Lithuania: From 1 January 2015 the euro will be the official currency in Lithuania. Have you already taken all the necessary precautions?
Have you already taken all the necessary precautions? No? Then we would like present you a small checklist that covers some important formalities which come along with Euro introduction.
As of August of this year, dual pricing in Litas and Euro will be obligatory. Experience from other countries shows that dual pricing reduces the risk of unjustified price increases. Do you know the exact requirements?
Rounding of prices requires special attention, since a too strong rounding may adversely affect the company balance sheet. Bearing in mind that rounding € 2.51 to € 2.50 is equivalent to a price drop of 0.4% it becomes clear that a fine line exists between consumer-friendly rounding policy and profitable rounding policy. Do you know in which cases you are allowed to round up prices?
Articles of association need to be adjusted as well and a company that owns shares should pay special attention to the impact of currency conversion. Changes are possible in the number of shares based solely on conversion and rounding. What also follows is a possible change of authorized capital. Appropriate shareholder resolutions are needed here. Are you familiar with the formulas to be used? And have you already thought about the necessary steps to amend your articles of association?
The new law also sets a general mathematical rounding scheme in salary conversions: one Euro cent will be added to salary if the third digit is greater than 0 after conversion. The same principle applies to conversion of pensions and other social benefits. Do your accountants already know about the appropriate rounding method?
Need you adjust contracts for the changeover to the Euro? Have your personnel been fully informed?
To ensure an easier transition from the old currency to the new, to make business processes as smooth as possible and last but not least to meet all legal requirements – all of these need thorough preparation, which in turn takes time.
In short, now is the time to deal actively and intensively with the new legal regulations and take the right steps towards a trouble-free currency changeover!