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The requirements of consolidate annual report in Lithuania

21 October 2015
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Consolidated reporting is regulated by the Law on Consolidated Financial Statements of Enterprises. An entity having one or several subsidiary undertakings must draw up consolidated accounts.

 

The accounts of a parent undertaking and all subsidiary undertakings thereof must be consolidated regardless of where the registered offices of the subsidiary undertakings are situated.

 

An entity which is a subsidiary undertaking of a subsidiary undertaking of a group of undertakings shall be considered a subsidiary undertaking of a parent undertaking of the group of undertakings, and accounts thereof must be consolidated.

 

A parent undertaking shall be exempted from the obligation to draw up consolidated accounts where the indicators of its group of undertakings do not exceed at least two of the following limits:

  1. net turnover (without deducting intra-group sales) – 8 700 000 EUR; 
  2. the total value of assets specified in the balance sheet (without deducting intra-group transactions) – 5 300 000 EUR;
  3. average number of pay-roll workers during the year – 75.

 

Other exemptions when a parent undertaking and a subsidiary undertaking do not have to draw up consolidated reporting are set in the Art. 5 and Art. 6 of the Law on Consolidated Financial Statements of Enterprises.

 

An entity drawing up a consolidated annual report may present its annual report and the consolidated annual report as a single report. In drawing up such a single report, it may be appropriate to give greater emphasis to those matters which are significant to a group of undertakings. The preparation of the annual report of a group of companies requires the application of the same accounting principles in all companies of the group in order to reflect their business transactions in the same manner.

 

consolidate report Lithuania; accounting Lithuania; auditing annual report Lithuania; tax authorities Lithuania; taxation in Lithuania; tax consultants Lithuania; English speaking attorney at law in LithuaniaStatutory audit of financial statements

 

In the event that consolidated reporting is required, the annual reports shall always be audited by a certified auditor (Art. 10 the Law on Consolidated Financial Statements of Enterprises).

 

A certified auditor shall submit a report on the audit results in writing. The auditor’s report shall specify in particular, the following:

  • whether the annual report and the management report of the company or a group of companies have been prepared according the law;
  • whether the annual report gives a true and fair view of the assets, liabilities and financial results of the respective company at the end of the reporting year, as well as of the profits and losses during the reporting year;
  • whether the legal representatives of the company have given all the required information and explanations to the auditor.

consolidate report Lithuania; accounting Lithuania; auditing annual report Lithuania; tax authorities Lithuania; taxation in Lithuania; tax consultants Lithuania; English speaking attorney at law in LithuaniaPublication of annual reports

 

The approved annual financial reports and the annual report together with an auditor’s report (in the cases when audit has been carried out or must be carried out according to the law) is published in the Legal Entities Register in the cases and in accordance with the procedure set forth by laws and other legal acts. The published annual financial reports and the annual report must be reproduced in the form and text on the basis of which an auditor has drawn up his report.

 

 

Jovita ValatkaitÄ—

English speaking attorney at law the Gencs Valters Law Firm in Vilnius, practising in fields of Corporate and Tax law in Lithuania, Latvia and Estonia.

 

T: +370 67 24 0090

F: +372 67 24 0091

www.attorneys-at-law.eu

www.lavvocato.eu

 

To find out more about tax requirements in Lithuania, please contact our English speaking attorneys at law and tax consultants at info@gencs.eu

For questions, please, contact Valters Gencs, attorney at law at info@gencs.eu


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The material contained here is not to be construed as legal advice or opinion.

© Gencs Valters Law Firm, 2016
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