Income Statement Lithuania
Income Statement Preparation in Lithuania – Clear Insight into Your Business Performance
Understanding how your business is performing financially is crucial. In Lithuania, the income statement—also referred to as the profit and loss statement—is one of the most important components of your company’s annual financial statements. It provides an in-depth view of your revenues, expenses, and net profit or loss over a specific accounting period.
At UAB “AM Law”, we assist companies of all sizes with professional income statement preparation in compliance with Lithuanian Business Accounting Standards (BAS) or International Financial Reporting Standards (IFRS). Whether you need it for annual reporting, management review, or investor relations, our experts ensure accurate and audit-ready documentation.
What Is an Income Statement?
An income statement (Lithuanian: Pelno (nuostolių) ataskaita) shows a company’s financial performance over a specific time—typically a fiscal year. It details:
- Revenue earned
- Operating and administrative costs
- Cost of goods sold
- Taxes, interest, and depreciation
- Final net profit or loss
It answers the critical question: Is the company making money?
Who Needs an Income Statement in Lithuania?
Under Lithuanian law, almost every registered business entity must prepare and submit an income statement as part of its annual financial statements, including:
- Private limited liability companies (UAB)
- Public companies (AB)
- Limited and general partnerships
- Foreign company branches
- NGOs (in certain cases)
- Cooperatives and associations
Even non-operating companies must file simplified financial reports, including a version of the income statement.
Key Components of the Lithuanian Income Statement
A well-prepared income statement typically includes the following sections:
1. Revenue (Sales or Income)
This includes all sales of goods or services, net of discounts and returns. It may also include other operating income such as rental revenue or royalties.
2. Cost of Sales (COGS)
The direct costs related to the production of goods or services sold—such as materials, direct labor, and manufacturing overheads.
3. Gross Profit
Calculated as Revenue minus COGS. It reflects the efficiency of core business operations.
4. Operating Expenses
These include administrative, selling, and general expenses such as salaries, rent, office expenses, marketing, and professional services.
5. Operating Profit (EBIT)
Earnings before interest and taxes—a key indicator of business profitability from operations.
6. Other Income and Expenses
Includes financial income, dividends, interest income, currency exchange differences, and any non-operating costs.
7. Net Profit Before Tax
Total earnings before taxation is applied.
8. Income Tax
Corporate income tax payable under Lithuanian tax law.
9. Net Profit or Loss
The final result after all deductions—representing the company’s bottom line.
Income Statement Under BAS and IFRS
In Lithuania, income statements can be prepared according to two different accounting frameworks:
Lithuanian Business Accounting Standards (BAS)
BAS is tailored for SMEs and local companies. It provides structured guidance on recognizing income and expenses.
International Financial Reporting Standards (IFRS)
Mandatory for listed companies and optional for larger entities, IFRS provides greater flexibility and is often preferred for foreign subsidiaries or multinational operations.
AM Law supports both BAS and IFRS preparation to suit your business and investor needs.
Our Income Statement Services
At UAB “AM Law”, we go beyond basic accounting. We offer comprehensive support for preparing professional, compliant, and insightful income statements:
✔ Full Financial Data Review
We analyze your ledgers and financial records to ensure all revenue and expense entries are accurate and correctly classified.
✔ Customized Reporting Format
We format your income statement to match regulatory requirements or internal stakeholder preferences, whether for BAS, IFRS, or management use.
✔ Supporting Notes and Disclosures
We prepare necessary explanations for unusual or significant transactions to add transparency and support compliance.
✔ Interim Profit and Loss Statements
Need quarterly or half-yearly statements for lenders or investors? We prepare detailed interim statements on request.
✔ Translation and Localization
We provide income statements in Lithuanian, English, or Russian, ideal for foreign shareholders and international reporting.
Why Your Income Statement Matters
A professionally prepared income statement helps:
- Evaluate financial performance and profitability
- Support strategic planning and budgeting
- Communicate results to shareholders and investors
- Comply with statutory filing and tax obligations
- Facilitate loan applications and financial negotiations
- Prepare for audits or financial reviews
It’s also a required document for filing your annual financial report with the Centre of Registers.
Common Errors in Income Statement Preparation
Companies often run into the following issues:
- Misclassification of income or expenses
- Omissions in accruals or depreciation
- Improper treatment of deferred taxes or revaluations
- Failure to include non-operating gains or losses
- Errors in retained earnings from prior years
Our specialists at AM Law ensure all figures are reviewed and adjusted, preventing costly mistakes and audit complications.
Why Choose AM Law?
Industry Experience
We’ve worked with companies in manufacturing, logistics, IT, retail, finance, healthcare, and more—each with unique reporting needs.
Legal and Accounting Expertise
Our team includes accountants, tax advisors, and legal consultants, ensuring that your income statement aligns with broader financial and legal compliance.
Reliable and Timely Reporting
We manage all filing deadlines and provide fast turnaround without compromising accuracy.
Transparent Pricing
No hidden fees. Our service packages are clear, cost-effective, and customizable based on your company size and complexity.
Let AM Law Prepare Your Income Statement with Precision
At UAB “AM Law”, we understand that your income statement is not just a compliance document—it’s a strategic financial tool. Whether you’re preparing for annual filing, funding rounds, or internal management review, we ensure your income statement is accurate, compliant, and insightful.
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