Financial Reporting and Auditing
Every company based and operating in Iceland must submit annual accounts that comply with statutory accounting rules and disclosures, and which reflect a true and fair view of the company's assets, liabilities, results and financial position. Presentation is modeled on standard EU requirements.
Companies above a certain size that are publicly traded and have subsidiaries are required to prepare consolidated group accounts.
Tax returns are submitted to local tax authorities.
Foreign currency accounting
Corporations registered in Iceland, whose income is mainly derived from foreign sources, can apply to keep their accounts and records in a foreign currency.
Publicly traded companies are allowed to issue their share capital in a foreign currency. Other non-publicly traded limited liability companies whose income is mainly derived from foreign sources are also allowed to issue their share capital in a foreign currency, provided that they meet certain requirements.
Many internationally renowned accounting firms are represented in Iceland. Their staff provides expert advice on accounting and auditing in Iceland and in a broader, global financial environment.
"Doing Business in Iceland", the detailed booklet written by the Invest in Iceland Agency and major accounting firms in Iceland, with assistance from the Internal Revenue Directorate, the Ministry of Industry and Commerce, and other bodies is being revised and will be available shortly.