HARMONIZATION OF ACCOUNTING PRACTICES: THE CASE OF ACCOUNTING FOR PPE IN LITHUANIAN NON-LISTED COMPANIES

摘要

Accounting harmonization is aimed enhance accounting and information disclosure comparability across and within the countries and by decreasing de jure and de facto variations of such practices and disclosures. Non-listed companies comprising more than 90% of all the companies in Lithuania and the EU receive very little attention in accounting harmonization related research - such research primarily address issues related to IFRS adoption in listed companies. This paper is aimed to gather the evidence on the accounting practices of Lithuanian non-listed companies in the area of accounting for PPE and to assess the level of their harmonization. To collect information a survey method has been employed and representative sample of Lithuanian non-listed companies' population had been surveyed. Results of the survey reveal that 89.46% of non-listed companies use cost method to measure PPE after initial recognition; 44.5% - set a minimum recognition value from 500 to 1000 EUR; 88.5% - use the straight-line depreciation method; and 68.2% set a residual value of 1 EUR. In general, the level of harmonization of accounting practices in Lithuanian non-listed companies is above average. Comparability of accounting information across non-listed companies from within-country perspective is not accomplished.