Regnskapsforhold

Regnskapsforhold is a Norwegian term used to describe the conditions, rules and circumstances under which a business maintains its accounting and prepares its financial statements. It encompasses both day-to-day bookkeeping and the broader requirements for recognition, measurement, presentation and disclosure of financial information. Regnskapsforhold are shaped by national law, accounting standards and the organization's own policies, and apply across the financial reporting process.

Regulatory framework: In Norway, regnskapsforhold are governed by the Regnskapsloven (Accounting Act) and related accounting standards. Depending on size and sector, entities may follow NGAAP (Norwegian Generally Accepted Accounting Principles) or IFRS for group accounts. Publicly listed companies typically apply IFRS, while smaller entities may follow simplified NGAAP rules. Auditing and supervision by authorities further influence regnskapsforhold, ensuring compliance and accountability.

Contents: Regnskapsforhold cover how transactions are recorded, how assets and liabilities are recognized and valued, and how revenues and expenses are recognized. They include rules for depreciation and impairment, inventories, leases, financial instruments, and equity, as well as consolidation for groups. In addition, they require appropriate disclosure notes, consistent accounting policies, and maintenance of internal controls.

Importance: Clear regnskapsforhold enhances comparability across companies and over time, supporting informed decision-making by investors, lenders and authorities. It underpins the reliability and transparency of financial reporting, influences taxation and regulatory compliance, and supports good corporate governance and accountability within organizations.