The Growing Relevance of International Financial Reporting Standards (IFRS)

The adoption of International Financial Reporting Standards (IFRS) is increasingly important, not only for companies with foreign investments but also for Lithuanian companies aiming to expand in global markets. This move not only ensures improved financial management and transparency but also enhances investor confidence and business competitiveness.

The primary benefits of preparing financial statements by IFRS for the company are:

• Flexibility in financial accounting: IFRS are principles-based standards that offer flexibility.
• Comparability: It becomes easier for groups of companies to compare their financial position and performance in different jurisdictions.
• Efficiency: The consolidation process becomes clearer, and additional work and costs are avoided.
• Attracting investors: It becomes easier to attract international investors who are familiar with IFRS statements.

Read full article in Lithuanian here.