Accounting regulations and standards in Denmark

The accounting rules in Scandinavia are quite similar due to their closely related history and culture. In Denmark, all businesses are required to follow the Danish Financial Statements Act (DFSA), which was last amended in 2015.

The Confederation of Danish Industry is the regulatory body responsible for overseeing accounting practices in Denmark.

When creating accounting reports, intangible assets can be recorded in the balance sheet or as expenses in the profit and loss account, depending on the company's choice. Physically fixed assets must be estimated at their original or production cost. Current assets should be recorded at the lower cost and value of the market. Stocks can be estimated using the weighted average cost or the FIFO method. For more detailed information, you can refer to the Statutory report on corporate governance by Solar.

Companies are required by law to use "good accounting methods" when creating their financial reports. They must also send a copy of their annual report, which includes a profit and loss account and a balance sheet, to the legal authorities of the country.

The trade organization responsible for auditing, accounting, tax, and corporate finance in Denmark is called Foreningen af Statsautoriserede Revisorer - Danske Revisorer (FSR - Danish Auditors). Company audits are compulsory and must follow the generally accepted auditing practice.