Bókhaldsreglum

Bókhaldsreglum translates from Icelandic to English as "accounting rules." This term encompasses the principles, standards, and practices that govern the recording, classification, summarization, and reporting of financial transactions for an entity. These rules ensure that financial information is presented in a consistent, comparable, and understandable manner. In Iceland, as in many countries, accounting rules are often derived from or harmonized with international standards to facilitate cross-border business and investment. The primary objective of adhering to bókhaldsreglum is to provide a true and fair view of the financial position and performance of a business.

The specific bókhaldsreglum applicable to a company in Iceland may depend on its size, legal structure, and whether it is publicly traded. For instance, smaller entities might follow simplified rules, while larger or listed companies would typically adhere to more comprehensive frameworks. These rules dictate how assets, liabilities, equity, revenue, and expenses are recognized and measured. They also cover aspects like depreciation, inventory valuation, and the presentation of financial statements such as the balance sheet, income statement, and cash flow statement. Compliance with bókhaldsreglum is often a legal requirement and is crucial for financial reporting, tax purposes, and decision-making by stakeholders.