Balance Sheet Preparation Lithuania
Balance Sheet Preparation in Lithuania – Accurate, Compliant, and Professionally Delivered
In Lithuania, preparing an accurate and compliant balance sheet is a fundamental aspect of financial reporting. It is not just a statutory requirement—it is an essential financial document that reflects the true financial health of your business at any given point in time. Whether you’re a small local enterprise or a subsidiary of an international group, a properly structured balance sheet plays a crucial role in supporting business decisions, securing investment, and meeting regulatory obligations.
At UAB “AM Law”, we provide expert balance sheet preparation services in Lithuania, ensuring clarity, accuracy, and full compliance with Lithuanian Business Accounting Standards (BAS) or International Financial Reporting Standards (IFRS), depending on your business needs.
What Is a Balance Sheet?
A balance sheet, also known as the Statement of Financial Position, is a financial report that summarizes a company’s assets, liabilities, and shareholders’ equity at a specific date—typically the end of the financial year.
It follows the fundamental accounting equation:
Assets = Liabilities + Equity
This equation must always balance, giving stakeholders a snapshot of what a company owns, owes, and the net worth attributable to its owners.
Who Needs a Balance Sheet in Lithuania?
The preparation and submission of a balance sheet is a legal requirement for most registered entities in Lithuania, including:
- Private limited liability companies (UAB)
- Public limited companies (AB)
- Partnerships and cooperatives
- Branches and representative offices of foreign companies
- NGOs, associations, and foundations (if applicable)
Even businesses that are inactive during the financial year are still required to submit a simplified version of their annual financial statements, including a basic balance sheet.
Key Components of a Lithuanian Balance Sheet
The balance sheet is typically divided into two main sections: Assets and Liabilities & Equity.
1. Assets
These are resources owned by the company, classified into:
- Non-current assets: property, equipment, long-term investments, and intangible assets like patents.
- Current assets: cash, accounts receivable, inventories, and other short-term assets.
2. Liabilities
Obligations the company owes to external parties, divided into:
- Long-term liabilities: bank loans, bonds payable, and other debts due after one year.
- Short-term liabilities: accounts payable, salaries, taxes, and other obligations due within one year.
3. Equity
This represents the owners’ residual interest in the company and includes:
Net profit (or loss) of the year
Share capital
Retained earnings
Revaluation reserves
Balance Sheet Preparation Under BAS or IFRS
Lithuanian Business Accounting Standards (BAS)
BAS is the standard accounting framework for small and medium-sized Lithuanian businesses. It provides specific guidelines on how to classify, value, and report assets and liabilities.
International Financial Reporting Standards (IFRS)
IFRS is applied by publicly listed companies and voluntarily adopted by large or international firms. It offers more complex and globally recognized accounting rules, particularly useful for foreign investors and consolidated group reporting.
We at AM Law are proficient in both standards and will recommend the appropriate framework based on your company’s structure, reporting needs, and legal obligations.
Our Balance Sheet Preparation Services
Our firm offers comprehensive balance sheet services, tailored to your specific business size, structure, and reporting framework. These include:
✔ Full Financial Review
We begin by reviewing your general ledger, financial transactions, and supporting documentation to ensure data completeness and consistency.
✔ Balance Sheet Drafting
Our accountants prepare your balance sheet according to either BAS or IFRS, ensuring accurate classification and valuation of every line item.
✔ Reconciliation and Adjustments
We reconcile key balances such as accounts receivable, payables, and bank accounts to correct discrepancies and ensure your balance sheet is error-free.
✔ Notes and Supporting Schedules
We prepare all necessary footnotes and schedules to explain significant items and valuation methods, ensuring transparency and regulatory compliance.
✔ Consolidated Balance Sheets
For companies with multiple subsidiaries, we prepare consolidated balance sheets in accordance with IFRS, eliminating intercompany transactions and balances.
✔ Translation and Localization
We can provide the balance sheet in Lithuanian, English, or Russian—ideal for foreign investors or internal reporting.
Why a Properly Prepared Balance Sheet Matters
An accurate balance sheet is essential for:
- Regulatory compliance with Lithuanian laws
- Audit readiness and financial transparency
- Obtaining bank financing and investment
- Company valuation for mergers or sales
- Strategic decision-making by management
- Tax planning and dividend calculations
It’s also a vital part of your annual financial statements, which must be submitted to the Register of Legal Entities.
Common Challenges in Balance Sheet Preparation
Many companies face the following issues when preparing a balance sheet:
- Misclassification of assets or liabilities
- Inaccurate fixed asset valuation or depreciation
- Missing reconciliation of payables or receivables
- Errors in retained earnings or net income carryovers
- Non-compliance with the applicable accounting framework (BAS or IFRS)
AM Law helps you avoid these pitfalls through professional oversight, deep local knowledge, and strict attention to detail.
Why Choose AM Law?
Industry Experience
We have extensive experience preparing balance sheets for businesses in diverse sectors—technology, manufacturing, logistics, retail, and professional services.
Multidisciplinary Team
Our accountants work hand-in-hand with legal and tax professionals to ensure your financial reports align with broader business strategies.
Personalized Attention
Every business is different. We deliver balance sheets tailored to your unique capital structure, reporting goals, and compliance obligations.
Compliance Guarantee
We prepare every balance sheet in accordance with the latest regulations from the State Tax Inspectorate (VMI), Register of Legal Entities, and relevant EU directives.
Get Expert Help with Balance Sheet Preparation in Lithuania
Don’t leave your financial reporting to chance. Let UAB “AM Law” ensure that your balance sheet is a true and accurate reflection of your company’s financial health.
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