ACCOUNTING MODEL AT RURAL DEVELOPMENT ORGANISATIONS IN LITHUANIA.

This research aims to complement scientific research in the field of the accounting methodologies and financial reporting in rural development organisations. The problem of the research is whether there are material differences between financial accounting and reporting at the NPOs and business entities, and whether these differences do not prevent financial information on the activities of the LAGs and rural communities from being properly disclosed. The research results reveal the accounting and financial reporting methodologies at Lithuanian rural development organisations and compare them with the global practise. Such methodologies can be described from several perspectives: financial accounting and financial reporting are based on generally accepted accounting principles; one of the main approaches in measuring the performance and recognising financing is the accrual principle; the expenses incurred in the implementation of certain programmes are grouped in accordance with the methodology adopted by the organisation and they are reflected in the Annual Report as operating expenses; the received and used targeted financing and unpaid voluntary work are detailed in the Explanatory Note. The research identified the following areas for improvement in the NPO accounting methodology and financial reporting: income and expenditure, financing, unpaid work, long-term assets and their reconstruction costs, and capital investments. The researchers made recommendations for addressing the identified problems. [ABSTRACT FROM AUTHOR]