Regnskabspraksis

Regnskabspraksis is the set of policies, conventions, and procedures that a business uses to prepare and present its financial statements. It encompasses the choice and application of accounting policies (such as revenue recognition, depreciation, impairment, and inventory valuation), estimation methods (for example allowances for bad debts and accruals), and the presentation and disclosure of information in the financial statements and notes. It is shaped by national laws, accounting standards, and, for certain entities, international standards.

In Denmark, accounting practice is influenced by the Årsregnskabsloven (Annual Accounts Act) and by the Danish accounting framework for non-listed companies. Publicly listed and larger groups may prepare under IFRS, while smaller entities may apply Danish GAAP subject to statutory requirements. Regardless of framework, regnskabspraksis requires adherence to core qualitative characteristics such as relevance and faithful representation, as well as comparability, verifiability, timeliness, and understandability.

Important principles include accrual accounting, going concern, prudence, consistency, and materiality. If a company changes accounting policies, it typically must disclose the change and adjust comparative figures unless impracticable. The choice of policy and the use of estimates should be disclosed in notes to the financial statements, together with information about significant judgments, risk exposures, and contingent liabilities.

Notes to the financial statements explain the accounting policies, significant estimates and judgments, and provide details about risk exposures, financial instruments, and contingent liabilities. Good practice emphasizes transparent disclosure, internal controls, and alignment with regulatory requirements, ensuring that users of the financial statements can assess the company’s financial position and performance.