Exploring corporate governance and accounting practices in Denmark: An overview

In Denmark, people usually pay their taxes according to the calendar year, but in this regard the law gives them freedom and they can choose a different 12-month period if they wish. Accounting rules are quite similar among Scandinavian countries due to their shared history and culture. In Denmark, all companies must comply with the Danish Financial Statements Act (DFSA), which was updated in 2015. The Confederation of Danish Industry is responsible for overseeing accounting practices.

When companies make their financial reports, they can choose to record intangible assets, like ideas or patents, either in their balance sheets or as expenses in their profit and loss accounts. Physical assets, like buildings or equipment, have to be estimated at their original or production cost. Current assets, like cash or inventory, have to be valued at the lower cost and market value. Stocks can be estimated using the weighted average cost or FIFO method.

Companies must use "good accounting methods" and send an annual report, which includes an income statement and balance sheet, to legal authorities. Foreningen af Statsautoriserede Revisorer - Danske Revisorer (FSR - Danish Auditors) is the organization responsible for auditing, accounting, taxation and corporate finance in Denmark. Companies must undergo audits in accordance with generally accepted auditing practice.