Profit and Loss Account Lithuania
Profit and Loss Account in Lithuania – Know Your Business Inside Out
Every successful business relies on accurate and timely financial information to guide strategy and operations. At the core of financial reporting lies the Profit and Loss Account (P&L)—a key document that reveals whether your company is operating profitably.
In Lithuania, preparation of the Profit and Loss Account is not only a vital part of running a business but also a legal requirement for most registered companies. At UAB “AM Law”, we specialize in the professional preparation, review, and submission of profit and loss accounts in accordance with Lithuanian Business Accounting Standards (BAS) or International Financial Reporting Standards (IFRS).
What Is a Profit and Loss Account?
A Profit and Loss Account, also known as an Income Statement, is a financial report that summarizes a company’s revenues, costs, and expenses over a defined accounting period—monthly, quarterly, or annually.
It helps answer essential business questions like:
- Is the company making a profit or incurring a loss?
- Are operational costs under control?
- How efficient is the business in generating revenue?
In Lithuania, this statement is a critical component of your annual financial reporting package and must be filed with the Register of Legal Entities.
Why Is the Profit and Loss Account Important?
The P&L account provides valuable insights into the financial performance of your business. It is used by:
- Business owners and managers to make strategic decisions
- Investors and partners to assess profitability
- Financial institutions when reviewing loan applications
- Auditors during compliance reviews
- Government agencies for tax and regulatory purposes
In essence, it offers a snapshot of your profitability during a specific period and plays a vital role in your overall financial reporting obligations.
Who Must Submit a P&L Account in Lithuania?
The requirement to prepare and submit a profit and loss statement applies to:
- Private limited liability companies (UAB)
- Public companies (AB)
- Partnerships and cooperatives
- Foreign company branches
- Associations, non-profits, and foundations (when applicable)
Even dormant or non-trading companies must submit simplified reports, which may still include a version of the P&L.
Core Elements of the Lithuanian P&L Statement
A well-prepared P&L account generally includes:
1. Revenue
This is the total income generated from the sale of goods or services, excluding VAT and any returns or discounts.
2. Cost of Goods Sold (COGS)
All direct expenses related to the production or acquisition of goods and services sold during the period.
3. Gross Profit
The difference between Revenue and COGS. It reflects your core business profitability before operating costs.
4. Operating Expenses
These include costs such as salaries, rent, marketing, professional fees, and utilities.
5. Operating Profit (EBIT)
Earnings before interest and taxes—a primary indicator of your operational performance.
6. Non-Operating Income or Expenses
Items like interest income, exchange rate differences, or one-time gains/losses.
7. Net Profit Before Tax
Profit before corporate income tax is applied.
8. Corporate Tax
Tax payable under Lithuanian law, usually calculated at a 15% standard rate, with exceptions for small entities or special conditions.
9. Net Profit or Loss
The final amount—whether the company made a profit or experienced a loss during the period.
Our Profit and Loss Account Services
At AM Law, we provide full-service P&L account support, ensuring accuracy, timeliness, and compliance with all Lithuanian and EU regulations.
✔ Detailed Financial Review
We evaluate your accounts and transactions to verify all income and expense entries before drafting the report.
✔ Preparation According to BAS or IFRS
We prepare the P&L based on either Lithuanian Business Accounting Standards or IFRS, depending on your company’s reporting framework.
✔ Interim and Annual P&L Reports
Need monthly or quarterly reports for management or banks? We provide interim statements, not just annual filings.
✔ Translation Services
We offer the report in Lithuanian, English, or Russian—ideal for international companies, investors, and cross-border audits.
✔ Audit-Ready Statements
We prepare documentation and structure reports to be compliant and ready for third-party audit or internal financial review.
BAS vs. IFRS Reporting Standards
Lithuanian companies can prepare P&L statements under:
Lithuanian Business Accounting Standards (BAS)
Designed for SMEs, BAS offers a localized, simpler format aligned with local tax and regulatory frameworks.
International Financial Reporting Standards (IFRS)
Mandatory for listed companies and often chosen by large or foreign-owned businesses for global consistency.
AM Law can advise you on which framework suits your needs best—and ensure correct application.
Common Mistakes in P&L Preparation
Without professional guidance, businesses may encounter:
- Misclassification of revenues or expenses
- Ignoring accruals or deferred income
- Mistakes in foreign currency transactions
- Inaccurate allocation of operating vs. non-operating items
- Errors in tax or depreciation calculations
Our experts prevent these issues, ensuring that your profit and loss account is accurate, compliant, and audit-friendly.
Why Work with AM Law?
✅ Expertise Across Industries
From retail to technology, logistics to manufacturing—our accountants are experienced across diverse business models.
✅ Legal and Financial Synergy
Our team includes lawyers, accountants, and tax professionals who collaborate to ensure comprehensive financial compliance.
✅ Personalized Service
We adapt our approach based on your company’s structure, size, and industry.
✅ Transparent Process
We provide clear timelines, document checklists, and fixed-fee pricing for your convenience.
Take Control of Your Financial Reporting
A professionally prepared Profit and Loss Account is more than a regulatory requirement—it’s a vital tool for growth, performance evaluation, and financial control. Let UAB “AM Law” handle the complexity while you focus on running your business.
Citizenship of Lithuania
Citizenship
- Acquisition of citizenship of the Republic of Lithuania by virtue of birth.
- Restoration of citizenship of the Republic of Lithuania.
- Oath of Allegiance to the Republic of Lithuania.
- Naturalisation.
- By way of exception.
- Simplified procedure.
Right to reinstate citizenship of the Republic of Lithuania to persons who had citizenship of the Republic of Lithuania and until 15 June 1940 and their descendants who have not acquired citizenship of the Republic of Lithuania before 2011-04-01.
We could help you to get citizenship in Lithaunia.
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