International Accounting Comparison
The following International Accounting Standards are included in this comparison:
IAS 1 Presentation of Financial Statements IAS 2 Inventories IAS 7 Cash Flow Statements IAS 8 Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies IAS 10 Events after the Balance Sheet Date IAS 11 Construction Contracts IAS 12 Income Taxes IAS 14 Segment Reporting IAS 16 Property, Plant and Equipment IAS 17 Accounting for Leases IAS 18 Revenue IAS 19 Employee Benefits IAS 20 Accounting for Government Grants and Disclosure of Government Assistance IAS 21 The Effects of Changes in Foreign Exchange Rates IAS 22 Business Combinations IAS 23 Borrowing Costs IAS 24 Related Party Disclosures IAS 25 Accounting for Investments IAS 27 Consolidated Financial Statements and Accounting for Investments in Subsidiaries IAS 28 Accounting for Investments in Associates IAS 29 Financial Reporting in Hyperinflationary Economies IAS 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions IAS 31 Financial Reporting of Interests in Joint Ventures IAS 32 Financial Instruments: Disclosure and Presentation IAS 33 Earnings per Share IAS 34 Interim Financial Reporting IAS 35 Discontinuing Operations IAS 36 Impairment of Assets IAS 37 Provisions, Contingent Liabilities and Contingent Assets IAS 38 Intangible Assets IAS 39 Financial Instruments – Recognition and Measurement Comparison of International Accounting Standards and Lithuanian Accounting Policies
International Accounting Comparison
Comparison of International Accounting Standards with generally accepted accounting practice in Albania, Bulgaria, Byelorussia, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Republic of Macedonia, Romania, Slovakia and Slovenia. The comparison was performed based upon the accounting legislation effective in the above 14 countries as of December 31, 2000. In certain countries, changes to the accounting legislation have occurred as of January 1, 2001. This comparison does not include differences between IAS and generally accepted accounting practice in these countries, subsequent to December 31, 2000. Abbreviations AL Accounting Law B/S Balance Sheet CF Cash Flow ČNB Czech National Bank CZK Czech Koruna (currency) EAL Estonian Accounting Law EASB Estonian Accounting Standards Board EU European Union FIFO First-in-First-Out (inventory valuation) F/S Financial Statements GAAP Generally Accepted Accounting Practice HAS Hungarian Accounting Standard HNB Hungarian National Bank HUF Hungarian Forint (currency) IAS International Accounting Standard LIFO Last-in-First-out (inventory valuation) LVL Latvian Lats (currency) NAS National Accounting Standard P&L Profit and Loss RAS Romanian Accounting Standard RAL Romanian Accounting Law R&D Research and Development SAL Slovak Accounting Law SAS Slovenian Accounting Standard SIC Standing Committee on Interpretations SKK Slovak Koruna (currency) VAT Value-Added-Tax JV Joint Venture EPS Earnings per Share
2 Comparison of International Accounting Standards and Lithuanian Accounting Policies
1. Presentation of Financial Statements Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 1) Republic Macedonia
Componen Complete set of financial Complete set of Complete set of Complete set of IAS 1 applies to Comparable to Comparable to Complete set of Financial Complete set of Complete set of Only balance Comparable to Complete set of (SAS 24, 25, 26) ts and statements includes: financial financial financial all companies IAS, except cash IAS, except cash financial statement should financial financial sheet and income IAS, except cash financial Comparable to format of statements statements statements incorporated flow statement flow statement statements include statements statements statement flow statement statements IAS, except that: • balance sheet; financial includes: includes: includes: under the and the statement and the statement includes: includes: includes: required. and the statement includes: • statement • Commercial of changes in of changes in balance sheet of changes in income statement; • balance sheet; • • balance sheet; s • balance sheet; • balance sheet; Code. equity are treated equity are treated Annual report is Comparable to equity that is not a • No requirement • income • • • statement of non-owner • income • • statement of as parts of the as parts of the composed of • balance sheet; IAS, but a required part of balance sheet; for statement of income statement income movements in equity; statement; profit and loss; notes to the notes to the the balance standard format the financial non-owner statement; statement; • income • income • appendix. • statement of Financial Financial sheet, the profit prescribed by the statements. movements in • statement of statement; statement; • cash flow statement; and • statement of changes in Statements. Statements. and loss • cash flow Accounting Law equity; account, the changes in the A determined non-owner equity; statement; • (further “AL”) and A particular format • • notes to the financial supplementary capital notes to the notes to the • Particular format for movements in • notes to the Prescribed format Comparable to financial the Company of financial financial statements. notes, and the • explanation to formats for presentation is equity; financial is required to be IAS, but a core • cash flow statements Law. statements issued statements used. format prescribed business report. the financial by the Ministry of presentation No particular format or mandated. statements; statement (called • cash flow by the EAL and statements. The formats used Finance is mandated. order for presentation • accounting • ‘additional The Movement in statement; and A management Commercial Simplified • notes to the by banks and mandatory. The mandated. policies. annual report is Particular format information’). Equity and Cash Annual business report is not a Code. The financial financial formats used by • notes to the composed of for presentation is Flow Statement report presents a Encouraged to present a All statements required formats used by statements institutions and credit institutions financial the balance mandated for Companies, which are regarded as review by review by management of have a standard component of the credit institutions insurance and insurance statements. sheet, the profit banks and other are obliged to part of the notes management of financial and operating form, including annual accounts. and insurance Besides the companies are companies are and loss companies. have an annual (not required in financial and activities, outside the analytical report of companies are financial prescribed in prescribed in Notes to the account, and statutory audit, the case of the operating financial statements. the management prescribed in statement a report separate acts. separate acts. financial the should also consolidated activities; for on financial and separate acts. must be prepared statements are supplementary prepare cash flow financial further operating where the A management presented notes. statement. statements.) specification of activities. A management management of report is a primarily in tabular Publicly traded inclusion in an report is a • Consolidated the company companies should required Particular format format specified required reports on current component of the annual business by the National annual report is also prepare for presentation of report see the component of the composed of period statement of annual accounts. balance sheet and Institute of annual accounts. developments. Law on Statistics. In the changes in equity. income statement Commercial consolidated These Directors’ report mandated. addition requirements Companies. disclosures are balance sheet, should be the doesn’t refer to: attached to the Rules for the required in a textual format consolidated financial notes to the specified by the profit and loss • private, rustic statements. financial account, and statements relevant NAS. and pescatory Detailed formats the farms whose mandated. consolidated of balance sheet, Banks, insurance revenues for the supplementary income statement companies, year do not notes and and cash flow investment funds, exceed 45 000 statement are non-for-profit consolidated LVL business report. described by organizations and relevant • institutions that budget funded regulations. entities also issue Cash flow are financed the above set of statement should from state financial be presented as budget or statements but part of the municipality information is in supplementary compliance with notes, but it is not relevant NAS compulsory for the applicable for their simplified annual specific activities. report.
The balance sheet and the profit and loss account has a prescribed form based on the law. (See appendix 1 and 2)
Complianc If financial statements The annual The annual All statements Comparable to The annual The annual This Act contains Comparable to Not defined. No requirement The annual The annual The financial (Preface to SAS, e with comply with IAS, this fact accounts shall accounts shall should be IAS. accounts shall accounts shall accounting rules IAS for statement of accounts shall accounts shall statements should 6. Fundamental relevant should be stated. Such a comply with comply with prepared in comply with comply with which are in compliance – comply with comply with comply with Accounting accountin statement should not be Albanian Bulgarian GAAP compliance with Czech accounting Estonian GAAP accordance with other than in audit Macedonian Romanian GAAP Slovak Accounting Assumptions) g made unless there is full accounting law and this fact shall Belarussian Rules law and rules. and this fact shall International report. accounting but this fact is not Law (SAL) and Comparable to standards compliance. and rules. They be stated. of Accounting. be stated. Accounting Companies are regulations and stated. regulations. This IAS. should present a These rules have Standards and required to comply principles and this fact should be In the rare circumstances NAS can not be true and fair view substantial Where the annual based upon with the fact shall be Non-compliance stated in the first where non-compliance with applied before its of the entity’s distinction from accounts do not reliable Accounting Act stated. with the general part of the notes. IAS is necessary in order to effective date. financial situation. the International present true and information and all applicable accounting achieve a fair presentation, Accounting fair view of the providing a true regulations – no principles has to Non compliance is disclose: Standards. accounting entity’s overall view in provision for be disclosed. not allowed. • that management has financial situation, respect: override of laws concluded that the the “true and fair” and regulations in financial statements override in EAL § • of the order to achieve a achieve a fair 18.7 may be income ‘fair presentation’. presentation; applied. Any such producing departure must be capability
3 Comparison of International Accounting Standards and Lithuanian Accounting Policies
Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 1) Republic Macedonia
disclosed in the • the • that the financial notes with the developme statements comply with reason for the nt of the IAS except for the departure and its assets, departure necessary to effect on the • the financial achieve a fair assets, liabilities, situation presentation; owners` equity and the and profit/ loss of future plans • details of the departure the accounting of such and the reasons for it; entity. entities and falling • the financial impact of the under the departure. effect of this Act. When an IAS is applied before its effective date, that fact should be disclosed.
Underlying Going concern, consistency Major Going concern, The main Comparable to Comparable to Major The ‘basic Comparable to Going concern, Going concern, Major Major Comparable to (Preface to SAS, assumptio and accruals are presumed considerations consistency and accounting and IAS. IAS. Usually form considerations accounting IAS. consistency and matching, considerations considerations IAS. 6. Fundamental ns to be followed - otherwise are: accrual basis are reporting over substance is are: principles’ shall be accruals are prudence and are: are: Accounting disclosure required. defined in the principles are as applied (but not enforced when presumed to be consistency Going concern, Assumptions)
Accountancy Act follows: defined as a preparing the followed. defined as • going consistency and Comparable to Any significant uncertainties • going concern, • • as a part of the 12 general principle). going concern, annual report and fundamental concern, Prudence; accruals are IAS. about the entity’s ability to • • completeness; Any significant comparability, basic principles Less emphasis on in the course of accounting Although presumed to be continue as a going • • uncertainties consistency, underlying the going concern. comparability, bookkeeping. concepts. • prudence is followed – concern should be • • accuracy; about the entity’s comparabilit carry-forward, accounting in Any significant The basic recognized as a otherwise disclosed. • consistency, ability to continue y, • accruals and Bulgaria. • uncertainties accounting In general principle in the disclosure accrual as a going prudence. about the entity’s • principles may be emphasis on • RAS, the required. Any significant concept, which materiality, concern should be consistency, ability to continue departed from prudence is higher detailed rules uncertainties implies disclosed. as a going • disclosure, only in the manner than in IAS. • do not always Any significant about the entity’s recognition of materiality, concern should be regulated in this reflect it. uncertainties ability to continue revenues and disclosed. • accruals and Act. about the entity’s as a going costs as they • disclosure, • prudence. Basic accounting Consistency ability to continue concern is not are earned or Major principles are as a going required but incurred. The • accruals and • Going concern considerations going concern, concern should be usually disclosed. revenues and prudence. costs should be are: completeness, • Accruals disclosed. recorded in the authenticity, financial • concept of lucidity, The opening statements of historical consistency, balance sheet the periods to costs continuity, balances can not which they commensurability, be changed. relate. Accrual • accruals prudence, gross concept is concept settlement, item- Any departure optional. A by-item from the company may • concept of evaluation, accounting choose the prudence accruals, principles has to alternative cash substance over be disclosed. basis of • prohibition form, essentiality accounting for of and cost-benefit revenues. compensatio comparison. n Going Concern, being one of the • continuity of IAS fundamental accounts accounting assumptions, is • recognition neither applied at the nor considered in moment of the Belarussian realization law.
• consistency of methods used
Basis for In the first instance, to The enterprise is Accounting An enterprise is Comparable to Accounting Accounting Within the Comparable to Not required to Compliance with The annual Accounting Accounting (Preface to SAS, selection comply with IAS. free to choose the policies are obliged to adhere IAS. policies must policies must framework of the IAS comply with IAS. law and accounts shall policies must policies must 6. Fundamental of way of keeping developed in to strict local comply with comply with accounting policy regulations. comply with comply with comply with SAL Accounting Where there is no specific accountin the accounting, compliance with: accounting Czech accounting Estonian GAAP, the regulations Annual financial Selection of Macedonian Romanian GAAP. and regulations. Assumptions) guidance, policies should g policies but in all the reporting rules, law and which is in line and procedure of statements alternative accounting be selected in order to • Bulgarian Comparable to cases accounting although having regulations. Under with IAS except stocktaking assets (annual accounts) accounting regulations and When there is no ensure that information is: GAAP and IAS, also: policies must right to chose Czech accounting where noted and liabilities; the of legal persons policies stipulated principles and this specific guidance comply with from alternative • relevant to users’ needs; • law is usually below. regulations of should be by the Accounting fact shall be on the approach, • the following Albanian Requirements accounting and preferred over evaluating assets prepared in Act should be stated. in practice considerations Accounting Law. of the IAS, policies in some where there is substance. and liabilities; the accordance with justified by the comparable to should govern • areas, such as: internal major best presentation IAS. reliable in that it is a no specific the selection faithful representation, guidance of the What to do when regulations of requirements of the company’s and application th i llti hi h d t lt f
4 Comparison of International Accounting Standards and Lithuanian Accounting Policies
Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 1) Republic Macedonia
reflects substance over guidance of the there is no calculating which do not results of by management form, neutral, prudent NAS. • accounting for specific guidance production costs; generally operations and of the and complete in all revenues and is not specified the cash handling contradict IAS. financial position. appropriate material respects. costs (accrual but in practice regulations shall While making accounting basis vs. cash comparable to be identified. selection of policies and the basis); IAS. alternative preparation of • The determinant accounting financial depreciation elements of the policies, prudence statements: accounting accounting policy, concept should be prudence, (straight line any change followed. substance over method vs. thereof, and the form, and accelerated consequence of materiality. depreciation); any change on the • inventory cost profit or loss shall formulae (LIFO, be detailed in the weighted supplementary average and notes. others);
• cost of sales and overheads accounting;
• some other methods and principles of accounting.
Disclosure Disclose the measurement The appendix The Notes shall Must be Comparable to The notes shall The notes shall Based on the Comparable to Accounting Disclose all The notes shall There is no The notes shall (Preface to SAS, of basis used in preparing the shall disclose the disclose the presented as a IAS. disclose the disclose the basic accounting IAS methods significant disclose the equivalent disclose the 3. The Systematic accountin financial statements and following: recognition and separate accounting accounting principles and employed in the accounting accounting provision under accounting of SAS) g policies each specific accounting measurement component of the principles and principles and evaluation rules preparation of the policies with principles and the RAS and the principles and Comparable to policy that is necessary for basis as well as financial valuation valuation defined in this Act, annual financial emphasis on a valuation required valuation • accounting IAS. (In the areas an understanding of the each specific statements or in assumptions used assumptions used an accounting statements should selection from assumptions used disclosure (Annex assumptions used principles and where there are financial statements. accounting policy the analytical in preparing in preparing policy best suiting be disclosed. existing in preparing 7 to the financial in preparing guidelines no SAS, applied for the management financial financial the characteristics acceptable financial statements and financial Appropriate to disclose applied in assistance should preparation of the report, which is statements and statements (EAL and alternatives. statements. Administrators statements and policy for each issue not preparing the be found in the financial submitted, to the conform to the §18.6, Appendix circumstances of Report) is not conform to the covered by existing IAS. financial Include as a part relevant IAS.) statements. tax inspectorate. requirements set 3) and conform to the entrepreneur considered requirements set statements; of the additional out in Accounting the requirements shall be formed adequate (the out in Accounting May be presented as a • All significant information to the valuation and Act and set out in EASB’s and put in writing, notes should Act and separate component of the changes in financial measurement accounting guidelines. which shall disclose the accounting financial statements or in adopted statements. assumptions regulations. specify the valuation regulations. the notes to the financial accounting used. methods and assumptions used statements (recommended policies must be In practice Presented as a means of in the preparation as the second note, reported in an disclosures are component in the implementing this of the financial immediately following the explanatory note less notes to the Act. statements and statement of compliance to annual financial comprehensive. financial also the with IAS). statements. statements Within the departures from (recommended as framework of the the accounting the second part, accounting policy, principles and the immediately amongst other reasons therefor). following the first things, those Under the RAS part - general rules, (Annex 7 to the information). prescriptions and financial methods statements and characteristic of Administrators the entrepreneur Report) the shall be specified disclosure can be which establish split between two what the places and the entrepreneur disclosure considers required is not significant from an considered accounting point adequate. of view.
Materiality Each material item should Not specified. Financial No such principle Comparable to Headings and Headings and Not specified Comparable to Standard form of Not specified. Headings and Headings and Prescribed format (Preface to SAS, and be presented separately in However statements should exists. IAS. specific items specific items IAS financial specific items specific items for presentation. 3. The Systematic aggregatio the financial statements. headings and be prepared must be must be statement items is must be must be of SAS) n specific items according to the presented in the presented in the defined. presented in the presented in the • There is a Immaterial amounts should must be concept of order prescribed order prescribed order prescribed order prescribed general rule: Comparable to be aggregated with presented in the materiality as in the balance in the balance in the balance in the balance The notes to the IAS. (In the areas amounts of a similar nature order prescribed specified by the sheet and income sheet and income sheet and income sheet and income financial where there are or function and need not be in the balance Accounting Law. statement formats statement formats statement formats statement formats statements no SAS, presented separately. sheet and income prescribed by the prescribed by law. prescribed by AL. prescribed by law. should contain assistance should statement formats law. all facts be found in the prescribed by law. Sub-headings Sub-headings important to an relevant IAS.) may be added in may be added in understanding Sub-headings order to present order to present of the current may be added in material items material items period’s order to present separately separately financial
5 Comparison of International Accounting Standards and Lithuanian Accounting Policies
Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 1) Republic Macedonia
material items separately. separately. financial separately. statements.
Offsetting Assets and liabilities should The offsetting of Assets and Assets and Comparable to Offset of assets The offsetting of Revenues and Comparable to Comparable to Assets and The offsetting of The offsetting of Offset of assets (Preface to the not be offset except where assets and liabilities, income liabilities should IAS. and liabilities assets and costs IAS IAS. liabilities, items of assets and assets and and liabilities is SAS, 3. The offsetting is required or liabilities or and expenses not be offset permitted only liabilities or (expenditures), income and liabilities or liabilities or generally Systematic of permitted by another income and should not be except where when there is a income and and receivables expenses, income and income and permitted only SAS) International Accounting expenses is not offset except offsetting is legal right of set- expenses is not and liabilities may extraordinary expenses, is not expenses is not when there is a Standard. permitted. where offsetting is required or off. The offsetting permitted, with the not be offset gains and losses permitted. permitted, with the legal right of set Comparable to permitted by permitted by of income and exception of against one should not be exception of off – specifically IAS. Items of income and The accounting another NAS, or is another expenses is not special cases another (principle offset except special cases only when short- (In the areas expense should be offset standards and necessary for Belarussian permitted. dealt with in of gross where offsetting is dealt with in term receivables where there are when, and only when: guidelines do not better Accounting Rule. accounting settlement). required or accounting and liabilities are no SAS, deal with understanding of standards and permitted by law. standards and due from /due to assistance should • an IAS requires or exceptions or Items of income the nature of the guidelines. guidelines. the same be found in the permits it; or special cases in and expense activity of the debtor/creditor in relevant IAS.) this regard. should be offset • entity. the same currency gains, losses and related only when from or to the expenses arise from the Belarussian same person in same or similar Accounting Rules the same transactions and events require or permit currency, that are not material. it.
Offsetting of income and expenses is not permitted.
Comparati Unless an IAS permits or The balance sheet The balance Unless the Comparable to Comparative Comparative Comparable to Current Comparative Comparative Comparative Comparable to (Preface to the ve requires otherwise, and the income sheet, the income Belarussian IAS. information should information The balance IAS accounting year information should information information IAS, except that SAS, 3. The informatio comparative information statement should statement and the Accounting Rules be disclosed in required sheet, the income and at least one be disclosed in required required. reclassification of systematic of n should be disclosed in contain cash-flow permits or respect of the statement and the previous year data respect of the comparative SAS) respect of the previous information in statement should requires previous period Comparable to cash-flow have to be previous period Comparative If restatements amounts is not period for all numerical respect of the contain otherwise, for all numerical IAS comparative statement should presented in the for all numerical information shall are made, allowed. Comparable to information in the financial previous period. comparative comparative information in the information shall contain annual financial information in the be restated. disclosure is IAS. (In the areas statements. information in information should financial be restated. comparative statements. If it is financial Disclosure is required, of the where there are respect of the be disclosed in statements. Disclosure is information in impossible to statements. required of the nature of the no SAS, Comparative information previous period. respect of the required, of the respect of the compare data of nature of the restatement. assistance should should be included in Comparative previous period nature of the previous period. current and Comparative restatement. be found in the narrative and descriptive When the information should for all numerical restatement. When the previous periods information should When it is relevant IAS.) information when it is presentation or be included in information in the presentation or because of be included in impracticable to relevant to an classification of narrative and financial classification of changes in narrative and state the understanding of the items in the descriptive statements, items in the accounting descriptive comparatives the current period’s financial financial information when except cash flows financial methodology, information when reasons have to statements. statements is it is relevant to an and statement of statements is information on it is relevant to an be disclosed. amended, equity. understanding of amended, When the presentation or recalculations has understanding of comparative the current comparative classification of items in the to be reflected in the current amounts should period’s financial amounts should financial statements is the Notes about period’s financial be reclassified to statements. be reclassified to amended, comparative the annual statements. meet the meet the amounts should be No reclassification financial requirements of requirements of reclassified, unless it is of comparative statements. When the the new reporting the new reporting impracticable to do so. The amounts is Together with the presentation or format. format. nature, amount of, and allowed. recalculated data classification of reason for any used for items in the reclassification should be comparison, there financial disclosed. must be statements is presented the amended, When it is impracticable to data calculated comparative reclassify comparative assuming no amounts are not amounts, disclose the changes in reclassified. In reason for not reclassifying accounting such a case and the nature of the methodology information changes that would have during the allowing been made if amounts were accounting period. comparison of reclassified. current period’s financial statements with not reclassified prior year financial statements should be included in the notes to the accounts.
Classificat Enterprise can choose A distinction A distinction An enterprise Comparable to The prescribed The current/non- The division of the Comparable to Separate No specific The current/non- The current/non- Enterprises (SAS 24, 9) ion as to whether or not to present between current between current must present IAS format regulates current distinction balance sheet, as IAS. classifications for requirement – but current distinction current distinction should present Current and non- current/no current and non-current and non-current and non-current current and non- the classification is mandatory. well as further current and non- financial is mandatory. is made in the current and non- current assets and n-current assets and current and assets and assets and current assets and of assets. The rules regarding current assets and statements prescribed format current assets and current and non- non-current liabilities as liabilities should liabilities should current and non- current/non- Assets and the contents of the liabilities are formats described Assets and of balance sheet. current and non- current liabilities separate classifications. be made on the be made on the current liabilities current distinction liabilities are individual items is required. in the Accounting liabilities are current liabilities are required to be ff ff
6 Comparison of International Accounting Standards and Lithuanian Accounting Policies
Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 1) Republic Macedonia
face of the face of the as separate is mandatory. presented in order contained in Act specify presented in order Assets and as separate items classified and Where this distinction is not balance sheet, balance sheet, classifications. of their liquidity. Schedule No. 1. separate heads of their liquidity. liabilities are in the prescribed disclosed made assets and liabilities based on 12 based on 12 Assets and for fixed assets presented in order format of financial separately. should be presented months after the months after the The regulatory liabilities are The notes to Assets shall be and current The notes to of their liquidity. statements broadly in order of their balance sheet balance sheet bodies in each presented in order financial divided into assets. financial (except long-term Short –term liquidity. date for recovery date for recovery industry of their liquidity. statements shall invested assets statements shall The notes to receivables are liabilities are those or settlement. or settlement. established official disclose and current assets disclose financial presented under which are going to For each asset and liability The notes to charts of information about on the basis of information about statements shall current assets) be settled within item that combines financial Assets and accounts, which the recovery or their purpose and the recovery or disclose the split one year. amounts expected to be statements shall liabilities are prescribe strict settlement of utilization. settlement of of amounts to be Assets and recovered or settled before disclose presented in order separate monetary non- In the balance monetary non- recovered or liabilities are and after 12 months from information about of their liquidity. classification of current assets and sheet, equity, current assets and settled between generally the balance sheet date, the the recovery or current and non- liabilities. provisions, liabilities. current (less than presented in amount expected to be settlement of current assets and liabilities, and one year) and descending order recovered or settled after monetary non- liabilities. accrued expenses non-current (more of their liquidity 12 months should be current assets and and deferred than one year). (from fixed assets disclosed. Exception: A liabilities. income shall be to cash) peculiarity of entered among presentation of liabilities. the financial reports by Byelorussian corporate entities is non-separation of current and non-current accounts receivable and payable.
Current A current asset is an asset A current asset is Current assets are A current asset is Comparable to Comparable to Comparable to A current asset is Comparable to Comparable to Not specified - but Comparable to Not specified, but Comparable to (SAS 24, 5, 6) assets which: an asset, which is listed in the an asset which: IAS. IAS. IAS. an asset, which is IAS IAS. financial IAS. in practice is IAS. Comparable to expected to be Accounting Law expected to be statements comparable to IAS. • is expected to be • is expected to realized within 12 and comprise of: realized within 12 formats described IAS. realized, sold or be realized, months of the months of the in the Accounting consumed in the normal • inventory- sold or balance sheet balance sheet Act include course of the enterprise’s materials, consumed in date. date. inventories, operating cycle; finished goods, the normal therein. receivables (other stock, work in course of the than long-term), • is held primarily for progress etc.; enterprise’s short term trading purposes or for operating cycle; the short-term and is • short-term investments and expected to be realized receivables- • is held primarily cash under within 12 months of the expected to be for trading current assets balance sheet date; or recovered purposes or for heading. within 12 the short-term • is cash or a cash months after the and is expected equivalent asset, which is balance sheet to be realized not restricted in its use. date; within 12 months from the All other assets to be • short-term balance sheet classified as non-current. investments- date; or held primarily
for trading • is cash or a purposes or cash equivalent expected to be asset, which is realized within not restricted in 12 months after its use. the balance sheet date; and All other assets should be • cash in hand classified as non- and at bank current. accounts.
Current A liability is classified as A liability is Current liabilities A liability is Comparable to A liability is Comparable to A liability is Comparable to Comparable to Not specified – in Comparable to Not specified, but Comparable to (SAS 24, 9, 11) liability current when it: classified as include: classified as IAS. classified as IAS. classified as IAS. IAS. practice failing IAS. in practice is IAS. Short-term current when it is current when it: current when it: current when it is due before one comparable to liabilities are • is expected to be settled • trade creditors due to be settled due to be settled year. IAS. liabilities to be in the normal course of • is expected to • is due to be within 12 months within 12 months settled within one the enterprise’s operating • short-term loans be settled in the settled within 12 of the balance of the balance Publicly traded year. cycle; or normal course months of the sheet date. • sheet date companies should advances from of the balance sheet show current Long-term • is due to be settled within customers enterprise’s date ; or portion of long- liabilities are 12 months of the balance operating cycle; • liabilities due to term liabilities liabilities to be sheet date. or • represent the state. current part of separately under settled within a Long-term liabilities should • ‘current liabilities’ period exceeding is due to be long term loan continue to be classified as settled within 12 (i.e. part of loan, heading. one year.
non-current, even when months of the which will be they are due to be settled date of the repaid within 12 within 12 months of the liability months).
7 Comparison of International Accounting Standards and Lithuanian Accounting Policies
Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 1) Republic Macedonia
balance sheet date, if: recognition.
• the original term was for Long-term a period of more than liabilities should twelve months; continue to be classified as non- • the enterprise intends to current, even refinance the obligation when they are due on a long-term basis; and to be settled within 12 months • that intention is of the balance supported by an sheet date, if: agreement to refinance, or to reschedule • the original term payments, which is was for a period completed before the of more than financial statements are twelve months; approved. The above Any amount excluded from statements do not current liabilities on this relate to trade basis should be disclosed, payables that are together with the classified as justification. current liabilities.
General Disclose prominently: Disclose Disclose Disclose Comparable to Comparable to Comparable to Disclose Comparable to Comparable to Generally Comparable to Comparable to Disclose: (No SAS covers disclosure prominently: prominently: prominently: IAS. IAS. IAS, except it is prominently: IAS. IAS except that: comparable to IAS. IAS this area directly) • name of enterprise or s presented in IAS. Best current other identification; • name, legal • name, legal • name of In addition the • introduction to • the financial No consolidation name of practice: form, country of form, country of enterprise or following • annual accounts name of statements Require accounts are enterprise or • whether the financial incorporation incorporation other information should or in management enterprise or can not be disclosure of all prepared under other Disclosures: statements cover the and address of and address of identification; be disclosed: report. other presented significant RAS. identification; individual enterprise or a the enterprise; the enterprise; • • • identification; for more information, which name of group of enterprises; the balance the date of • whether the • • than one is relevant to the The nature and enterprise or the balance the balance sheet date or establishment • whether the financial • the balance sheet date or company, understanding of principal activities other sheet date and sheet date and the period of company; financial statements the period covered by the • financial financial are presented in identification the period the period covered by the statements cover the financial statements; • names of statements statements. management covered by the covered by the financial cover the individual • the domicile shareholders, can only be report financial financial statements; individual enterprise or a and legal form • the reporting currency; which own 20% presented statements; statements; enterprise or a group of of the and • the reporting or more of in national group of enterprises; enterprise, • the date of • the date of currency; and registered currency; • the level of precision enterprises; country of signing the signing of the capital, the • amounts • the balance used in the presentation • the level of incorporation financial financial amount of their • the balance presented sheet date or of the figures in the precision used and address; statements; statements. ownership in sheet date or in the the period financial statements. in the percent, the period financial covered by the • a description of presentation of In addition the notes should description of covered by the statements financial the nature of the figures in disclose: changes in the financial can only be statements; the enterprise’s the financial accounting statements; in single operations and statements. • the domicile and legal period provided units or • the reporting its principal in business • the reporting thousands currency; and form of the enterprise, In addition the activities; register; currency; and of units of country of incorporation notes should the national • the level of • the name of the and address; disclose: • description of • the level of currency – precision used parent • organization precision used in the a description of the • the domicile litas. enterprise and structure and its in the presentation of nature of the enterprise’s and legal form ultimate parent significant presentation of financial operations and its of the enterprise of the changes during the figures in statements (full principal activities; enterprise, group; accounting the financial disclosure, country of • the name of the parent period; statements. condensed • the balance incorporation enterprise and ultimate disclosure) sheet date or and address; • parent enterprise of the names of In addition the the period group; and members of notes should • the domicile covered by the statutory and disclose: and legal form financial • either the number of supervisory of the statements; employees at the end of boards as of enterprise, the period or the average balance sheet • the domicile country of • the reporting for the period. date; and legal form incorporation currency; of the and address; • average enterprise, • the level of number of country of • a description of precision used employees split incorporation the nature of in the into and address; the enterprise’s presentation of management operations and the figures in and employees, • a description of its principal the financial amount of the nature of activities; statements; personal costs the enterprise’s per mentioned operations and • the name of the • whether the group, bonuses its principal parent financial paid to activities; enterprise and statements members ultimate parent cover the supervisory and • the name of the enterprise of the individual
8 Comparison of International Accounting Standards and Lithuanian Accounting Policies
Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 1) Republic Macedonia
statutory parent group; enterprise or a boards; and enterprise and group of ultimate parent • the average of enterprises; • amount of enterprise of the employees for loans, group; and the period, • ownership borrowings, management structure; guarantees • either the from it; given to number of • type of format of shareholders, employees at balance sheet, partners, the end of the income members of period or the statement and supervisory and average for the funds flow statutory period. statement; boards. • name of the general director and other members of the board of directors.
Reporting Financial statements should Generally, Financial Reporting period A 31 Dec year- Czech Accounting The financial year Financial Comparable to Comparable to Financial The financial year The financial year (SAS 23) Period generally be presented at financial statements should for enterprises is end is not Law specifies that is 12 months. The statements should IAS. IAS. statements should is 12 months from is 12 months from The Slovak Financial least annually. statements should generally be regarded as being mandatory. the accounting following generally be generally be January 1 to January 1 to Accounting Law statements need be presented at presented at least from January 1 to However the tax year should be accounting presented presented December 31. December 31. specifies that the to be presented at In exceptional least annually. annually. December 31. year-end is 31 January 1 to periods are annually in each annually, except accounting year least annually. No circumstances, where the Any exceptions Dec with returns December 31. permitted: case. in the first Subsidiaries and The financial should be January exceptions balance sheet date is The financial year The first reporting should be due by 30 April in reporting period parent companies statements are 1 to December 31. possible. changed and the financial is 12 months for year for the new The accounting authorized by the following year. Jan.1 – Dec.31; after incorporation must use the mandatory to be statements are presented the year ended 31 company (that are period of an Ministry of April 1 – March or after change in same financial issued at least The accounting for a period longer or December. registered until the accounting entity Finance. 31; a reporting period, year. annually and in period of an entity shorter than one year, October 1st) starts commencing it’s July 1 – June 30; in which cases case of merger or commencing or disclose: In the case where from the date of business activity Oct.1 – Sept.30. reporting period No exceptional cease of activity. terminating its financial the state or terminating its could be shorter circumstances are business • the period covered by the statements cover registration and business Permission shall or longer than 12 permitted. The Ministry of activities, may be financial statements; period ends on activities, may be be sought from months. Finance can shorter but not shorter/longer December 31, for shorter but not • the Estonian decide that longer than 12 the reason for a period than one year this companies that longer than 12 Ministry of financial months. In those other than one year fact should be are registered months. In those Finance to use an statements can cases the being used; and separately after October 1st cases disclosure accounting period also be issued at disclosure is disclosed. the first reporting as under IAS. • the fact those other than those dates other than similar as under year starts from comparative amounts for listed above (EAL the end of the IAS. the date of the the income statement, §17.2) financial year. state registration changes in equity, cash and ends on the flows and related notes Subsidiaries and December 31 in are not comparable. parent’s must use the next year. the same financial
Budget year. No companies submit permission is on monthly, required for these quarterly and changes (EAL annual basis their §17.4) financials to the high-level The accounting authorities. period of an accounting entity Banks provide commencing it’s National Bank of business activity, Belarus with their changing its fiscal daily balances year or and statutory terminating its audited balances business on annual basis. activities, may be shorter than 12 months, but may not exceed 18 months (EAL §17.3)
General Disclose: Comparable to Disclose: Financial Comparable to Comparable to Comparable to The following shall Comparable to Not defined. Disclose: Only contingent No such (Preface to the disclosure IAS (disclosed in statements of IAS. IAS except IAS (disclosed in be introduced in IAS. assets and disclosures are Comparable to SAS, 3. The • restrictions on title to • contingent s – the appendix) Belarussian disclosure the notes). the supplementary • security given in liabilities (if required as per IAS except the Systematic of assets; assets and balance corporate regarding pension notes: respect of possible to the prescribed disclosure SAS) Amounts contingent sheet companies and and retirement Amounts liabilities; quantify) and format of the regarding pension Comparable to • security given in respect committed for liabilities, financial plans, which is not committed for amounts financial and retirement IAS, except for: of liabilities; future expenditure quantified if • institutions are not specified. future expenditure • Of the liabilities contingent committed for statements. plans is not is disclosed in the possible; liabilities; • the methods of providing legally required to is disclosed in the entered in the future capital specified. In • no management comprise the balance sheet, addition the for pension and • subsequent management • expenditure. requirement report. following the full amount restrictions on following retirement plans; events. report. to disclose information of the liabilities, title to assets; disclosures are the methods • contingent assets and generally the remaining specified: of providing contingent liabilities, disclosed maturity of for pension di t th
9 Comparison of International Accounting Standards and Lithuanian Accounting Policies
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quantified if possible; and according to the which is longer and International than five years; • Commitments retirement • amounts committed for Accounting the full amount from the plans; future capital Standards: of the liabilities privatization expenditure. which are contracts; • restrictions on collateralized by • title to assets; a lien or similar subordinated liabilities; • rights, indicating security given in the type and respect of form of such liabilities; collateral; and • the methods of • the full amounts providing for of any financial pension and liabilities, which retirement are of plans; importance from • contingent the point of view assets and of evaluating contingent the financial liabilities, situation of the quantified if entrepreneur, possible; and but are not shown in the • amounts balance sheet. committed for future capital expenditure.
Specific As a minimum on the face The balance sheet As a minimum the As a minimum on Comparable to Prescribed format The balance sheet The division of the Balance Sheet: As a minimum on As a minimum on The balance sheet Prescribed format (SAS 24) As a disclosure of the balance sheet: format complies information to be the face of the IAS. for the balance format complies balance sheet, as the face of the the face of the format complies As per IAS of financial minimum on the s – with IAS disclosed on the balance sheet: sheet is with IAS well as further balance sheet: balance sheet: with IAS statements covers face of the • property, plant and Tax liabilities and balance requirements face of the mandatory. The requirements rules regarding • Intangible requirements. all IAS items balance sheet: equipment; • property, plant assets to be sheet except that the balance sheet is balance sheet (EASB, Balance the contents of the assets required. and equipment, disclosed together differences as follows: format is more Sheet Accounts). individual items is • Formation cost; • intangible • intangible assets; including leased • with other (negative or detailed than contained in Fixed assets assets; In the notes • property, plant • property, plant assets; • payables / • positive) arising under IAS. Schedule No. 1. Intangible further sub- and equipment; financial assets; and equipment; • Long term • receivables from the assets; tangible fixed classifications in a • construction in financial • • equity-accounted exchange rates is assets; intangible • intangible progress; Balance sheet investments • Tangible No requirement manner investments; also included. assets; assets; items as assets; • long-term for presentation of appropriate to the • intangible described in • Inventory financial assets; minority interests. enterprise. In • long term • inventories; • financial assets; assets; Schedule No. 1 • Financial long addition for each investments; may be further • Accounts • line item the • trade and other term assets; long-term • investments; • financial assets; divided. receivable amounts payable • receivables; receivables; treasury stock; • Amounts to and receivable • inventories; • inventories; • Cash • • • cash and cash Invested assets, receivable after inventories; from parent inventories; current assets, enterprise, fellow equivalents; • • • one year; trade and other trade and other and deferred Share capital • trade and other subsidiaries and • non-current receivables; receivables; and reserves • • trade and other payables; expenses and Stocks and receivables; associates, and receivables; contract in • cash and cash • cash and cash accrued income • other related • Provision progress; • short-term • trade and other tax liabilities and assets; equivalents; equivalents; shall be shown in parties, should be the balance sheet securities; disclosed. current • Long term • • provisions; • • Amounts receivables; trade and other trade and other as assets. liabilities • cash and cash receivable • payables; payables; equivalents; • short term non-current interest- Assets shall be • within one year; Current investments; bearing liabilities; • tax liabilities • tax liabilities divided into liabilities • Investments • deferred and assets; and assets; • minority interests; and invested assets and term expenses; • cash and cash and current assets Comparable to • • deposits; equivalents; • issued capital and provisions for provisions; on the basis of IAS. • equity; bad and their purpose and • • prepaid reserves. • current and Cash at bank doubtful debts; utilization. • provisions; expenses and non-current and in hand; Additional headings and accrued • minority interest-bearing • subtotals should be Inventories, • Capital; long-term revenue; provided where necessary interests; and liabilities; receivables, liabilities; for a proper understanding. securities and • Share premium • equity: • issued capital • issued capital • short-term Other line items may be liquid assets shall account; and reserves. and reserves. liabilities; • prescribed by specific IAS. be placed in the basic • Revaluation capital, Amounts payable Additional group of current • Either on the face of the reserve; accruals and to and receivable headings and assets. balance sheet or in the deferred • share from parent subtotals should In the balance- notes - further sub- • Reserves; income. premium, enterprise, be provided where sheet equity, classifications in a manner subsidiaries and necessary for a provisions, • • appropriate to the Profit (loss) Additional reserves, associates, and proper liabilities, and enterprise’s circumstances. brought headings and other related understanding. accrued expenses forward; subtotals should • retained and deferred For each line item, parties should be Other line items be provided by earnings, • segregate amounts payable stated on the face may be prescribed income shall be Provisions; medium and large • revaluatio to and receivable from of the balance by specific entered among size companies. • Postponed n, parent enterprise, fellow sheet. statutory rules. liabilities. taxes; subsidiaries and associates • Either on the face Equity is current and other related parties. • of the balance composed of Amounts year profit sheet or in the issued capital - payable after or loss;
10 Comparison of International Accounting Standards and Lithuanian Accounting Policies
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sheet or in the issued capital - one year and notes - further decreased by the long term • provisions; sub-classifications issued but unpaid liabilities; • in a manner capital, capital long-term appropriate to the reserve, • Amounts liabilities from enterprise’s accumulated profit payable within financing; one year and circumstances. reserve, • long-term evaluation short-term liabilities. operating reserve, and the liabilities; balance sheet • All of these profit or loss figure • short-term of the subject accounts should be further liabilities from year. financing; classified into a Liabilities are the smaller account • trade and other acknowledged on the face of payables; payments to be the balance performed in cash sheet. • accrued and arising from expenses and supply, work, This format is set deferred service and other by supervisory revenue; contracts which bodies and can are related to not be changed. Small enterprises supplies, services that do not belong and the provision to a group for of money already which a performed by the consolidated supplier, balance sheet is entrepreneur, prepared, should service provider, include in their creditor or the balance sheet at party extending a least the items loan, and above, while accepted and medium size acknowledged by enterprises should the entrepreneur. also disclose There are long- more details on term and short- items of fixed term liabilities. assets and inventories.
Additional disclosures (further sub- classifications) should be provided either on the face of the balance sheet or in the notes where necessary and prescribed by specific IAS. For each line item, segregate amounts payable to and receivable from parent enterprise, fellow subsidiaries and associates, and other related parties.
Specific For each class of shares, Not specified. Not specified. No specific Comparable to Comparable to Comparable to In the case of a Comparable to Should be For each class of Comparable to On the face of the Comparable to Comparable to disclosure disclose: disclosure IAS. IAS. IAS (EAL share company, IAS. disclosed: shares, disclose: IAS. balance sheet IAS. IAS, except for: s –share requirements Appendix 3). the number and only a disclosure • • • capital the number of shares exist. face value of • structure of the number of is made regarding dividends authorized; shares with a capital, shares nominal value of proposed but breakdown by indicating subscribed; share capital not formally • the number of shares types of shares amounts of issued and paid approved; issued and fully paid, and • par value of shall be indicated common and out of total value issued but not fully paid; subscribed in the preferred of share capital shares; • the par value per share supplementary stocks, issued. or that the shares have notes. • the number of • state owned In the notes, no par value; shares with capital, information are privileges. presented in • a reconciliation of the • number of relation with the number of shares shares, foreign investors outstanding at the only: percentage beginning and end of the • uncalled of ownership (%), year; amounts and contribution
11 Comparison of International Accounting Standards and Lithuanian Accounting Policies
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amounts and contribution • dividend and capital called amounts kind/cash, rights and restrictions; unpaid, increase/decrease • separately during the year, shares in the enterprise disclosing the conversion debts held by the enterprise largest to shares, if any. itself or by its shareholders or subsidiaries or its debtors. associates; • • The possibility arrears of cumulative of converting dividends; debts into • dividends proposed but shares must be not formally approved; discussed. and
• shares reserved for future issuance.
Specific Provide a description of the The nature and Not specified. No specific Comparable to Basically Not specified. The non- Comparable to Not defined. Not specified All types of equity Not specified. Comparable to Obligatory disclosure nature and purpose of each the purpose of the disclosure IAS. comparable to distributable IAS. must be identified IAS. disclosures of s – other reserve within owners’ reserves are requirements IAS. capital reserve and disclosed in equity: equity equity. established by exist. The and the non- the financial • Basic capital – law. breakdown and distributable profit statements, share capital, movements of reserve broken including: components of shareholders’ down per legal • Share premium, other equity is titles should be capital, reserves, presented on the presented in the revaluation • Reserves face of statement supplementary reserves, other (statutory of changes in notes. funds, etc. reserves, other equity. reserves),
• Retained earnings,
• Revaluation (separately disclose):
• Revaluation of share capital,
• Revaluation of share premium,
• Revaluation of reserves,
• Revaluation of retained earnings);
• Current year profit or loss.
Statement Present a separate Not specified. Present a The equity Comparable to Statement of Comparable to Not specified. Comparable to Should disclose: Disclosure is Comparable to Statement of Not specified. of component of the financial separate statement has IAS. changes in equity IAS (EAL, IAS. required in the IAS. changes in equity changes in statements showing: component of the four columns: is required as a Appendix 3), • information notes of is required as part equity financial opening balance, part of the notes. except information on changes movements in the • of the footnotes in • the net profit or loss for As per IAS statements debit turnover, The requirement about non- in capital if equity balances. a prescribed table the period; showing: credit turnover, is comparable to monetary these No separate • Not format. The and closing IAS. In addition contributions and changes component of the applicable requirement is • each item of income or • a reconciliation balance with rows disclosure dividends must be have financial comparable to expense, gain or loss between the showing regarding added. occurred, statements, IAS. which is recognized carrying amount components of distributions of including the except for publicly directly in equity and the of each class of equity. profit and how reason for traded companies. total of those items equity capital, loss will be such (irrespective of format share premium Publicly traded covered. changes. chosen); and and each companies are
reserve at the No recognition required to • the cumulative effect of beginning and directly on equity prepare a prior period adjustments. at the end of the is allowed except separate • Either within this statement, period, transactions with component of the Not or in a separate note, disclosing each owners and grant financial applicable disclose: movement; received statements specifically in showing: • Not • • the net profit or order to improve applicable capital transactions with • owners; loss for the the capital of the equity opening period; company. balance as previously
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reported; • the balance of • the balance of accumulated profits at accumulated • effects of • the beginning and at the profits at the changes in Not end of the period, and beginning and accounting applicable the movements for the at the end of the policies;
period; and period, and the • movements for effects of • a reconciliation between the period; corrections of the carrying amount of fundamental each class of equity • each item of errors; capital, share premium income or • Not and each reserve at the expense, gain • restated equity specified beginning and at the end or loss which is opening of the period, disclosing recognized balance; each movement. directly in equity • and the total of movements in These disclosures will all equity those items usually be provided in a (irrespective of balances; columnar format, which format chosen); • the net profit or reconciles between the and opening and closing loss for the balance of each element • the effect of period; within shareholders’ equity. changes in • equity closing Alternatively, a separate accounting balance. statement may be prepared policies. which includes only the first category and the items in These disclosures the second category are are to be provided shown in the notes to the in a columnar financial statements. format where the opening and closing balance of each element within shareholders’ equity is reconciled.
Specific At a minimum, on the face Comparable to At a minimum, on On the face of the Comparable to Prescribed format Comparable to At a minimum, on Profit and loss For profit and loss At a minimum, on Comparable to Comparable to The income (SAS 25) At a disclosure of the income statement, IAS. the face of the income statement, IAS. for the income IAS. the face of the statement: statements format the face of the IAS. IAS statement should minimum, on the s – income disclose: income statement, disclose: statement is income statement, is defined, income statement, be presented in a face of the income The income statement disclose: mandatory. The The income disclose: • Turnover including the disclose: mandatory statement, • revenue; • revenue; statement formats income statement statement formats following captions: prescribed format, disclose: • revenue; • revenue; • • revenue; in the AL comply format is more in EAL comply Cost of Sales which is more • results of operating • results of with IAS • Net sales detailed than with IAS • Sales and detailed than activities; • operating operating • operating • Selling costs • cost of sales; disclosure revenues and under IAS. The disclosure services under IAS. This expenses; activities; format presents expenses; requirements. format presents capitalized own • finance costs; requirements. • Administrative (turnover from • gross profit; expenses by sales of goods the expenses by products or • financial • finance costs; • financial expenses An enterprise can • nature. and turnover • nature. services; share of profits and income/expens An enterprise can income/expens distribution choose between losses of associates and • profit or loss choose between • Other operating from services costs; es; Disclosure of es; the cost by nature Disclosure of • Purchase value joint ventures accounted from ordinary the cost by nature income rendered); revenues from or cost by function turnover (sales) or cost of goods for using the equity • extraordinary activities; or cost by function • extraordinary • administration main activity of • format. should be made sold; method; income/expens format. income/expens • Income from Cost of goods expenses; the company by chosen es; • extraordinary es; subsidiaries and sold and Dividends • divided between • other operating segments Gross profit; • tax expense; items; Dividends associates services proposed are foreign activities income; (generally product • financial result proposed are • financial result rendered (raw shown in an • Operating • • and Czech • or geographical profit or loss from before taxation; net profit or loss shown in an before taxation; Income from materials, allocation of profit expenses; activities. • other operating area). ordinary activities; for the period; allocation of profit securities and consumables report (a • tax expense; • tax expense; long term loans and goods for expenses; • Operating profit • extraordinary items; Income allocation Disclosure of report (a component of the Disclosure component of the resale; services, • approved annual or loss; • net profit or loss and breakdown of personal costs • net profit or loss • Other interest profit or loss on regarding • approved annual works and accounts). minority interests; and for the period. taxes paid is to be divided between for the period. income research); operating dividends per • Interest provided in categories of accounts). activities; share is not • revenues and net profit or loss for the additional employees and • Other interest • required. Gross profit; • other revenues period disclosure that management. expense financial from financing; accompanies • Operating revenues; Either on the face, or in the • income statement. Disclosure Extraordinary expenses • notes: • finance costs; Interest regarding income (selling expense and dividends per • an analysis of expenses expenses; • other expenses share is not • Extraordinary profit or loss on either by nature or general and from financing; specified. expense ordinary function (in either case, administrative activities; expenses); • Profit or loss depreciation and • Income tax amortization, and staff • extraordinary from ordinary • Profit from costs should be • Other taxes gains; activities; operations; disclosed); and • • Net profit or • extraordinary Extraordinary • Other • the amount of dividends loss for the losses; revenues and operations per share, declared or period expenses; (other operating • proposed, for the period profit before revenue; other • Total profit or covered by the financial Additional taxation; operating loss; statements. disclosure expenses); • income tax; requirements are
13 Comparison of International Accounting Standards and Lithuanian Accounting Policies
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comparable to IAS. • Financial and • net profit or loss • Taxes on profit; investing for the period. activities • Net profit or (revenue from Either on the face, loss for the financial and or in the notes: an financial year. investing analysis of Either on the face, activities; expenses either or in the notes: expenses of by nature or function. financial and • (SAS 25.5) investing Medium sized activities); and large enterprises • Profit from should break ordinary down revenues activities; into domestic • Extraordinary market and gain; abroad, as well as net revenues • Extraordinary from other losses; enterprises in the group, • Current year associated profit before enterprises, and taxes; others. Furthermore • Income taxes; they should give a breakdown of • Net profit of the interest income current year for from enterprises appropriation. in the group,
associated enterprises, and others.
An analysis of expenses either by nature or function (in both case, depreciation and amortization, and staff costs should be disclosed).
14 Comparison of International Accounting Standards and Lithuanian Accounting Policies
2. Inventories Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 2) Republic Macedonia
Measurem State at the lower of cost Not specified. State at the Measurement at Comparable to Inventory is stated Comparable to Inventory is stated Comparable to In the accounting, State at the lower Comparable to The inventories State at the lower (SAS 4) State at ent of and net realizable value balance sheet the lower of cost IAS. at lower of NRV IAS (EAL §34). at lower of NRV IAS. inventories shall of cost (stated as IAS are stated at cost of cost and net the lower of cost inventories (NRV). date at the lower and net realizable and acquisition and acquisition be evaluated at real cost, which but provision to be realizable value and net realizable of cost and fair value is permitted cost (purchase NRV is the cost (purchase the price of does not preclude made for any (NRV). value (NRV). Standard cost and retail value. but not obligatory. price plus relating estimated selling price plus relating acquisition, and in the inclusion of diminution in
methods permitted if the costs) or own cost price less costs) or own cost financial abnormal losses) value of inventory Standard cost not Net realizable results approximate cost. Fair value is the marketing mentioned in value – incurred (direct incurred (direct statements – at and net selling is suggested. This amount for which costs and directly expenses (EAL costs and directly actual costs. price (NSP). is not equivalent legislation. Retail comparable to IAS NRV is the estimated selling an asset could be attributed §34). attributed While calculating to the IAS method not price in the ordinary course exchanged, or a production production the actual cost, The costs of definition and will defined in of business less the liability settled, overheads). overheads). earlier inventory purchase of not result in a legislation. estimated cost of completion between acquired shall be inventories may similar valuation. and the estimated costs NRV is the knowledgeable, written off. not include necessary to make the sale. willing parties in transport and Additionally, the estimated selling an arm’s length handling costs if RAS definition of price in the
transaction. not materially cost is not as wide ordinary course of effects assets and as that of the IAS. business less the Cost is calculated financial results. There are also estimated cost of on the basis of the cases when completion and direct costs Work-in-progress general the estimated incurred in the may be carried at administration costs necessary normal course of direct cost of costs are taken to make the sale. the business plus production or into the cost of
an apportionment even at cost of inventories. of overheads. direct materials, if
not materially Standard cost and effects assets and retail method financial results. permitted as per IAS. Standard cost and retail methods permitted only during the year. At NBV is not the balance sheet defined. date such inventories should be valued using general measurement rules.
Inclusion of foreign exchange losses not allowed.
Costs of developed film and software is shown as inventory and charged to P&L exactly in the amount of revenue for the maximum of 36 months after which it is written off to P&L.
Cost Benchmark treatment - use Comparable to IAS Allowed treatment Comparable to Use FIFO, sliding Basic raw material, FIFO, weighted FIFO and weighted When latest The rules Only FIFO, Comparable to According to Comparable to Weighted average purchase price or measureme specific cost, FIFO or benchmark – use FIFO, LIFO, prescribe IAS. weighted average, IAS (EAL §34,5). average cost, Latvian legislation materials and average, and average only nt weighted average cost treatment – Under weighted average application of the or specific weighted average complete plant LIFO. IAS. cost, FIFO and allowed. the cost of the only FIFO and techniques formulas. Albanian or specific cost following identification LIFO is not cost or „elszámoló used in the Specific latest produced average cost LIFO is benchmark LIFO are allowed LIFO not allowed. Accounting Law formulas. treatments: methods are permitted (EAL ár” formulas. methods are process of identification items differ in the Alternative treatment allowed - only the FIFO production and allowed where – not alternative (RAL art. 68) accounting period acceptable. §34,5) allowed for No legislation but LIFO. method is No specific • LIFO; LIFO is not included in the relates to specific treatment. from the prices measuring the practice is: guidance for allowed in and/or cost of permitted. LIFO is not inventories. produced stocks projects. The same cost formula should measurement of • Weighted accordance with permitted. (products) cost No requirement for • The same cost items of inventory be used for all inventories inventories with average; the Hungarian No direct shall be valued in use of the same formula should of the same class, having similar nature and use different nature. accounting law. requirement in the Standard cost and the financial cost formula. be used for all the following to the enterprise. For • Standard cost ‘Act” to use the retail method statements by inventories methods may be inventories with different and deviation same cost for permitted, if the means of the FIFO having similar used: nature or use, different cost accounting. inventories having results method. In the nature and use formulas may be justified. similar nature and • moving approximate cost. event that stocks to the [SIC 1] use. average or its certain kind enterprise. For prices, moves otherwise in inventories with the enterprise, it different nature • weighted may be estimated or use, different and reflected in the average cost formulas prices, financial may be
15 Comparison of International Accounting Standards and Lithuanian Accounting Policies
Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 2) Republic Macedonia
statements by may be means of the LIFO justified. • FIFO and method or lever or LIFO. progressive When the LIFO average value, cost formula is concrete price or used the net other methods realizable value corresponding to and the carrying stocks’ movement value of inventory in the enterprise. should be Information on it determined so shall be given in that the difference references between the lower attached to the of two values and Notes relating to the value of the Annual inventories based Accounts; the said on the use of references among LIFO can be other things shall disclosed in the report profit that financial would be earned statements. The by the enterprise CV or carrying should it resort to value: amount of FIFO method in money needed for stock valuation. acquiring certain item at date of balance.
Write down Recognize as an expense in Not specified. Recognize as an Recognize as an Comparable to Comparable to Comparable to IAS Recognize as a Comparable to IAS If accounted stocks Write down to net Comparable to Net realizable Recognize as an Comparable to to net the period in which the write- expense in the expense in the IAS. IAS. (EAL §34). cost (Material cost value exceeds its realizable value IAS. value is not defined expense in the IAS. realizable down or loss occurs - any period in which the period in which the – total costs current market recognized in the under RAS but period in which the value reversal should be recognized write-down or loss write-down or loss method; Other price, the stocks period in which it provisions for write-down or loss in the income statement in the occurs. occurs - any general overheads may be re-valued occurs. diminution in value occurs - any period in which the reversal reversal should be - turnover costs by means of the of inventory are reversal should be Additionally, value occurs. In accordance with recognized in the method), no LCM (lower of cost suggested and are recognized in the of inventories of provisions of the income statement reversal is allowed. or market value) recognized as income statement products and Accounting Law, in the period in method, i.e. expenses in the in the period in goods for resale the write down to which the reversal reporting their period in which it which the reversal (except for used fair value is made occurs. acquisition occurs. occurs. goods kept at sale as at the balance (production) cost or outlets and those sheet date. market price in accounts and planned to be sold statements subject over a number of to which of these years) should be two is less. The written down difference between gradually over a the former value period not and the re-valued exceeding five one is given under years and the extraordinary commencing with charges of the the financial year profit and loss following the year account. of purchase or manufacture.
Disclosure Disclose: No specific Disclosure is not No disclosure Comparable to Disclosure: Disclosure Comparable to The following Disclose: Comparable to Disclose: Disclose: (SAS 4, 24) disclosure required but requirements IAS. required for write Disclose: IAS, however LIFO should be IAS, except with Comparable to • accounting policy and cost • accounting • the accounting • accounting requirements encouraged: exist. • accounting downs of assets does not apply. disclosed on the respect to LIFO. IAS, plus formula adopted; policy and cost policies used policy and cost exist. policy and cost (EAL, Appendix • face of balance additional • accounting accounting formula for valuation formula formula 3). sheet: disclosures of: • classification as policy and cost policy and cost adopted; and cost adopted; adopted; appropriate to the formula formula Inventories: formula • • • Components of enterprise; adopted; • classification as adopted; inventories adopted; classification in • raw material cost/unit of appropriate to pledged as the prescribed • inventories carried at • • classification as • inventory, inventories the enterprise; and security for classification in format of NRV, write- downs and pledged as appropriate to consumables; liabilities; the prescribed balance sheet; specifically
reversals; security for • inventories the enterprise; format of the disclose fixed • • • liabilities; carried at NRV, work in write-downs; balance sheet; inventories production • inventories pledged as • the quantity and write- downs progress; carried at net overhead that security for liabilities; • value figures of • inventories • basis for and reversals, if inventories realizable is not directly the opening and • finished recognized as linked with • apportionment material; carried at net value, write- where LIFO is used, the of overheads. closing production; an expense in realizable downs and inventories difference between • inventories inventories of the period. value, write- reversals; (indirect costs), carrying value and either • goods pledged as any dangerous down and necessary to the lower of cost (as purchased for • security for waste reversal; Not inventories bring the calculated using FIFO or resale; liabilities, if materials, and applicable; pledged as inventory item weighted average) and material any increase • security for to its current NRV, or the lower of immovable • and decrease in Not applicable; liabilities; status or point current cost at the balance property the quantity and of sale sheet date and NRV; and value of intended for • Not applicable • Inventories l
16 Comparison of International Accounting Standards and Lithuanian Accounting Policies
Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 2) Republic Macedonia
dangerous resale; recognized as • inventories recognized as waste materials • Not applicable an expense in an expense in the period in the subject • prepayments; the period or or operating costs year; • operating costs classified by their nature. contracts in classified by • inventories progress. their nature. carried at NRV, Where LIFO is write-downs, used, the base of difference determination of between carrying NRV; value and either • inventories the lower of cost pledged as (as calculated security for using FIFO or liabilities. weighted average) and NRV, or the lower of current cost at the balance sheet date and NRV.
17 Comparison of International Accounting Standards and Lithuanian Accounting Policies
3. Cash Flow Statements Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 7) Republic Macedonia
Enterprise All commercial, industrial or Cash Flow All commercial, There is no Comparable to All reporting All reporting All enterprises All business All enterprises Banks, insurance No such Not applicable All commercial, (Law on s required business enterprises (not Statement is not a industrial or mandatory IAS. entities. entities. who prepare an enterprises should that are subject to companies, obligations for because a cash- industrial or Commercial to present intended to apply to required part of business requirement to annual report. The prepare cash flow long-form financial investment funds, companies in the flow statement is business Companies, a cash flow employee benefit plans, the financial enterprises except prepare the cash supplementary statements. reporting forms brokers and Republic of not required by enterprises with paragraph 56) statement investment companies and statements. So in insurance flow statement. appendix contains are also subject to dealers in Macedonia. RAS. the obligation of not-for-profit organizations). the Albanian companies, the cash flow cash flow securities, joint the statutory audit Funds Flow Accounting no investment funds, statement. The statement stock companies. . (all joint stock statement – reference and employee benefit form of the cash presentation. companies, other obligatory for guidelines are plans and budget flow statement is In addition other business those companies, established. funded prescribed by Act entities which companies with which need enterprises. on Accounting. have achieved or the equity over 20 audited financial There are no exceeded at least mil. SKK or statements mandatory two of the revenues over 40 according to the requirements to following three mil. SKK). law on prepare cash flow criteria in the Commercial statements. financial year No obligation for Companies preceding the cash flow (paragraph 53). financial year for statement in which the financial consolidated statements are financial drawn up: statements.
• average annual employment – 50 people;
• total assets as at the end of the financial year – 1,000,000 Euro
• revenues and financial income – 3,000,000 Euro
are also required to present a cash flow statement.
Definition Cash on hand and demand Not specified Comparable to Not specified. Comparable to Monetary (cash Comparable to Includes cash on Cash on hand and Not defined. Cash (bank notes Comparable to Not applicable. Comparable to (SAS 24) Cash of ‘cash’ deposits. IAS. IAS. funds) is IAS (EASB, hand, checks, current accounts and coins) and IAS. IAS. on hand, checks, understood to be, Balance Sheet current accounts including foreign domestic and cash at banks and cash in hand Accounts). and short term currency. foreign monetary other financial including stamps (within 1 year) (settlement) units, institutions and vouchers, bank deposits. both on hand and cash in bank at bank or in form including any of money balance on the deposits. current accounts and cash in transit.
Definition A short-term, highly liquid Not specified A short-term, Cash on hand, Comparable to Cash equivalents Comparable to Cash equivalent is Cash equivalent is Not defined. Checks and bills Comparable to Not applicable. Comparable to (SAS 7) Definition of ‘cash investment that is readily highly liquid asset current accounts IAS. are understood to IAS (EASB, understood to be short-term of exchange IAS. IAS. of cash equivalent’ convertible to a known that is readily in national and be short-term Balance Sheet cash on hand, investments with issued by other equivalents in amount of cash, and subject convertible to a foreign currency in assets which can Accounts). cash at banks high liquidity, entities if they are terms of business to an insignificant risk of known amount of bank, special be easily denominated in which when payable within 3 finance comprise changes in value (interest cash, and subject accounts with a converted into a local and foreign converted does months of the instruments that rate risk and credit risk). to an insignificant bank, money in predetermined currency, and not change value date of drawing, may easily and risk of changes in transfer and other amount of cash special accounts. significantly. as well as quickly or in the Guidance notes indicate that value (interest cash-denominated and whose value precious metals, if near future an investment normally rate risk and documents (like is not subject to not included in reliably be qualifies when it has a short credit risk). paid flight tickets, significant tangible assets. translated into maturity of, say, three postal stamps fluctuations over a predetermined months or less from the date Additional etc.) period of time. amount of cash, of acquisition. Equity guidance when the risk is investments are normally indicates that an low that their excluded, unless they are in investment, which value might substance a cash equivalent has a short change prior to (e.g. preferred shares maturity of up to translation into acquired within three months three months from cash. of their specified redemption the date of date). acquisition, Cash equivalent qualifies as cash (not considered to equivalent. be cash):
• monetary assets whether or not they are
18 Comparison of International Accounting Standards and Lithuanian Accounting Policies
Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 7) Republic Macedonia
set aside for specific purposes with the possibility or obligation to use them for any other payment when there is a shortage of cash;
• time bank deposits subject to short notice;
• short-term bank deposits;
• generally acceptable foreign currencies;
• checks received for redemption;
• bills of exchange received for redemption;
• sight deposits subject to short notice, and short-term deposits in foreign banks denominated in generally acceptable foreign currencies;
• foreign exchange denominated in generally accepted foreign currencies;
• marketable securities quoted on a stock exchange.
These items are recorded as part of receivables, short term investments or short term liabilities, and do not refer to SAS 7–Cash.
Borrowing Bank overdrafts which are Not specified. Comparable to No type of Comparable to Overdrafts are not Comparable to Borrowings are Statutory Not defined. Borrowings are Comparable to Not applicable. Comparable to Bank overdraft– s to be repayable on demand and IAS. borrowing is IAS. included as a IAS (EASB, not part of ’cash’ regulations do not not permitted to IAS. IAS. not included. Bank included in which form an integral part included in cash component of Balance Sheet or ’cash specify, therefore be netted against overdraft in a form cash and of an enterprise’s cash and cash cash and cash Accounts). equivalent’. IAS should be the aggregate of credit line is cash management. equivalents. equivalents. used. balance of cash presented as equivalent and cash regular debt. s equivalents.
Classificati Analyzed between Not specified Analyzed between Not applicable. Comparable to Analyzed between Comparable to Comparable to Comparable to Statement of the Analyzed between Comparable to Not applicable. Comparable to Comparable to on of cash operating, investing and operating, IAS. operating, IAS (EAL IAS. IAS. changes in operating, IAS IAS. IAS. flows financing activities. investing and investing and Appendix 3). financial position investing and financing financing Interest and reports cash flows financing Interest and dividends activities. activities. dividends paid, during the current activities. received and paid may be interests received period from the
19 Comparison of International Accounting Standards and Lithuanian Accounting Policies
Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 7) Republic Macedonia
classified as operating, are considered as operating, investing or financing, Interest received Cash flows operating. investing and Interest and provided that they are and paid is connected with Dividend received financial activities dividends classified consistently from classified as transactions that is considered as of the enterprise. received are period to period. financing activity. create investing. classified as extraordinary investing, while Cash flows arising from Dividends profit or loss, cash Cash flows arising paid should be taxes on income are received and flows related to from taxed are classified as normally classified as dividends paid are collection and classified as financing. operating, unless they can classified as payment of operating. be specifically identified with investing and interest and Cash flows arising financing or investing financing activity dividends or profit from taxes on activities. respectively. shares and income are income tax classified as Cash flows arising Separate components of a payments are operating. from taxes on single transaction may be reported in the CF income are classified differently. statement on normally classified separate lines. as operating activity.
Direct DM encouraged, but IM Not specified. Both DM and IM Not applicable. Comparable to Not specified, Not specified, but Operating cash Comparable to Indirect method. IM required. Not specified – Not applicable. DM or IM (SAS 26) Funds Method acceptable. are acceptable. IAS. indirect is used in practice flow is presented IAS. Both of them acceptable. flow statements: (DM) or more often in comparable to IAS by IM, investing Publicly traded acceptable Indirect practice. (EAL, Appendix and financing companies – use Indirect method of Method 3). cash flow is of either method funds flow (IM) of presented by DM. allowed. accepted. presentatio n for operating cash flows
Extraordin Classify cash flows relating Not specified Comparable to Not applicable. Comparable to Extraordinary Not specified, but Classify cash Comparable to Not defined. Separate Not specified Not applicable. Comparable to (SAS 26) ary items to extraordinary items as IAS. IAS. accounting events in practice flows relating to IAS. disclosure of cash IAS. Extraordinary operating, investing or are usually comparable to extraordinary flows pertaining to items are financing as appropriate and considered as IAS. items as extraordinary classified as disclose separately. part of operating appropriate to the items is not operating. activities, unless transaction type. required. they can be recorded within financial or investment activities.
Exchange The rate in effect at the date Comparable to The rate in effect Not applicable. Comparable to Comparable to Comparable to The rate in effect These Not defined. Not specified. Comparable to Not applicable. The rate in effect Use middle rate used of the cash flows (permitted IAS at the date of the IAS. IAS. IAS (EAL 26)§. at the date of the transactions are IAS at the date of the exchange rate per for to use an average rate to cash flows. cash flows. translated into cash flows. Bank of Slovenia: transaction approximate the actual rate). LVL at the official s Bank exchange • as of the date of denominat rate on the date of transaction for ed in the transaction. profit and loss foreign items, and currency • as of the balance sheet date for balance sheet items.
Exchange The rate in effect at the date Not specified. The closing Not applicable. Comparable to Comparable to Comparable to Not specified. Not specified. Not defined. Not specified. Comparable to Not applicable. In the case of Middle exchange rate used of the cash flows (permitted exchange rate of IAS. IAS. IAS (EAL §26). IAS. consolidated rate of Bank of to translate to use an average rate to Bulgarian National financial Slovenia: the cash approximate the actual rate). Bank is used to statements cash flows of a translate the cash flow statement not • average foreign flows of a foreign required exchange rate subsidiary entity and the for the period exchange rate at for income the date of the statement cash flows is used • for the foreign as of the operation that is balance sheet an integral part of date for balance operations of the sheet items reporting enterprise.
Cash flows Where equity method used, Not specified. Proportionate Not applicable. Comparable to Comparable to Comparable to Not specified. Comparable to Not defined. Report only cash Comparable to Not applicable. Comparable to Not specified. of report only cash flows consolidation IAS. IAS. IAS (EASB, Equity IAS. flows between the IAS IAS. associates between the investor and the (applied for both Method investor and the and joint investee. associates and Proportionate Guideline). investee. ventures joint ventures) – consolidation is In the case of Proportionate consolidation - include the not allowed under The equity Proportionate consolidated include the venture’s share associate’s/ Czech accounting method is used in consolidation not financial
20 Comparison of International Accounting Standards and Lithuanian Accounting Policies
Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 7) Republic Macedonia
of the cash flows. venture’s share of law. the separate and allowed. financial the cash flows. consolidated statements cash accounts of the flow statement not venture under required. EAL and EASB guidelines.
Separate Aggregate cash flows Not specified Cash flows Not applicable. Comparable to No specific Comparable to Not specified. Comparable to Not defined. Aggregate cash Comparable to Not applicable. In consolidated (SAS 26) disclosure relating to acquisitions and relating to IAS. requirements. IAS (EAL, IAS. flows relating to IAS financial Classified as of cash disposals should be acquisitions and Cash flow relating Appendix 3). acquisitions and statements, the investing activity, flows presented separately and disposals should to acquisition and disposals of cash flow separate relating to classified as investing be presented disposals of shares in statement is not disclosure not acquisition activities. separately and subsidiaries and subsidiaries, required. In required. s and classified as other business associates, other single company disposals Disclose: investing units is presented business units separate financial of activities. as a part of cash and short term statements cash- • total purchase or disposal subsidiarie flow from investments flows relating to consideration; s and other No additional investment should be acquisitions and business • disclosure is activities. presented disposals of the portion of the required. units consideration discharged separately and shares in by means of cash and classified as subsidiaries, cash equivalents; investing associates and activities. other business • the amount of cash and units are cash equivalents in the No further classified as entity acquired or disclosures investing disposed of; and required. activities, separate The aggregate • the amount of the assets disclosure not cash paid or and liabilities in the required. received as subsidiary or business unit consideration is acquired or disposed of, reported net of summarized by each cash and cash major category. equivalents The aggregate cash paid or acquired or received as consideration is disposed of. reported net of cash and cash equivalents acquired or disposed of.
Non-cash Exclude from the cash flow Not specified Exclude from the Not applicable. Comparable to Comparable to Comparable to Non-cash Comparable to Not defined. Only cash Comparable to Not applicable. Comparable to Not specified. transaction statement investing and cash flow IAS. IAS. IAS. transactions are IAS. transactions IAS IAS. s financing transactions which statement any excluded from the presented in do not require the use of transaction, which cash flow investing and cash, but ensure that they does not require statement, there financing activities are disclosed elsewhere so the use of cash. is no requirement of the cash flow as to provide all of the to disclose. statement. relevant information. No further disclosures of non-cash transactions required.
Reconciliat Disclose the components of Not specified. Comparable to Not applicable. Comparable to Comparable to Comparable to Change on Cash Comparable to Not defined. Disclose the Comparable to Not applicable. Comparable to Not specified. ion with cash and cash equivalents, IAS. IAS. IAS. IAS. by cash flow IAS. components of IAS IAS. balance and present reconciliation to statement agrees cash and cash sheet amounts reported in the to change of Cash equivalents figures balance sheet. on the balance reported in the sheet. cash flow statement, which should be equal to figures presented in the balance sheet.
Amounts Disclose, together with a Not specified. Not specified. Not applicable. Comparable to Not specified. Comparable to Not specified. Comparable to Not defined. Not specified. Comparable to Not applicable. General Not specified. not commentary by IAS. IAS - may be in IAS. IAS requirement to available management, the amount of evidence in disclose in for use by cash and cash equivalents supervised footnotes assets the group held by the enterprise that is industries. with restricted not available for use by the access. group.
21 Comparison of International Accounting Standards and Lithuanian Accounting Policies
4. Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 8) Republic Macedonia
Net Profit Comprises the following Comparable to Comprises the Comprises the Comparable to Comprises the Comparable to Two permitted Comparable to Comparable to Format for profit Comparable to Operating, Prescribed format Comparable to or Loss for components, to be disclosed IAS following following IAS following IAS they must be forms of profit and IAS. IAS. and loss account IAS they must be financial and the of financial IAS, except to the Period on the face of the income components, to components, to components, to disclosed loss account (total specified by disclosed result from non- statements covers disclose statement: be disclosed on be disclosed on be disclosed on separately on the costs and regulations for separately on the recurrent all IAS items additionally: the face of the the face of the the face of the face the income turnover costs each specific type face of the income operations are required. profit or loss from income statement: income statement: income statement: statement (EAL method). of enterprise. statement. separately • profit or loss ordinary activities; and In the notes Appendix 2) and Components are disclosed on the from • profit or loss • profit or loss • operating (EAL §5). the same. All items of face of the income further sub- operating extraordinary items. from from profit or loss income and statement. classifications in a activities; expense manner All items of income and ordinary ordinary • financial recognized in a Recognition of appropriate to the • profit or loss expense recognized in a activities; activities; profit or loss period should be income and enterprises. from period should be included in and • financial included in the expenses is ordinary the determination of the net • Recognition of items; and • extraordinar extraordinar determination of comparable to In the notes for activities; profit or loss for the period income and y items. y profit or the net profit or IAS. each line item, unless an IAS requires or • expenses are • extraordinar loss loss for the segregate gross profit permits otherwise. comparable to y items. Some categories period. amounts of and loss of income and IAS. income and (profit and
All items of expense expense to and loss after income and (bonuses, from parent extraordinar expense financial aid, bad enterprise, fellow y activities); recognized in a debt provisions for subsidiaries and • period should be corporate entities associates, and taxes on included in the and some others) other related profit. determination of recognized in a parties. the net profit or period are not loss for the period included in the unless otherwise determination of required or the net profit or permitted. loss for the period. These Surpluses from categories are revaluation of recorded on fixed assets and respective reserve long-term accounts. investments and profit/loss from translating of foreign operation financial statements are excluded from the net profit or loss for the period.
Extraordina Extraordinary items arise Comparable to Extraordinary Comparable to Comparable to Extraordinary Comparable to In general the Comparable to Not defined. Extraordinary Comparable to In the RAS exists Extraordinary (SAS 18) ry items from events that are clearly IAS items arise from IAS. IAS. profit and loss IAS (EASB, definition is the IAS. items arise from IAS “exceptional” items arise from Extraordinary distinct from the ordinary events that are shall be Income Statement same, but there unique events, items. This events that are items include: activities of the company and clearly distinct considered to be Guideline; EAL, are exact outside the usual appears to be clearly distinct therefore are not expected to from the ordinary such profit or loss Appendix 3). transaction types business of the intended to be the from the ordinary EXTRAORDINAR
recur frequently or regularly - activities of the which is the result which are entity, in particular equivalent of activities of the Y REVENUES examples given are the company and of: determined as caused by: “extraordinary” company and unusual expropriation of assets or an therefore are not extraordinary by per the IAS, but therefore are not items; earthquake or other natural expected to recur a change in the Act on forces of the items expected to recur the method nature, disaster. frequently or Accounting. included, as frequently or prior period regularly – of valuation “exceptional” do regularly - the items; Ordinary activities are those examples given of assets not support this examples given discontinuat which are undertaken as part are the and definition. are, e.g.: payments ion or of the enterprise’s business expropriation of liabilities received to suspension and such related activities in assets or an The “exceptional” • changes in cover losses shortages of a certain furtherance of, incidental to, earthquake or items are the from prior and damage type of or arising from those other natural separately valuation of years; activities. activity disclosed, but assets, disaster. surpluses in (including a together with profit from financial Nature and amount of Ordinary activities significant other non- • errors in the sale of accounts extraordinary items to be are those through change in recurrent items incomes fixed assets. and financial separately disclosed (total on and by which the production which are not and investments the face of the income enterprise enters methods or considered expenses EXTRAORDINAR or, if statement, analysis in the into relations with the sale of extraordinary as from the Y EXPENSES applicable, notes). other enterprises, an per IAS. previous surpluses in unusual as well as organized years, purchased items; auxiliary activities, part of the Analysis of these inventory • which contribute entity), and accounts the natural (but no prior period for the enterprise (“exceptional” disaster, surpluses of items; development. income and intangible compromis • discontinued Ordinary activity expenses) has to provisions and tangible e operations, can be subdivided be disclosed in for potential fixed assets) arrangemen etc. into operating, the notes. losses; t financial and adjustments proceeding Ordinary activities investing losses from of expenses s or are not defined. activities. previous or revenues corporate
22 Comparison of International Accounting Standards and Lithuanian Accounting Policies
Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 8) Republic Macedonia
or revenues corporate years; of previous recovery Nature and accounting proceeding amount of loss from periods, if s. extraordinary the sale of significant items should be fixed assets. Definition of disclosed other ordinary activities separately (totals accounting not specified. in the income transactions statement, of an Nature and description in the extraordinar amount of notes). y nature extraordinary with regard items should be to the disclosed ordinary separately (total activities of on the face of the the income statement, enterprise, analysis in the in particular notes). the proceeds from transferring or closing the business or a part of the business of the accounting unit, etc.
Abnormal/ Items within profit or loss Not specified Not specified. No disclosure Comparable to Comparable to Comparable to Same Comparable to Not defined. Not specified, but Comparable to There is no There is a general Comparable to exceptional from ordinary activities of requirements IAS. IAS. IAS. (Supplementary IAS. so-called other IAS concept of rule: The notes to IAS. items such size, nature or incidence exist. Notes should operating income separate the financial that their disclosure is include all the and expenses are disclosure of statements should relevant to explain the figures to those shown separately. material figures in contain all facts performance for the period. contained in the the RAS. important to an
balance sheet and They include understanding of The nature and amount of the profit and loss proceeds and the current such items should be account, which NBV from sale of period’s financial separately disclosed (usually are necessary for fixed assets statements. in the notes). the true and fair (shown separately presentation of as income and
the entrepreneur's expense), particular financial donations, write- situation, and the offs of bad debts, results of its inventories and operations for the other assets and owners, investors liabilities. and creditors).
Correction Fundamental errors are of Comparable to Fundamental No regulatory Comparable to Not specifically Comparable to Comparable to Comparable to Not defined. Not specifically Comparable to The term Correction of According to SAS, of such significance that the IAS errors are of such rules in this area IAS. defined as a IAS (EASB, IAS; however the IAS. defined. Generally IAS “fundamental fundamental all fundamental fundament financial statements of one or significance that exist. separate category Income Statement determination of defined and dealt error” has no accounting errors accounting errors al more prior periods can no the financial of errors. Accounts – an error as with as ‘prior equivalent in the of prior periods, is are corrected as accounting longer be considered to have statements of one Fundamental fundamental is period items’. RAS. treated as an extraordinary errors been reliable at the date of or more prior Under Czech error, changes in based on financial adjustment to the expenses or accounting law The financial The amount of the their issue. periods can no accounting parameters; those The benchmark extraordinary revenues in the disclosure about impact of ‘prior corrections is longer be policies and being an error treatment is to be items. current period Benchmark treatment - treat significant items period items is included in the The benchmark considered to changes in greater that 1% of applied to material Comparative financial the correction of a are required, dealt with in the current period’s treatment is to be have been reliable accounting total assets or in items. information is not statements. fundamental accounting error applied to all at the date of their when they are estimates.) excess of 500 mil. current year profit results. restated. as an adjustment of the material items. issue. considered HUF. and loss account. Disclosure Although the RAS opening balance of retained important The benchmark requirements Disclosure in the Disclosure of allow for earnings and restate Benchmark (material) for the treatment is to be comparable to notes is required information about disclosure of comparative information. treatment - treat understanding of applied to material IAS. (amount, Disclosure significant events errors there is no the correction of a the financial items. description). Disclosures required: requirement not fundamental statements. related to The alternative requirement for specified. accounting error Disclosure previous periods treatment may be disclosure of the nature of the error; as an adjustment Correction of a requirements accounted for in applied to the nature, amount fundamental comparable to the current year and correction of effect in current and of the opening financial balance of accounting error IAS (EAL, financial statements fundamental error prior periods; retained earnings. must be included Appendix 3). statements as required by the effect on periods prior Restate in the current required. IAS. The alternative to those shown in comparative period’s results treatment may be For public comparative information; information but do and comparative applied to companies IAS and not amend the information immaterial benchmark approved financial presented as amounts. treatment is the the fact that statements. previously comparative information reported. only permitted has been restated or that it Disclosures treatment since
is impracticable to do so. required: 1999.
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Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 8) Republic Macedonia
Allowed alternative treatment the nature of Disclosures - the amount of the correction the error; required: may be included in the current period’s results and effect in specification Only the comparative information current and of alternative presented as previously prior corrections treatment under reported. periods; made; IAS is allowed - effect on the amount of the explanation prior periods correction must of their to those be included in the nature. shown in current period’s comparative results and information; comparative and information presented as the fact that previously comparative reported. information has been restated or that it is impracticabl e to do so.
The alternative treatment is not specified in NAS.
Changes in A change in accounting policy Requirement for A change in Adopted Comparable to A change in Comparable to The evaluation A change in Comparable to A change in A change in The term A change in (Preface to SAS, accounting should only be made if change in accounting policy accounting IAS. accounting policy IAS - if required principles applied accounting policy IAS. accounting policy accounting policy “accounting accounting policy number 6) A policy required by statute or by a accounting policy. should only be polices should be should be applied under an EASB in the preparation should only be should only be may be made policies” has no should only be change in an standard setting body or so No further made if required consistent during prospectively in guideline (EASB, of the balance made if required made so as to based on a equivalent in the made if required accounting policy as to give a more appropriate guidelines exist – by statute or by a reporting period. the current and Income Statement sheet for the by a standard give a more management RAS. by the changes in that has a presentation. comparable to standard setting A change in future periods. Accounts – previous year may setting body, appropriate decision approved the accounting material effect in IAS. body or so as to accounting policy Comparative Fundamental be changed only if Latvian laws and presentation. by the Board of Per RAS, a law or accounting the current period A change made on the basis give a more may be made information should error, changes in the factors regulations or so Directors. unilateral change regulations or so or may have a of a new IAS should be appropriate only: be presented as accounting causing the as to give a more No adjustment to of policy is not as to give a more material effect in accounted for in accordance presentation. previously policies and change prevail on appropriate the opening allowed without appropriate subsequent with the transitional if required reported. changes in a permanent presentation. balance of an accompanying presentation. periods should be provisions specified in the The change in by statute or retained earnings legal change. accounting basis, that is, for disclosed together standard. accounting policy by a rules estimates.) no less than a Benchmark and restatement The effect of the with the reasons. The bench mark The RAS does not is applied setting period of one treatment - other of comparative retrospective The effect of the Benchmark treatment - other treatment and allow prospectively. body; As of IAS (EAL year, and the changes should figures is required application of the change should, if changes should be applied disclosure amendments to §21.3 and EASB change be applied for companies accounting policy material, be retrospectively with an in the case requirements are be made guidelines). consequently retrospectively other than publicly may be included disclosed and adjustment to the opening of an entity’s comparable to regarding qualifies as with an traded in the current quantified. balance on retained earnings. reorganizati As of IAS (EAL, IAS. previous periods. permanent or adjustment to the companies. period’s results Comparative information on; Appendix 3). Any adjustments long-term. In this opening balance and comparative should be restated where on retained Disclosures: have to be made information in the case Alternative case the factors practicable. Disclosures: earnings and to Alternative in the current presented as of change of treatment is causing the the reasons the open treatment is period. previously Disclosures: ownership; allowed for change, and the for the change; • the reasons for information in allowed for reported. immaterial items. effect thereof As the concept of the change; financial immaterial items. • the reasons for the change; in the case expressed in effect on accounting statement’s The notes should • effect in current of necessity figures shall be financial result policies is not • effect in current and prior annex. disclose: and prior to optimize detailed in the of the year; applied in the periods; Comparative periods; the supplementary and RAS, the the reason accounting. appendix. information should • effect on periods prior to treatment does for the • effect on be restated where additional those shown in not meet this change, periods prior to The rules require No retrospective practicable. information comparative information; standard those shown in disclosure of the application is securing total effect. and Disclosure comparative reason for the allowed. comparability accounting policy requirement of prior period The IAS • the fact that comparative information; comparable to and change. figures. benchmark information has been IAS treatment is not
restated or that it is • For publicly allowed. Any the fact that impracticable to do so. traded companies changes are comparative an adjustment to applied only Allowed alternative treatment information has the appropriate prospectively and - the effect of the been restated equity balance no adjustments to retrospective application of or that it is with restatement the opening the accounting policy may be impracticable to of comparative balance on included in the current do so. Any changes are figures is retained earnings period’s results and Alternative not applied required. should be made. comparative information treatment is retrospectively Accordingly, no presented as previously allowed Additional and no restatement of reported. adjustments to the disclosures of the comparative opening balance effect of change A change in accounting policy information should on retained on financial should be applied be performed. earnings should position, prospectively when the be made. profitability and adjustment to opening
24 Comparison of International Accounting Standards and Lithuanian Accounting Policies
Albania Bulgaria Byelorussia Croatia Czech Estonia Hungary Latvia Lithuania Poland Republic of Romania Slovakia Slovenia Topic International (IAS 8) Republic Macedonia
adjustment to opening Accordingly no liquidity. retained earnings cannot be The following restatement of reasonably determined. does not comparative
constitute a information should change in be performed. accounting policy: