Annual Financial Statements Lithuania
Annual Financial Statements in Lithuania – Ensure Transparency, Stay Compliant
Annual financial statements are a critical aspect of doing business in Lithuania. They serve not only as a legal requirement but also as a key indicator of financial transparency, business integrity, and operational performance. Whether you’re running a small local business or managing a multinational operation in Lithuania, properly prepared and submitted annual financial statements are essential.
At UAB “AM Law”, we provide full-service support for the preparation, audit coordination, and submission of annual financial statements. Our goal is to ensure every document complies with national laws while also serving the strategic needs of your business.
What Are Annual Financial Statements?
Annual financial statements are standardized reports that present a company’s financial performance and position over a one-year period. They reflect:
- Revenues and expenses
- Assets and liabilities
- Shareholder equity and capital structure
- Cash flow and liquidity
- Financial policies and disclosures
In Lithuania, every legal entity must prepare annual financial statements at the end of its financial year and submit them to the Register of Legal Entities (Centre of Registers).
Who Is Required to Submit Annual Financial Statements?
Under Lithuanian legislation, the obligation to prepare and submit annual financial statements applies to:
- Private Limited Liability Companies (UAB)
- Public Limited Liability Companies (AB)
- General Partnerships and Limited Partnerships
- Cooperatives
- Branches and representative offices of foreign companies
- Associations and non-profits (in certain cases)
Even if the company is inactive or non-operational, a simplified version of financial statements may still be required.
Structure of Annual Financial Statements in Lithuania
The composition of annual financial statements in Lithuania depends on the size and nature of the company. However, standard reports typically include the following:
1. Balance Sheet (Statement of Financial Position)
A detailed overview of the company’s assets, liabilities, and equity at the end of the financial year.
2. Profit and Loss Statement (Income Statement)
This statement summarizes all revenues and expenses, showing the company’s profitability during the fiscal year.
3. Cash Flow Statement (for larger entities)
A breakdown of cash inflows and outflows from operating, investing, and financing activities, required for medium and large enterprises.
4. Statement of Changes in Equity
Describes changes in ownership, retained earnings, and reserves throughout the year.
5. Explanatory Notes
Supporting documentation and descriptions of accounting principles, methods, and key events affecting the financial position.
6. Management Report (when applicable)
Required for larger companies and those meeting certain criteria, this report outlines operational results, risk factors, and future business perspectives.
Applicable Accounting Standards in Lithuania
Companies in Lithuania must prepare their annual financial statements using either:
- Lithuanian Business Accounting Standards (BAS) – most common for local SMEs
- International Financial Reporting Standards (IFRS) – required for publicly listed companies and voluntary for larger businesses with international operations
We support both BAS and IFRS, ensuring complete legal compliance and audit-readiness.
How AM Law Can Help
At UAB “AM Law”, we offer a full range of services related to annual financial statements in Lithuania:
✔ Preparation and Review
We create and review all required statements and disclosures, aligning with either BAS or IFRS depending on your business needs.
✔ Financial Data Reconciliation
Our team ensures that every figure is accurate and traceable, minimizing audit risks and ensuring consistency across your records.
✔ Explanatory Notes and Policy Documentation
We draft detailed notes and policy explanations to ensure full transparency and regulatory alignment.
✔ Translation Services
We offer multilingual support—Lithuanian, English, and Russian—for international shareholders and stakeholders.
✔ Submission to Authorities
We handle the secure electronic filing of your statements with the Centre of Registers, ensuring timely compliance.
✔ Coordination with Auditors
For companies subject to mandatory audits, we coordinate with external auditors to prepare accurate and audit-ready documents.
Audit Requirements for Lithuanian Companies
An audit of annual financial statements is mandatory if the company meets at least two of the following conditions:
- Revenue exceeds €3.5 million
- Assets exceed €1.8 million
- More than 50 employees on average per year
Even if an audit is not required by law, some companies opt for voluntary audits to enhance transparency or meet investor/lender requirements.
Why Choose AM Law for Annual Financial Reporting?
Experience Across Sectors
We have worked with companies in manufacturing, logistics, IT, retail, professional services, and more—each with its own reporting challenges.
Local Knowledge, International Standards
We bring in-depth knowledge of Lithuania’s regulatory landscape and can integrate IFRS standards for internationally operating businesses.
Legal + Financial Integration
Because we are a multidisciplinary team, we can spot and address legal and tax issues that arise during financial statement preparation.
Transparent Pricing
We offer cost-effective services with no hidden fees, allowing you to budget confidently for year-end compliance.
Fast Turnaround and Deadlines Management
Our workflow is optimized to meet tight deadlines without compromising on quality or accuracy.
Secure Your Business Future – Let AM Law Handle Your Annual Financial Reporting
Preparing accurate and compliant annual financial statements is more than a regulatory checkbox—it’s a strategic move that enhances trust, supports financing, and demonstrates good governance.
Let UAB “AM Law” be your trusted partner in navigating Lithuania’s financial reporting landscape.
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