After the Ministry of Agriculture improved the procedure for farmers' financial accounting in the form of a double entry, farmers will now be able to analyse the results of economic transactions more easily and make decisions based on financial data.

The description of the double entry financial accounting of the activities of farmers and residents engaged in individual agricultural activities who are not registered as a farmer needed to be updated in order to adapt to recent changes introduced by the Financial Accounting Law. It was also necessary to ensure that the financial accounting treatment of farmers' activities was clearer and easier to apply in daily business and to guarantee a more accurate representation of the farming activities in the financial documents.

In developing this description, the MAF has worked closely with specialists in financial accounting from the Lithuanian Agricultural Advisory Service and the VMU Academy of Agriculture, who have provided a number of valuable suggestions.

The updated description does not contain any new requirements for accounting, but only elaborates and supplements the provisions already in force. It also clarifies the guidelines for the completion of the model forms for farm financial statements, which relate to the value of fixed assets, which will have to be calculated by deducting not only the accumulated depreciation but also the depreciation of the asset (if it has been depreciated) from the acquisition cost of the fixed asset. Please note that for farmers with double entry accounting, there is no change in the form of the financial statements.

The main additions to the Schedule are:

• Clarification of the characteristics of assets that are classified as fixed assets;

• Further clarification on how to calculate the acquisition (production) cost of fixed assets;

• Clarifies the accounting treatment of reconstruction and repair work on fixed assets;

• Regulates the determination of the acquisition cost of assets received free of charge;

• Clarifies the determination of the value of an asset when contributions are made to a holding in the form of assets;

• Clarifies the accounting for grants received and the recognition of grants used in the accounts;

• Provisions have been added to the description to correct errors made in prior periods, depending on whether the error is material and affects the fairness of the financial statements;

• Revised the name of Account 17 to read "Biological assets and other non-current assets";

• A new account has been added to the chart of accounts „272 Cash register collections“;

• Further clarification of revenue and expense recognition in accounting;

• An inventory section has been added to the description, which explains the procedure for taking an inventory and the recommended tools for taking an inventory.

The updated Schedule will come into effect from 1 January 2025.This Schedule and much other useful information can be found here.