ársreikningalaga

Ársreikningalaga, or the Annual Accounts Act, is a fundamental piece of Icelandic legislation governing the preparation and presentation of financial statements for companies and other entities operating in Iceland. Its primary purpose is to ensure transparency, comparability, and reliability in financial reporting, thereby protecting stakeholders such as investors, creditors, and the public.

The act mandates that all eligible entities must prepare annual financial statements, which typically include a balance sheet, an income statement, a cash flow statement, and notes to the accounts. These statements provide a comprehensive overview of an entity's financial position, performance, and cash flows over a fiscal year. The specific requirements for content and format are detailed within the act, often referencing international accounting standards.

Key provisions of Ársreikningalaga include rules on accounting principles, valuation methods, disclosure requirements, and the auditor's role. It also specifies deadlines for submission and publication of financial statements. The act aims to harmonize Icelandic accounting practices with those in other European Economic Area countries, facilitating cross-border investment and business operations. Enforcement and oversight are typically handled by relevant regulatory bodies.