ENThe harmonisation of public sector accounting standards within the EU is long overdue. At the same time, harmonised accrual accounting rules are only a necessary requirement to achieve improved financial management within the member states as improving efficiency and effectiveness of financial management is largely dependent on the context in which reforms are implemented. This paper focuses on the reform of budgetary accounting of Lithuania, a country new to the euro zone. Lithuania's success in driving the transformation of public finance management holds many lessons for developing countries. [From the publication]