Fjárhagur

Fjárhagur, also known as a financial statement or balance sheet, is a comprehensive document that provides a snapshot of a company's financial health at a specific point in time. It is a critical tool for investors, creditors, and management to assess the company's performance and financial stability. The primary components of a fjárhagur include assets, liabilities, and equity.

Assets represent the resources owned by the company, such as cash, accounts receivable, inventory, and property. These are categorized into current assets, which are expected to be converted into cash within one year, and non-current assets, which are held for longer periods.

Liabilities are the company's financial obligations, including accounts payable, loans, and other debts. Similar to assets, liabilities are divided into current liabilities, due within one year, and non-current liabilities, which are due beyond that period.

Equity, also known as net worth, is calculated by subtracting liabilities from assets. It represents the residual interest in the assets of the company after deducting liabilities. Equity can be further divided into share capital and retained earnings.

The fjárhagur is typically prepared on an annual basis, but it can also be prepared for shorter periods, such as quarterly or monthly, to provide more frequent updates on the company's financial status. It is an essential document for making informed decisions about investing, lending, or managing a company.