Annual Financial Statements

An annual financial statement is a report that presents an entity’s financial performance and financial position at the end of a financial year.It is published once a year and covers a single financial year.

Main Components of an Annual Financial Statement

Income Statement

The income statement shows the entity’s income and expenses during the reporting period.The result is either a profit or a loss.

Balance Sheet

The balance sheet shows the entity’s assets, liabilities, and equity on a specific date.The basic accounting equation is:Assets = Liabilities + Equity

Cash Flow Statement

The cash flow statement shows movements in cash and cash equivalents during the reporting period.Cash flows are divided into:

• operating activities,

• investing activities,

• financing activities.

Notes to the Financial Statements

The notes provide additional information about items in the financial statements.They include details on:

• accounting policies,

• assumptions and estimates used in preparing the financial statements.

Annual Financial Statements of Public Sector Entities

Annual financial statements of Icelandic public sector entities are available on the Annual Financial Statements of Public Entities website.