tilinpäätöslakista

Tilinpäätöslaki is the Finnish Accounting Act, formally known as Laki kirjanpitolaista (Kirjanpitolaki). This law governs the principles and requirements for financial accounting in Finland. It dictates how businesses and other entities must record, process, and present their financial information. The primary objectives of the Act are to ensure that financial reporting is accurate, reliable, and provides a true and fair view of the entity's financial position and performance.

The Act specifies requirements for bookkeeping, the preparation of financial statements, and the retention of accounting records. It defines the components of annual financial statements, which typically include the income statement, balance sheet, cash flow statement, and notes to the financial statements. The law also sets out rules for the valuation of assets and liabilities, revenue and expense recognition, and the accounting treatment of various financial transactions.

Key provisions of the Tilinpäätöslaki include the obligation for businesses to maintain orderly bookkeeping, the requirement to prepare financial statements annually, and the rules regarding the disclosure of information in the notes to the financial statements. The Act also addresses the responsibilities of company management in ensuring compliance with accounting regulations. It aims to provide transparency and comparability in financial reporting, which is crucial for stakeholders such as investors, creditors, and tax authorities. The law is regularly updated to align with international accounting standards.