Årsregnskabsloven

The Årsregnskabsloven, often translated as the Danish Financial Statements Act, is the primary legislation governing the preparation and presentation of annual financial statements in Denmark. Its purpose is to ensure transparency, comparability, and reliability of financial information for various stakeholders, including investors, creditors, and the public.

The law dictates the structure and content of financial reports, including the balance sheet, income statement, cash flow statement, and notes to the accounts. It also specifies accounting principles and valuation methods that companies must adhere to. The Årsregnskabsloven categorizes companies into different classes based on size and type, with varying reporting requirements. Smaller companies generally have simpler obligations compared to larger public entities.

Key provisions of the act include requirements for the annual general meeting to approve the financial statements, the obligation to file the statements with the Danish Business Authority (Erhvervsstyrelsen), and rules regarding the auditor's report. The law aims to align Danish accounting practices with relevant EU directives and international standards, promoting consistency within the European market. Amendments to the Årsregnskabsloven are periodically introduced to adapt to evolving economic conditions and regulatory landscapes.