Accounting and accounting rules in Norway

Accounting Rules

Tax Year

The fiscal year begins on 1 January and ends on 31 December of the same year. A different financial year can be chosen if the parent company or the head office outside of Norway follows a non-calendar fiscal year.

Accounting Standards

Norwegian entities with securities listed on a regulated market must prepare consolidated financial statements based on IFRS. The separate (standalone) financial statement does not have to be based on IFRS (except for certain financial service and insurance entities with separate regulations mainly based on IFRS), but may be prepared based on Norwegian GAAP or a simplified version of IFRS (mainly involving reduced disclosure requirements and certain exemptions from the recognition and measurement requirements related to intragroup transactions). However, if the entity does not have any subsidiaries/affiliates (i.e. consolidated statements are not prepared), the entity (company) financial statement must be prepared according to IFRS.

SMEs have the option to choose between standards developed by the Ministry of Finance and IFRS Standards as adopted by the EU. Full adoption of IFRS Standards for SMEs, initially aimed by the Norwegian Ministry of Finance, is currently put on hold.

Accounting Regulation Bodies

The Norwegian Institute of Public Accountants
The Financial Supervisory Authority of Norway
Ministry of Finance of Norway

Accounting Reports

Annual report, income statement, balance sheet, note to the accounts, cash flow statement (not for smaller companies) and auditor report (if an obligation to audit applies)

Publication Requirements

According to the Accounting Act, all limited liability companies have the duty to submit their annual accounts, the director's and the auditor's reports within one month after being adopted by the annual general meeting. To be published, the annual report must be deposited in the Register of Company Accounts. Branches of foreign enterprises also must file a copy of the entity’s annual accounts, the director’s report and the auditor’s report (for the enterprise of which the branch is a part). These documents are public documents.

Professional Accountancy Bodies

The Norwegian Institute of Public Accountants
The Institute of Internal Auditors Norway

Certification and Auditing

Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact the Financial Supervisory Authority of Norway. Norwegian companies with operating income of less than NOK 5 million, a balance sheet total of less than NOK 20 million and an average of less than 10 man-labor years, may choose not to have the financial statement audited.

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