Ársreikningar

Ársreikningar is the Icelandic term for financial statements. These are a set of formal records that provide a comprehensive overview of a company's or organization's financial activities and position. Typically, ársreikningar include a balance sheet, an income statement, and a cash flow statement, along with accompanying notes. The balance sheet, or efnahagsreikningur, shows assets, liabilities, and equity at a specific point in time. The income statement, or rekstrarreikningur, reports revenues, expenses, and profits over a period. The cash flow statement, or sjóðstreymisyfirlit, details the movement of cash in and out of the business from operating, investing, and financing activities.

These financial statements are crucial for various stakeholders. Investors use them to assess the profitability and financial health of a company before making investment decisions. Creditors rely on ársreikningar to determine a company's ability to repay loans. Management uses them for internal decision-making, performance evaluation, and strategic planning. Regulatory bodies often require ársreikningar to ensure transparency and compliance with accounting standards. In Iceland, these statements are prepared in accordance with generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS), depending on the size and nature of the entity. The preparation and auditing of ársreikningar are governed by specific Icelandic laws and regulations.