1 / 26

The Institute of Accounting of the Republic of Lithuania

The Institute of Accounting of the Republic of Lithuania. The role of a National Accounting Standards Setter in the European Union. Overarching aim. Improvements to national accounting system from rules based (tax liked) rules approved by Ministry of Finance

csilla
Download Presentation

The Institute of Accounting of the Republic of Lithuania

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Institute of Accounting of the Republicof Lithuania The role of a National Accounting Standards Setter in the European Union Wednesday, September 7, 2005

  2. Overarching aim • Improvements to national accounting system • from rules based (tax liked) rules approved by Ministry of Finance • to independent standards setting system • full convergence with • European Union (EU) Directives • in respect to current situation in Lithuania achieved by Wednesday, September 7, 2005

  3. active cooperation with relevant EU institutions responsible for accounting issues and International Accounting Standards Board and other national accounting standards setters of EU countries and Wednesday, September 7, 2005

  4. enlightenment of professional society of international practice in accounting by translating IAS/IFRS and giving explanations for application by articles in professional journals and discussions in conferences while inviting experts of IASB executed by Wednesday, September 7, 2005

  5. the Institute of Accounting of the Republic of Lithuania (IoA) the non-profit organization established in under the Law of Accounting whose activity is Wednesday, September 7, 2005

  6. preparation of national accounting standards (Business Accounting Standards (BAS)); training of accounting professionals; participation in the IASB and EU institutions activity concerning accounting issues and Wednesday, September 7, 2005

  7. structure The Institute of Accounting of the Republic of Lithuania Founders – the highest body of the Institute the Board of Standards – approves BAS and methodical recommenda – tions the Adminis – tration – runs the activity of the Institute that are Wednesday, September 7, 2005

  8. Ministry of Finances – 50 % voting rights and Private audit companies and autonomous professional organizations – 50% voting rights Wednesday, September 7, 2005

  9. Objectives of the Accounting Standards Board • principles guiding the establish of BAS: • principle 1 – independent standard setting: • independent board members • meetings of board could be attended by public • thorough due process • no political influence and Wednesday, September 7, 2005

  10. principal 2 – practice based standards: methodical recommendations for each BAS based on realistic situations in practice prepared along with relevant standard lead to Wednesday, September 7, 2005

  11. high quality standards understandable enforceable transparent and comparable information … to help users to make economic decisions. Wednesday, September 7, 2005

  12. preparing and / or amending BAS: procedure: working draft co-ordination draft outgoing for the coordination with different institutions discussion draft confirmed business accounting standard Wednesday, September 7, 2005

  13. practice BAS, approved and published till 1 January, 2005 25 BAS concerning implementation guidance on financial reporting together with methodical recommendations for each standard exactly Wednesday, September 7, 2005

  14. BAS 1 Financial reporting BAS 2 Balance sheet BAS 3 Income statement BAS 4 Statement of changes in equity BAS 5 Cash flow statement BAS 6 Explanatory notes BAS 7 Changes in accounting policies, accounting estimates and correction of errors BAS 8 Equity BAS 9 Inventories BAS 10 Revenue from sales Wednesday, September 7, 2005

  15. BAS 11 Cost of sales and operating costs BAS 12 Non-current tangible assets BAS 13 Intangible assets BAS 14 Business combinations BAS 15 Investments in associates BAS 16 Consolidated Financial Statements and Investments in Subsidiaries BAS 17 Biological assets BAS 18 Financial assets and financial obligations BAS 19 Provisions, contingent liabilities and contingent assets, and events occurring after the balance sheet date Wednesday, September 7, 2005

  16. BAS 20 Operating lease, financial lease and loan-for-use BAS 21 Grants and subsidies BAS 22 Changes in foreign exchange rates BAS 23 Impairment of assets BAS 24 Income tax BAS 25 Construction and other long term contracts that are Wednesday, September 7, 2005

  17. announced immediately as approved in the official publication of Lithuanian on website of IoA all standards and methodical recommendations as well as discussion drafts – in Lithuanian language all standards – in English language www.apskaitosinstitutas.lt Wednesday, September 7, 2005

  18. projects on the agenda at the point of exposure draft amendments for BAS 12 Property, plant and equipment BAS 29 Interim financial reporting BAS 35 Reorganization of the companies BAS 36 Unlimited liability legal entities accounting at the point of discussion paper BAS 30 Related parties BAS 34 Segment reporting Wednesday, September 7, 2005

  19. addressing urgent issues promptly standards – if widespread and practical relevance with necessity to prepare in short time inquiries from different entities in 10 days – if not arguable in one month – if arguable Wednesday, September 7, 2005

  20. International cooperationwith relevant EU institutions – ARC, EFRAG, IASB national standard-setters of other EU countries – Latvia, Estonia and etc. for Wednesday, September 7, 2005

  21. participation actively in the process of development of EU Directives and setting/amending IAS/IFRS for international practice and explanations according relevant issues and personal practice to share Wednesday, September 7, 2005

  22. structure of the Standards Board 4 full-time and 5 part-time members sole responsibility for setting agenda and standards presently from different institutions and companies exactly Wednesday, September 7, 2005

  23. 1 member − Ministry of Finance 2 members − audit and accounting professionals 1 member − Securities Commission 1 member − Insurance Supervisory Commission 4 members – full time members … and 2 representatives from Tax Department as permanent visiting participants that Wednesday, September 7, 2005

  24. the Standards Board’s work is supported by: 4 technical staff that consist of 2 experts of accounting prepares standards, methodical recommendations and answers to inquiries linguist – gives explanations over phrase of provisions lawyer – gives explanations of compliance with other laws and Wednesday, September 7, 2005

  25. the Standards Board’s work is financed from: state budget commercial activity of IoA publishing – binders of BAS and methodical recommendations seminars and courses – for accounting and audit professionals Wednesday, September 7, 2005

  26. Early changes • Change of founders • exclusion of private audit companies • Withdrawal of commercial activity as • to be financed only from state budget Wednesday, September 7, 2005

More Related