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CalculateFinancial statements in Lithuania shall be made in accordance with the Law on Financial Reporting by Undertakings, the Law on Consolidated Financial Reporting by Groups of Undertakings, Accounting Law and other laws and regulations.
A company must prepare financial statements for each financial year, including the following main financial reports:
The main principles of accounting policy used when preparing financial statements and notes explaining provided information must also be included. The explanatory note must state financial reporting standards in accordance with which the financial statements have been made.
In order to determine the set of financial statements, companies are classified into very small, small, medium-sized and large.
1. Very small companies are companies where at least two indicators do not exceed the following amounts on the last day of the financial year:
2. Small companies are companies where at least two indicators do not exceed the following amounts on the last day of the financial year:
3. Medium-sized companies are companies where at least two indicators do not exceed the following amounts on the last day of the financial year:
4. Large companies are companies where at least two indicators exceed the amounts stated in clause 3 on the last day of the financial year.
The set of financial statements of small companies consists of the following financial statements:
Besides financial statements, small companies can at their discretion prepare a cash flow statement and a statement of changes in equity.
Very small companies are allowed to not prepare explanatory notes; in such a case, their set of financial statements consists of the following financial statements:
The set of financial statements of medium-sized and large companies consists of the following financial statements:
Financial statements must be presented at the annual meeting of shareholders and approved by shareholders. Financial statements are made on a constant basis every year.
In the case of late filing of financial statements or failure to file them, the company may face fines and other penalties, including its compulsory liquidation.
Audit of annual financial statements, and audit of interim financial statements, when necessary or when determined by other laws, shall be done in accordance with the Law on the Audit of Financial Statements and regulations. Audit is compulsory for companies when the following conditions are met:
Public sector organizations are also subject to compulsory audit in accordance with the Public Sector Accountability Law (if their activity is at least 50% financed by the state and/or municipal budget).
Financial year of a company lasts 12 months. Companies choose their financial year based on the nature of their activity. Financial year may not be changed more often than once in 5 years. This provision does not apply if the company changes its financial year to a financial year coinciding with a calendar year.
The first financial year of a company starting its economic activity is a period from the day of its establishment to the end of the financial year, but not more than 18 months.
During 4 months after the end of the reporting period, the company must prepare an annual financial report. Then the annual financial report must be approved at an annual meeting of shareholders. Financial statements and the annual report along with an auditor’s opinion (in the case of an audit) shall be presented to the holder of the register of legal entities (Registrų centras) within 30 days after the general meeting of shareholders has made the decision to approve it.
On 1 July 2024, changes came into force according to which late filing of financial statements results in a penalty of 200 to 1,450 EUR imposed on the company’s managers. In addition, legal entities that file financial statements late or do not file them at all may be liquidated and struck off from the Register of Legal Entities (the Register may initiate liquidation). Companies that have not filed financial statements get a special mark that warns business partners about higher risk when cooperating with the company.
The registrar shall be provided with a set of annual financial statements and a set of annual consolidated financial statements, which is regulated by the separate Consolidated Financial Reporting Law. Companies must prepare a consolidated annual report in addition to their annual consolidated financial statements.
The parent company must prepare annual consolidated financial statements. Financial statements of the parent company and all its subsidiaries must be consolidated irrespective of where the registered offices of subsidiaries are located.
A company that is a subsidiary of a subsidiary of a group of companies is considered a subsidiary of the parent company of that group of companies, and its financial statements must be consolidated.
1. Small groups of companies are groups of companies where at least two general indicators of annual financial statements of the parent company do not exceed the following amounts on the last day of the financial year:
2. Groups of medium-sized enterprises are groups of enterprises where at least two general indicators of annual financial statements of the group of enterprises do not exceed the following amounts on the last day of the financial year of the parent company:
3. Large groups of companies are groups of companies where at least two general indicators of annual financial statements of the parent company exceed the amounts stated in clause 2 on the last day of the financial year.