Transformation of accounting in Lithuania since 1990

Evaluation of accounting regulation evolution in selected countries

“…Such situation required new legislation in all spheres as well as accounting. Although, till 1992, accounting used to be performed as a central planned economy accounting system based on detailed rules and instructions (Lakis, Subačienė, 2014), several important legislation on regulation of accounting were issued (see Table 5). The Resolution of the Government of the Republic of Lithuania "Due to the Taxation Rates of Amortization Deductions of Fixed Assets" No.…”

“…564 (Lietuvos Respublikos Vyriausybės nutarimas "Dėl buhalterinės..., 2017) was issued on 17 December, 1991. According to this resolution, companies had to organize accounting process in the way to provide timely and accurate information for state statistics, tax-calculating agencies, owners, creditors, business partners and to ensure legal framework for economic and commercial transactions (Lakis, Subačienė, 2014). The resolution enforced 5 international accounting standards for preparation of financial statements: IAS 1 Presentation of Financial Statements; IAS 2 Inventories; IAS 3 Consolidated Financial Statements (which was superseded in 1989 by IAS 27 and IAS 28), IAS 5 Information to Be Disclosed in Financial Statements, IAS 7 Statement of Cash Flows.…”

“…It defined that accounting should be carried out in conformity with the provisions of International Accounting Standards and the European Union (formerly European Economic Community) Directives. This Law transferred accounting regulation from detail instructions to appliance of Generally Accepted Accounting Principles used in market economies, provided the procedure for the formalization and signing of documents confirming the execution of transactions, defined the composition and the procedure for the authorization of financial statements, the methods of assets valuation, stock-taking (Lakis, Subačienė, 2014). (Mackevičius, Zverovich, Kazlauskienė, 2011).…”

“…Before 2001 Lithuanian enterprises had used tax laws for carrying out accounting process. However, some larger enterprises applied international accounting standards (Lakis, Subačienė, 2014).…”

“…The International Journal ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES ISSN 2345-0282 (online) http://jssidoi.org/jesi/ 2018 Volume 6 Number 1 (September) http://doi.org/10.9770/jesi.2018.6.1(11) accounting of non-listed companies. Legal entities, whose securities are traded on a regulated market, have to apply international financial reporting standards (Lakis, Subačienė, 2014). The Law on Financial Statements (Lietuvos Respublikos Įmonių finansinės atskaitomybės…, 2017) defines the general accounting principles, the general requirements for the preparation of financial statements, financial period, confirmation and publishing of financial statements, the composition and description of financial statements, their types, the evaluation of assets and liabilities, responsibility for financial statements' preparation and keeping.…”