ÅRL

Årsredovisningslagen, abbreviated ÅRL, is the Swedish Annual Accounts Act. It provides the framework for the preparation, presentation, and disclosure of annual reports and, where applicable, consolidated financial statements by Swedish companies and corporate groups. The act applies to most limited liability companies (aktiebolag) and other entities required to prepare annual accounts, and it sets requirements that vary with the size and form of the entity.

The core requirements concern the content and structure of the annual report. An annual report generally must include an income statement, a balance sheet, a statement of changes in equity, and notes. The management report (förvaltningsberättelse) should give a fair review of the business and describe significant events, risks, and later developments. The act also prescribes the accounting principles to be used, including how items are measured and what must be disclosed. For groups, consolidated accounts must be prepared when required, with publicly listed groups typically using IFRS for their consolidated statements, while ÅRL rules apply to many non-listed groups.

ÅRL interacts with other Swedish accounting and corporate legislation, notably the Bokföringslagen (Bookkeeping Act) and EU accounting directives. Compliance is monitored by authorities such as Bolagsverket, and non-compliance can affect the validity of a company’s financial reporting and registration.

See also: IFRS, Bokföringslagen, corporate governance disclosures.