Årsregnskapsloven

The Årsregnskapsloven, or the Norwegian Accounting Act, is the primary legislation governing financial reporting for companies in Norway. It sets out the requirements for how businesses must prepare and present their annual financial statements. The law aims to ensure that financial information is reliable, comparable, and understandable, serving the interests of various stakeholders including shareholders, creditors, employees, and the public.

The Årsregnskapsloven specifies the structure and content of the annual report, which typically includes a profit and loss statement, a balance sheet, cash flow statements, and notes to the accounts. It also outlines rules regarding the valuation of assets and liabilities, revenue recognition, and the disclosure of important financial information. Different types of companies may have varying reporting obligations based on their size and legal structure, with smaller entities often subject to less stringent requirements.

The Act also addresses accounting principles, such as the accrual basis and the going concern assumption, and mandates the use of generally accepted accounting principles. Furthermore, it details requirements for the auditor's report, which must accompany the annual financial statements for most companies, and specifies the responsibilities of the board of directors and management in relation to financial reporting. Compliance with the Årsregnskapsloven is crucial for Norwegian businesses to maintain transparency and legal standing.