuanian Business Accounting Standards (VAS)

The Lithuanian Business Accounting Standards (verslo apskaitos standartai — VAS) are the primary accounting standards applicable to most Lithuanian companies. VAS are issued by the Accounting Standards Board (Apskaitos standartų taryba — AST), a body of the Lithuanian Ministry of Finance. There are 40 numbered VAS covering all major accounting topics — from general principles (VAS 1) to revenue recognition (VAS 7), leases (VAS 9), provisions and contingent liabilities (VAS 18), financial instruments (VAS 22), and consolidation (VAS 23–26). VAS are conceptually similar to IFRS but are simpler and more rules-based — making them accessible for companies without dedicated finance teams.

IFRS applicability in Lithuania

International Financial Reporting Standards (IFRS) as adopted by the EU are mandatory for Lithuanian companies whose securities are listed on a regulated market (Article 22(1) FAĮ). IFRS are permitted (but not mandatory) for other Lithuanian companies that wish to apply them — particularly where the parent company uses IFRS and consolidation consistency is desired. In practice, most foreign-owned Lithuanian UABs apply VAS for their statutory financial statements and provide IFRS-adjusted management accounts to their foreign parent for consolidation purposes.

Audit requirements

Statutory audit of annual financial statements is mandatory for Lithuanian companies meeting two of the three size thresholds under Article 20 FAĮ: total assets exceeding €1.8 million; net revenue exceeding €3.5 million; and average number of employees exceeding 50. Small companies below these thresholds are not required to have their annual financial statements audited unless: the company is subject to sector-specific audit requirements (financial institutions, insurance companies); the shareholders’ meeting resolves to commission an audit; or a creditor or other party contractually requires it. The audit must be performed by a licensed auditor or audit firm registered with the Lithuanian Chamber of Auditors (Auditorių rūmai).

Company Size Categories and Reporting Requirements

The FAĮ defines three size categories that determine the scope of financial reporting and the components of the annual financial statements that must be prepared. A company’s size category is determined by its performance over the prior two consecutive financial years.

Category	Thresholds (must meet ≥2 of 3)	Required Financial Statements	Audit Required
Micro enterprise (labai maža įmonė)	Total assets ≤ €350,000 Net revenue ≤ €700,000 Employees ≤ 10	Abbreviated balance sheet; abbreviated income statement; notes (minimal). Can omit statement of changes in equity and cash flow statement.	No
Small enterprise (maža įmonė)	Total assets ≤ €4 million Net revenue ≤ €8 million Employees ≤ 50	Balance sheet; income statement; notes. Can omit statement of changes in equity and cash flow statement.	No (unless 2 of 3 thresholds above small exceeded)
Medium enterprise (vidutinė įmonė)	Total assets ≤ €20 million Net revenue ≤ €40 million Employees ≤ 250	Full balance sheet; full income statement; statement of changes in equity; cash flow statement; full notes.	Yes — if exceeds 2 of: €1.8M assets; €3.5M revenue; 50 employees
Large enterprise (didelė įmonė)	Exceeds medium thresholds	Full financial statements as for medium plus additional disclosure requirements. Non-financial reporting statement where applicable.	Yes — mandatory

 Most foreign-owned Lithuanian UABs are micro or small enterprises

The vast majority of foreign-owned Lithuanian UABs fall within the micro or small enterprise category — and therefore have relatively light financial reporting obligations: a balance sheet, an income statement, and minimal notes. The key obligations for these companies are: meeting the 30 April filing deadline, having the accounts approved by the shareholders before filing, and ensuring the financial statements are prepared by a qualified accountant and are consistent with the VAT returns and CIT return filed with VMI. We prepare micro and small enterprise financial statements as part of our standard accounting retainer.

Components of the Annual Financial Statements

Balance sheet (balanso ataskaita)

The balance sheet presents the company’s financial position at the reporting date — its assets, liabilities, and equity. Under VAS, assets are presented in order of increasing liquidity (non-current assets first) and liabilities in order of maturity (long-term first). The balance sheet must balance — total assets must equal total liabilities plus equity. For micro and small enterprises, an abbreviated format is permitted that combines certain line items. The balance sheet date for most Lithuanian companies is 31 December (end of the calendar year), though companies may apply to VMI for a different financial year-end.

Income statement (pelno (nuostolių) ataskaita)

The income statement presents the company’s revenues, expenses, and profit or loss for the reporting period. Lithuanian VAS permits two formats for the income statement: the functional format (classifying expenses by function — cost of sales, selling expenses, administrative expenses) and the nature format (classifying expenses by nature — materials, labour, depreciation). Most Lithuanian companies use the nature format. The income statement must reconcile to the CIT return — the taxable profit for CIT purposes is derived by adjusting accounting profit for non-deductible expenses, exempt income, and tax loss carry-forwards.

Cash flow statement (pinigų srautų ataskaita)

The cash flow statement is required only for medium and large enterprises. It presents cash inflows and outflows during the period, classified into operating, investing, and financing activities. Lithuanian VAS allows both the direct method (presenting actual cash receipts and payments for operating activities) and the indirect method (reconciling profit from the income statement to cash from operations). The indirect method is more common in practice. The cash flow statement is one of the most valuable financial reporting documents for foreign parent companies assessing the Lithuanian subsidiary’s liquidity and funding needs.

Statement of changes in equity (nuosavo kapitalo pokyčių ataskaita)

The statement of changes in equity is required for medium and large enterprises. It presents all movements in equity during the period — share capital changes, retained earnings changes, dividend distributions, and other comprehensive income items. For foreign-owned companies, the equity movement statement is particularly important for confirming that dividends paid to the parent have been correctly declared and that retained earnings are accurately reported.

Notes to the financial statements (aiškinamasis raštas)

The notes provide qualitative and quantitative disclosures that supplement the numerical financial statements. Required note disclosures under VAS vary by company size — micro enterprises can provide minimal notes (accounting policies, any departures from standard policies, and certain required disclosures); small enterprises provide expanded notes; medium and large enterprises provide comprehensive notes. For foreign-owned companies, the notes are the place where related party transactions — including intercompany loans, management fees, and transactions with shareholders — must be disclosed. VMI and potential auditors review the notes for related party transaction consistency with transfer pricing documentation.

Filing Obligations and Deadlines

Centre of Registers filing — 30 April deadline

Annual financial statements must be filed with the Centre of Registers (Registrų centras) within 4 months of the financial year end under Article 24 FAĮ. For companies with the standard December financial year-end, this means the filing deadline is 30 April. The financial statements must be approved by the shareholders before they can be filed — the annual general meeting (or written shareholder resolution) approving the accounts must precede the filing. The Centre of Registers publishes filed financial statements in its public database — they are accessible to any person searching the company’s register entry.

What happens if the deadline is missed

Failure to file financial statements by the 30 April deadline results in: an administrative fine of €140–€1,400 for the responsible director; a JAR non-compliance flag on the company’s register entry — visible to counterparties, banks, and licensing authorities; and the inability to obtain certain certificates from VMI and JAR that are required for contracts, licences, and bank account applications. Companies with a history of late filing face heightened scrutiny from VMI during tax audits.

VMI connection — CIT return filing

The annual corporate income tax return (metinė pelno mokesčio deklaracija) must be filed with VMI by 15 June of the year following the reporting year — a later deadline than the financial statement filing. However, the CIT return is derived from the annual financial statements — the taxable profit is calculated starting from the accounting profit in the income statement. The financial statements must therefore be finalised before the CIT return can be prepared. We coordinate the financial statement and CIT return preparation on the same timetable to ensure consistency.

Non-December financial year-ends

Companies may apply to VMI for a financial year-end other than 31 December — for example, to align with a foreign parent’s reporting calendar. Common non-December year-ends include 31 March, 30 June, and 30 September. The 4-month filing deadline applies from the actual year-end date regardless of when it falls. For foreign-owned companies with non-December year-ends, the AGM and CIT return deadlines adjust accordingly. We advise on whether a non-December year-end is operationally beneficial and manage the VMI application process.

Management Reporting for Foreign Parent Companies

Statutory VAS financial statements meet the Lithuanian legal requirement — but they are not always sufficient for the foreign parent’s management and consolidation purposes. Most international groups require their Lithuanian subsidiaries to provide management accounts in a different format, on a different timetable (monthly or quarterly), and often under different accounting standards (IFRS or the parent’s local GAAP).

The gap between VAS and parent requirements

VAS and IFRS differ in several areas that affect the numbers reported for the same period: lease accounting (IFRS 16 requires right-of-use assets and lease liabilities on the balance sheet; VAS treats operating leases as off-balance sheet); revenue recognition (IFRS 15 five-step model vs. VAS revenue recognition principles); financial instrument measurement (IFRS 9 expected credit loss model vs. VAS incurred loss model); and deferred tax (required under IFRS; not required under VAS for many companies). For a foreign parent consolidating a Lithuanian subsidiary, these differences must be understood and the subsidiary’s numbers adjusted for consolidation.

What management reporting typically includes

Monthly management accounts — balance sheet, income statement, and key metrics on a monthly basis, typically delivered by the 15th of the following month
Budget vs. actual variance analysis — comparing actual performance to the approved budget with commentary on significant variances
Intercompany reconciliation — confirming that the Lithuanian entity’s intercompany balances are consistent with the parent’s records
Cash position and forecasting — current cash balance, short-term cash forecast, and any working capital concerns
KPI reporting — specific key performance indicators required by the parent (e.g., gross margin, headcount, revenue by product line) that are not part of statutory financial statements
Consolidation pack — financial data in the specific format required by the parent’s consolidation software (SAP, Oracle, Hyperion, Tagetik, or Excel-based models)
IFRS-to-VAS bridge — a reconciliation of the VAS annual financial statements to the IFRS consolidated numbers for the purpose of the parent’s statutory audit

 Monthly reporting vs. annual reporting

Most Lithuanian accounting providers deliver annual financial statements as their primary output. For foreign-owned companies managed from abroad, monthly management accounts are equally important — they provide the visibility that the foreign parent needs to make operational and financing decisions about the Lithuanian entity throughout the year. We provide monthly management accounts as standard for clients on our accounting retainer, delivered in the format the parent company specifies. The monthly accounts and the annual statutory accounts are prepared from the same accounting data, ensuring consistency.

Financial Reporting Services We Provide

Annual Statutory Financial Statements (VAS)

Preparation of the annual financial statements in compliance with the FAĮ and applicable VAS — in the format required by the company's size category, approved for shareholder signature, and filed with the Centre of Registers before the 30 April deadline.

Balance sheet and income statement in the appropriate format for the company's size category (micro, small, medium, or large)
Notes to the financial statements — accounting policies, related party disclosures, and all required note disclosures for the applicable size category
Statement of changes in equity and cash flow statement (medium and large enterprises)
Reconciliation to the VAT returns and payroll declarations filed during the year
Shareholder approval documentation — written resolution or AGM minutes approving the annual accounts
Centre of Registers filing — electronic submission via the JAR e-services portal within the statutory deadline
Liaison with the statutory auditor where audit is required

Management Accounts for Parent Company Reporting

Monthly or quarterly management accounts prepared in the format specified by the foreign parent — covering the financial position and performance of the Lithuanian entity in the framework required for consolidation and management decision-making.

Monthly balance sheet and income statement — delivered by the 15th of the following month in the parent's required format
Budget vs. actual variance report — with commentary on material variances
Intercompany balance reconciliation — Lithuanian entity's payables and receivables to other group entities, confirmed against the parent's records
Cash position report and short-term forecast
Consolidation pack — financial data in the format required by the parent's consolidation system
IFRS adjustments — preparing IFRS overlay adjustments for the parent's consolidation where VAS-to-IFRS differences are material (leases, revenue, deferred tax)
Management KPI dashboard — customised to the parent's reporting requirements

Financial Statement Review and Restatement

For companies that have identified errors or inconsistencies in previously filed financial statements — or for companies undergoing investor due diligence — we review, reconcile, and where necessary restate prior period financial statements.

Prior period error identification and assessment — identifying misstatements in previously filed accounts
Restatement preparation under VAS restatement rules (VAS 3 — Accounting Policies, Estimates, and Errors)
Consistency check — comparing financial statements to VAT returns, CIT returns, and payroll declarations for the same period
Due diligence support — preparing financial statement analysis packages for investor or acquirer due diligence
Historical financial data compilation — preparing a multi-year financial summary for a company with historical reporting gaps
Centre of Registers amended filing — filing corrected financial statements to replace previously filed incorrect versions

Group Consolidation Support

For foreign groups with multiple Lithuanian entities — or for Lithuanian companies with foreign subsidiaries — we provide consolidation accounting support, eliminating intercompany transactions and preparing the combined group financial picture in accordance with the applicable standards.

Multi-entity consolidation — combining the financial statements of multiple Lithuanian entities into a consolidated set
Intercompany transaction elimination — eliminating intercompany sales, loans, dividends, and other transactions for consolidation purposes
Minority interest calculations — where one of the entities is partially owned by an external shareholder
Goodwill and acquisition accounting — accounting for business combinations under VAS 23–26 or IFRS 3
Foreign currency translation — converting Lithuanian entity accounts from EUR to the parent's functional currency where required
Consolidation documentation — preparing the consolidation working papers required by the group auditor

Financial Reporting Services Pricing

Annual financial statement preparation is priced by company size category. Monthly management accounts are priced by volume and format complexity as part of the accounting retainer.

Service	Price
Annual financial statements — micro enterprise Balance sheet, abbreviated income statement, minimal notes; Centre of Registers filing	From €250
Annual financial statements — small enterprise Balance sheet, income statement, expanded notes; Centre of Registers filing	From €400
Annual financial statements — medium enterprise Full financial statements including cash flow and equity statement; Centre of Registers filing	From €650
Annual financial statements — large enterprise Full statements with extended disclosures and audit liaison; quoted individually	On request
Shareholder approval documentation (AGM package) Written resolution or AGM minutes approving accounts; included in corporate secretary retainer	€400
Statutory audit liaison Coordinating auditor requests, providing supporting documentation, and responding to audit queries	€300
Monthly management accounts — standard format Balance sheet and P&L in parent’s required format; delivered by 15th of following month	Included in accounting retainer
Monthly management accounts — IFRS overlay IFRS adjustments for leases, revenue, and other VAS-IFRS differences; varies by complexity	€200–€400/month additional
Consolidation pack (monthly) Financial data in group consolidation system format; intercompany reconciliation	€150–€300/month additional
Budget vs. actual variance report Written variance commentary for the monthly management accounts package	€150/month
Financial statement review (prior period) Reviewing one prior year’s financial statements for consistency with VAT/CIT filings and VAS compliance	€500
Financial statement restatement (one year) Correcting and refiling one year’s financial statements; VAS 3 restatement note preparation	From €600
Multi-year financial history compilation Preparing 3–5 years of consistent financial statements for due diligence or audit purposes	On request
Group consolidation support (up to 3 Lithuanian entities) Annual intercompany elimination and consolidated balance sheet/income statement	€500/year
Non-financial reporting statement (large companies) Sustainability and non-financial disclosure under EU Directive 2014/95/EU; quoted by scope	On request
Non-December financial year-end advisory and application VMI application for non-December financial year-end; deadline adjustment advisory	€300

Frequently Asked Questions

Lithuanian Business Accounting Standards (VAS) are the primary accounting standards for most Lithuanian companies — they are simpler, more rules-based, and more accessible than IFRS. IFRS are mandatory only for publicly listed Lithuanian companies and permitted (but not required) for others. The key practical differences are: lease accounting (IFRS 16 requires leases to be recognised on the balance sheet as right-of-use assets; VAS treats most operating leases as off-balance sheet expenses); revenue recognition (IFRS 15’s five-step model can give different timing and amount results than VAS principles); financial instruments (IFRS 9’s expected credit loss model requires earlier provisioning than VAS); and deferred tax (required under IFRS for most timing differences; optional under VAS for small companies). For a foreign parent consolidating a Lithuanian subsidiary, these differences typically need to be quantified and the Lithuanian numbers adjusted for the IFRS consolidated accounts.

A statutory audit is mandatory for Lithuanian companies that exceed two of the three thresholds under Article 20 FAĮ: total assets exceeding €1.8 million; net revenue exceeding €3.5 million; and average number of employees exceeding 50. Additionally, audit is mandatory regardless of size for: banks, insurance companies, and other regulated financial institutions; companies that receive state or EU funding subject to audit requirements; and companies whose shareholders’ agreement or loan covenants require an audit. For companies below the mandatory audit thresholds, an audit can be voluntarily commissioned — which we recommend for any company that is planning an investment round, a sale process, or a significant credit application. We coordinate statutory audit engagements with licensed audit firms.

Missing the 30 April deadline results in an administrative fine of €140–€1,400 for the director responsible for the filing, applied by the Centre of Registers. The company’s JAR entry will show a non-compliance flag visible to any counterparty, bank, or authority that searches the company. This flag affects: bank KYC assessments (banks ask why the accounts are not filed); government licence applications (the VMVT, Bank of Lithuania, and others check JAR compliance); and creditworthiness assessments. The penalty for late filing is modest — but the reputational and operational consequences of a JAR non-compliance flag are commercially significant. We initiate the annual accounts process in March for all accounting clients to ensure the April deadline is met with time to spare.

No — annual financial statements filed with the Centre of Registers must be in Lithuanian under Article 7 FAĮ. Documents filed in any other language will be rejected. For foreign-owned companies whose management does not read Lithuanian, we provide an English translation or an English summary of the financial statements alongside the Lithuanian statutory version — as a management document, not as the filed version. The shareholder approval resolution approving the accounts can be prepared in both English and Lithuanian simultaneously for the convenience of foreign shareholders.

Yes — we provide management accounts and consolidation data in the format specified by the parent company’s consolidation system, whether that is SAP, Oracle, Hyperion, Tagetik, or an Excel-based template. We ask the parent’s finance team for the specific template, chart of accounts mapping, and any consolidation adjustments required at the engagement setup stage — and we configure our reporting to deliver data in that format from the first monthly close. The mapping between Lithuanian VAS accounts and the parent’s chart of accounts is established once and maintained throughout the engagement. IFRS overlay adjustments are also documented and applied consistently each period.

Related party disclosures are notes to the financial statements that describe transactions between the company and its related parties — including its shareholders, directors, and companies under common ownership. Under VAS 33 (Related Party Disclosures), Lithuanian companies must disclose the nature of the related party relationship, the types of transactions, and the amounts involved. These disclosures matter for several reasons: VMI uses them in transfer pricing audits to identify intercompany transactions that require arm’s length pricing; banks review them during KYC and credit assessments; and investors and acquirers review them during due diligence to understand the financial relationships between the company and its owners. Inadequate related party disclosures — or disclosures that are inconsistent with the transfer pricing documentation — are a common red flag in both VMI audits and investor due diligence.

Statutory financial statements meet the Lithuanian legal requirement but are not always sufficient for a foreign parent’s management needs. The key limitations of statutory VAS statements for management purposes are: they are annual — delivered 3–4 months after the year end, giving no visibility during the year; they are prepared under VAS which may differ from the parent’s reporting standards; and they do not include budget comparisons, variance analysis, or the KPI metrics the parent tracks. Monthly management accounts provide the ongoing financial visibility that enables the parent to make operational and financing decisions about the Lithuanian subsidiary throughout the year. For foreign-owned companies where the parent’s investment decision depends on Lithuanian entity performance, monthly management accounts are as important as the annual statutory statements.

Ready to set up financial reporting for your Lithuanian company?

Contact us to discuss your company’s size, year-end date, and any group reporting requirements from your parent company. We will confirm the applicable VAS requirements, design the management reporting format, and provide a fixed-fee quote for the annual statutory accounts and any management reporting. We begin with the next available month-end.