Plans to reduce administrative burden to business

Changes planned:

  • Opportunity to apply either business accounting standards or international accounting standards unless the legislation requires contrary.
  • Companies that are not part of a business group and trade or plans to trade in regulated markets will be able to prepare financial statements according to business accounting standards.
  • Economic entities will be able to choose which publicly known source of information (the European Central Bank, the Central Bank of the Republic of Lithuania or other publicly known, eg. Bloomberg) to use for euro and foreign currencies exchange rate and which daily rate to apply(a day of a transaction, a day before a transaction).
  • The requirement to sign invoices is to be abolished.
  • The development of business accounting standards is transferred to the Ministry of Finance while the Authority of Audit and Accounting will be responsible for summarised explanations and consultations.

The draft legislation was released to the Parliament of the Republic of Lithuania and should constitute a single clear regulation on accounting applied by economic entities, if approved.

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