Uppgjörsperiodunni

Uppgjörsperiodunni, meaning “the accounting period” in Icelandic, refers to the span of time for which a company or organization prepares its primary financial statements. The period ends on a specific closing date—the uppgjörsdagurinn—and the statements cover income, assets, liabilities, and cash flows for that interval. Typical practice aligns the uppgjörsperiodunni with a 12-month calendar or fiscal year, but the length can be shorter for newly formed entities or longer for special purposes, subject to applicable accounting rules. The chosen period becomes the reference for annual accounts, tax reporting, and future planning.

The content of the uppgjörsperiodunni is compiled into key financial statements: an income statement, a balance sheet, a cash flow statement, and accompanying notes. These are prepared in accordance with Icelandic accounting standards and the requirements of the Accounting Act, with the specific framework (for example, IFRS or local GAAP) depending on the size and type of entity and whether it is publicly listed.

Legal obligations around uppgjörsperiodunni include the preparation of annual accounts for the period and submission to the competent authorities; timing is governed by law and may involve audits for larger companies or groups. Changes to accounting policies or restatements affecting the period are disclosed in the notes.

In practice, the uppgjörsperiodunni forms the basis for financial reporting, tax computation, and performance evaluation, and it can apply to single entities or to consolidated group reporting.