fjárhagsreikningar

Fjárhagsreikningar are financial statements that provide an overview of an entity's financial position and performance over a specific period. Commonly used by companies, organizations, and institutions, these reports are essential tools for stakeholders to assess financial health, profitability, and liquidity.

Typically, fjárhagsreikningar include a balance sheet (eignatöku, einnig kallað efnahagsreikningur), an income statement (reikningur um hagnað eða tap), and a cash flow statement (reikningur um inn-og útstreymi). The balance sheet details assets, liabilities, and equity as of a specific date, offering insight into the financial stability of the entity. The income statement summarizes revenues, expenses, and profits or losses over the reporting period, reflecting operational performance. The cash flow statement tracks the inflow and outflow of cash, demonstrating how the company manages liquidity.

The preparation of fjárhagsreikningar is governed by accounting standards and regulations, which aim to ensure accuracy, transparency, and comparability. Depending on the jurisdiction and the size of the entity, different reporting frameworks might be applied, such as International Financial Reporting Standards (IFRS) or local accounting standards.

Fjárhagsreikningar are vital for decision-making by management, investors, creditors, and regulatory authorities. They facilitate informed evaluations of financial viability, operational efficiency, and future prospects. Regular and accurate financial reporting also enhances trust and compliance within financial markets.

In Iceland, for example, companies are required to prepare and disclose fjárhagsreikningar in accordance with local legislation, which aligns with European Union standards, promoting transparency and consistency across financial reporting practices.