Danish Financial Statements Act (Årsregnskabsloven)

What it means

The Årsregnskabsloven (ÅRL), in English the Danish Financial Statements Act, is the statute that sets the legal requirements for preparing, presenting, auditing and filing the annual reports of Danish commercial enterprises. It is administered by Erhvervsstyrelsen (the Danish Business Authority).

The Act is built as a “building-block” system across four reporting classes (A–D): the smallest entities follow the lightest requirements, and recognition, measurement and disclosure obligations increase with size and public interest.

Why it matters

It is the default reporting framework for most Danish companies: what people mean by Danish GAAP. It was amended by Act no. 480 of 2 May 2024 to raise the EU size thresholds and to bring CSRD sustainability reporting into Danish law.

How it relates to nearby concepts

Årsregnskabsloven is the core of Danish GAAP, defines the reporting classes, and sits alongside IFRS, which listed companies must use for their consolidated statements and others may adopt voluntarily.

Common misunderstandings

• It is the same as “Danish GAAP” in full: The Act is the core statute; Danish GAAP also includes Danish accounting standards and practice built on top of it.