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Accounting and accounting rules in Iceland

Accounting Rules

Tax Year
The fiscal year begins on 1 January and ends on 31 December of the same year.
Accounting Standards
As a European Economic Area (EEA) member, Iceland applies the European IAS/IFRS regulations.
Accounting Regulation Bodies
Icelandic Ministry of Finance.
Accounting Reports
The annual report must contain a profit and loss account, a balance sheet and an annual report.
Publication Requirements
The Law refers to the notion of "good accounting method" as regards the methods of companies for the elaboration of financial statements.
All capital companies have to send a copy of their annual report to the legal authorities of the country. This annual report must contain a profit and loss account, a balance sheet and an annual report.
The report must be in Icelandic, Danish or English. However, companies registered in Iceland, whose income mainly comes from foreign sources, can present a report in a foreign currency and language.
Professional Accountancy Bodies
The Institute of State Authorized Public Accountants in Iceland
Certification and Auditing
Every limited company in Iceland is required to elect an auditor or inspector and have its annual accounts audited. For public limited companies, a state-authorized public accountant must perform a full-scale audit. Publicly listed companies must elect two auditors, one of whom must be a state-authorized public accountant.
You can contact an external auditor: Ernst & Young, Deloitte, KPMG and PricewaterhouseCoopers.
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Latest Update: April 2022