GAAP Financial Reporting Lithuania
GAAP Financial Reporting in Lithuania – Accurate, Compliant & Trusted Financial Reporting
For any business operating in Lithuania or expanding into the Baltic region, maintaining accurate and transparent financial records is not just a good practice—it’s a legal requirement. At the core of this compliance lies GAAP financial reporting, which ensures your business financials are clear, comparable, and fully aligned with regulatory expectations.
At UAB “AM Law”, we provide comprehensive support for companies that need to prepare their financial statements under Generally Accepted Accounting Principles (GAAP)—whether based on Lithuanian Business Accounting Standards (BAS) or aligned with International GAAP or IFRS for international operations.
What is GAAP in the Context of Lithuania?
In Lithuania, the equivalent of GAAP is the Lithuanian Business Accounting Standards (BAS). These standards are established by the Authority of Audit, Accounting, Property Valuation and Insolvency Management and are the mandatory framework for most small and medium-sized enterprises.
For larger companies, listed entities, and foreign-owned subsidiaries, International Financial Reporting Standards (IFRS) are often adopted, especially when international comparability is essential.
Who Needs GAAP-Compliant Reporting in Lithuania?
Whether you’re a local startup or an international enterprise, you’ll likely fall under the scope of GAAP financial reporting in Lithuania if you are:
- A Private Limited Company (UAB)
- A Public Limited Company (AB)
- A Branch of a foreign company
- A Non-profit entity with commercial operations
- A Holding or investment company
- A company receiving EU structural funds or external investment
Even small businesses are required to follow Lithuanian GAAP when submitting annual financial statements.
Key Objectives of GAAP Financial Reporting
GAAP (BAS or IFRS-based) reporting is designed to ensure:
- Consistency in financial statements across companies and industries
- Transparency in how income, expenses, assets, and liabilities are recorded
- Reliability for third parties like auditors, investors, and tax authorities
- Comparability of performance across time periods and jurisdictions
It also lays the foundation for strong internal controls, better financial planning, and improved decision-making.
Core Components of GAAP Financial Statements in Lithuania
GAAP-compliant financial reporting includes a full set of financial documents prepared according to the rules of either BAS or IFRS.
1. Balance Sheet (Statement of Financial Position)
Reports the company’s financial standing at a given moment—detailing assets, liabilities, and shareholders’ equity.
2. Profit and Loss Statement (Income Statement)
Shows the business’s financial performance over a defined period, including revenue, operating costs, and net profit/loss.
3. Cash Flow Statement
Illustrates how cash moves through the business across operational, financing, and investment activities.
4. Statement of Changes in Equity
Details movements in equity, including share capital, retained earnings, and revaluation reserves.
5. Explanatory Notes
Provide vital context, accounting policies, and detailed breakdowns to support the figures presented.
Our GAAP Financial Reporting Services
We offer end-to-end financial reporting solutions, ensuring full compliance with Lithuanian accounting legislation.
✔ Financial Statement Preparation
We prepare complete sets of financial reports in accordance with Lithuanian GAAP (BAS) or IFRS, depending on your needs.
✔ General Ledger Review
Our accountants clean and verify your books before compiling formal financial statements.
✔ Audit-Ready Documentation
Whether your business is subject to statutory audit or voluntary review, we provide all the necessary disclosures and notes for auditor compliance.
✔ Bilingual Reporting
Our reports are available in Lithuanian and English—perfect for companies with foreign ownership or cross-border operations.
✔ Conversion to IFRS
Need to present financials to international investors? We provide conversion services from BAS to IFRS with detailed reconciliation.
Why Businesses Trust AM Law for Financial Reporting
✅ Legal + Accounting Expertise Combined
We’re not just accountants—we’re also legal professionals. This means we understand every nuance of financial and regulatory compliance.
✅ Industry-Specific Knowledge
From logistics and manufacturing to tech startups and holding firms, our team has deep experience in applying GAAP across sectors.
✅ Transparent Process
We guide you through every step of the financial reporting process with clear timelines and deliverables.
✅ Ongoing Support
Need help with quarterly reports, audit coordination, or tax return alignment? We offer ongoing support well beyond year-end closing.
When Are GAAP Financial Statements Required?
GAAP-compliant reporting is essential in the following situations:
Internal management reporting
Annual report submission to the Lithuanian Register of Legal Entities
Loan applications with banks and financial institutions
Investment rounds or due diligence processes
Merger and acquisition negotiations
EU grant funding compliance
Partner With AM Law – Your Financial Compliance Experts
Preparing and submitting GAAP financial reports in Lithuania doesn’t have to be complex or stressful. At UAB “AM Law”, we ensure that your financials are prepared accurately, on time, and in full compliance with all legal and professional standards.
Whether you’re a small business filing your first annual report or a large firm preparing for an audit, we’re here to support every step of the way.
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