EU Directive 2013/34/EU was adopted to reduce the administrative burden on small businesses. By transposing provisions of Accounting into Lithuanian legislation: Law Financial Accounting, Corporate Reporting, and Business Standards, micro-enterprises have had their reduced by simplified financial reporting requirements. A 2018 study Ministry Finance Republic Lithuania states that intended benef...

Understanding financial statements is imperative for better management of corporations, while system dynamics (SD) offers dynamic modeling and simulation skills for better strategies of management. This paper tries to present a consolidated principle of accounting system dynamics on the basis of simple principles from SD and accounting system. It is, then, specifically applied to model corporat...