Tilinpäätöslaki

The Finnish Accounting Act, known in Finnish as the tilinpäätöslaki, is the primary legislation governing financial reporting and annual accounts in Finland. It establishes the principles and requirements for preparing, presenting, and approving financial statements for companies and other entities operating within Finland. The act aims to ensure transparency, comparability, and reliability of financial information, serving the interests of stakeholders such as shareholders, creditors, and tax authorities.

Key provisions of the tilinpäätöslaki include the definition of what constitutes an annual report, which typically comprises a financial statement, a report by the board of directors, and often an auditor's report. It outlines the mandatory components of the financial statement, including the balance sheet, income statement, and notes to the accounts, specifying the information that must be disclosed. The act also sets out rules for the valuation of assets and liabilities, the recognition of income and expenses, and the principles of accrual accounting.

Furthermore, the tilinpäätöslaki details the procedures for the approval of the annual accounts, which usually involves a general meeting of shareholders. It also addresses the responsibilities of the company's management and board of directors in ensuring compliance with the act. The requirements can vary slightly depending on the size and legal form of the entity, with specific provisions for micro-enterprises, small companies, and larger corporations, often referencing international accounting standards where applicable.