reikningagerð

Reikningagerð refers to the process of creating financial statements. This typically involves the systematic recording of financial transactions and their subsequent summarization into reports. These reports provide a snapshot of a company's financial health and performance over a specific period.

The primary documents involved in reikningagerð are the income statement, the balance sheet, and the cash flow statement. The income statement details revenues, expenses, and ultimately, profit or loss. The balance sheet presents assets, liabilities, and equity at a particular point in time, adhering to the fundamental accounting equation: Assets = Liabilities + Equity. The cash flow statement tracks the movement of cash in and out of the business from operating, investing, and financing activities.

Reikningagerð is essential for various stakeholders. Management uses these statements for decision-making, strategic planning, and performance evaluation. Investors and creditors rely on them to assess the financial viability and risk of an entity. Regulatory bodies often require these reports for compliance and transparency.

The process itself involves several steps, beginning with the initial recording of transactions in journals. These entries are then posted to ledgers, and adjusted entries are made to ensure accuracy. Finally, financial statements are prepared based on the adjusted trial balance. Different accounting standards, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), guide the preparation of these statements, ensuring consistency and comparability.