reikningsskilsháttum

Reikningsskilsháttum refers to the accounting principles and methods used by a company or organization to prepare its financial statements. These principles ensure that financial information is presented in a consistent, comparable, and understandable manner. In Iceland, the primary accounting standards are based on International Financial Reporting Standards (IFRS), adapted for Icelandic regulations.

Key aspects of reikningsskilsháttum include the recognition, measurement, presentation, and disclosure of financial information. Recognition refers to the process of recording an item in the financial statements when it meets the definition of an asset, liability, equity, income, or expense. Measurement involves determining the monetary value of these items, often using historical cost or fair value. Presentation dictates how these items are displayed in the financial statements, such as the balance sheet, income statement, and cash flow statement. Disclosure requires companies to provide additional information in the notes to the financial statements to explain the accounting policies used and to give further detail on specific items.

Adherence to established reikningsskilsháttum is crucial for various stakeholders, including investors, creditors, management, and regulatory bodies. It allows for informed decision-making, facilitates business transactions, and promotes transparency in the financial markets. Companies are legally obligated to prepare their financial statements in accordance with these principles, and the statements are often subject to audit by independent accountants to verify their accuracy and compliance.