Bókhaldslög

Bókhaldslög refers to accounting laws in Iceland. These laws govern the principles and practices of keeping financial records for businesses operating within the country. The primary legislation in this area is the Act on Accounting, which sets out the requirements for bookkeeping, financial reporting, and the preservation of accounting documents.

The purpose of Bókhaldslög is to ensure transparency, accuracy, and comparability of financial information. This facilitates responsible business management, aids in tax collection by the relevant authorities, and provides a basis for economic analysis and decision-making. Companies are required to maintain their accounting records in a manner that allows for a clear overview of their financial position and performance.

Key aspects covered by these laws include the proper recording of all financial transactions, the preparation of annual financial statements (such as balance sheets, income statements, and cash flow statements), and the retention of accounting records for a specified period, typically seven years. Specific rules may also apply to different types of entities, such as limited liability companies and sole proprietorships. Auditing requirements, though often distinct from basic bookkeeping laws, are also closely related to the overall framework of financial accountability in Iceland.