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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