Fjárhagsuppgjörum

Fjárhagsuppgjörum refers to financial statements or settlements in Icelandic. These are formal records that detail the financial performance and position of an entity, such as a company, organization, or individual, over a specific period. The primary purpose of fjárhagsuppgjörum is to provide stakeholders with a clear and accurate overview of the entity's financial health.

Key components typically include an income statement (tekjureikningur), a balance sheet (eignfærslujöfnuður), and a cash flow statement (sjóðstreymisyfirlit). The income statement shows revenues earned and expenses incurred, resulting in a profit or loss. The balance sheet presents a snapshot of assets, liabilities, and equity at a particular point in time. The cash flow statement tracks the movement of cash in and out of the entity from operating, investing, and financing activities.

Fjárhagsuppgjörum are crucial for various purposes. They assist management in making informed business decisions, investors in assessing potential returns and risks, creditors in evaluating creditworthiness, and regulatory bodies in ensuring compliance with laws and accounting standards. The preparation and presentation of these statements are governed by specific accounting principles and regulations, aiming for transparency and comparability. Annual fjárhagsuppgjörum are often subject to audit by independent accountants to verify their accuracy and fairness.