Omsetningar

Omsetningar is the Icelandic term for turnover or sales, referring to the total revenue generated by a company from its primary business activities over a specific period. It is a key indicator of a firm’s operational performance and is recorded on the income statement as the top line figure from which costs and expenses are deducted to arrive at profit.

The calculation of omsetningar is straightforward: it involves summing all the invoices issued and the cash received from customers during the reporting period, adjusted for returns, discounts, and allowances. For companies that operate on a subscription or lease basis, omsetningar may be recognized proportionally over time according to the delivery of services.

In Iceland, omsetningar figures are required by the Icelandic Financial Reporting Standard 1 (FRS 1) for financial statements that do not conform to the International Financial Reporting Standards. The figure is used by shareholders, creditors and regulators to assess a company’s liquidity position, growth prospects and the effectiveness of its sales strategies.

Analysts compare omsetningar year‑on‑year and against industry peers to gauge market share, pricing power and operating efficiency. A rising omsetningar trend often signals successful product launches or market expansion, while a decline may prompt a review of sales channels or cost structures.

Because omsetningar is a headline number that is visible to investors and tax authorities, it is subject to regulatory scrutiny and must be supported by detailed sales ledgers and audit evidence. Accurate recording of omsetningar therefore underpins both managerial decision‑making and statutory compliance.