fjármálaskýrslur

Fjármálaskýrslur, often translated as financial statements, are formal records of the financial activities and position of a business, person, or other entity. They are a crucial tool for understanding the financial health and performance of an organization. The primary purpose of these reports is to provide information to stakeholders, including investors, creditors, management, and regulatory bodies, to aid in decision-making.

Key fjármálaskýrslur typically include the balance sheet, the income statement, and the cash flow statement. The balance sheet provides a snapshot of an entity's assets, liabilities, and equity at a specific point in time. The income statement, also known as the profit and loss statement, reports an entity's financial performance over a period of time, detailing revenues, expenses, and resulting profit or loss. The cash flow statement tracks the movement of cash into and out of an entity over a period, categorizing it into operating, investing, and financing activities.

These statements are prepared according to established accounting principles, such as IFRS (International Financial Reporting Standards) or GAAP (Generally Accepted Accounting Principles), to ensure consistency and comparability. Regular preparation and analysis of fjármálaskýrslur are essential for effective financial management, strategic planning, and compliance with legal and regulatory requirements. They allow for the evaluation of profitability, liquidity, solvency, and overall financial stability.