Accounts - Denmark

Updated 07/2012

Legal requirements

The Danish Financial Statements Act, the Bookkeeping Act and related statutory orders and guides can be found on the Danish Business Authority's website.

The Danish Business Authority

The Financial Statements Act lays down the provisions that apply to annual reports, including the rules on preparing and submitting them.

The Financial Statements Act

The Bookkeeping Act sets out requirements for bookkeeping and storage of accounting materials by companies. All commercial activities covered by the Financial Statements Act are also covered by the Bookkeeping Act.

The Book Keeping Act

Accounting rules

Bookkeeping

All commercial activities covered by the Financial Statements Act are also covered by the Bookkeeping Act. The company must prepare its accounts in accordance with good accounting practice, taking into consideration the nature and scope of the business.

The Bookkeeping Act stipulates that financial records must be stored in Denmark or another Nordic country for five years.

If you are obliged or choose to submit green accounts, you must first register with the Danish Business Authority. You can find a list of companies required to submit green accounts in the related statutory order.

Auditing

Statutory annual accounts must essentially be audited by an approved auditor. However, very small companies are exempt. There are a number of conditions that the company must fulfil before the audit can be dispensed with.

Companies that do not exceed two of the following limits for two consecutive financial years may dispense with the audit:

a balance sheet total of DKK 1.5 million,
net turnover of DKK 3 million,
an average of 12 full-time employees during the financial year.

Administrative procedures

Annual accounts

The Danish Business Authority administers The Financial Statements Act and a number of statutory orders. The Act states that companies must submit their annual reports to the Agency no more than five months after the end of their financial year. The Danish Business Authority ensures that the Financial Statements Act is complied with.

Annual report requirements

Retention and submission of documents

Not all companies have to submit and publish an annual report. However, the following are generally obliged to do so:

public and private limited companies;
other companies with limited liability;
partnerships where partners are personally liable;
limited partnerships.

Sole traders, etc. can voluntarily choose to produce an annual report.

The requirements for annual reports vary according to the size of the companies. The requirements for annual reports vary according to the size of the companies.

Statutory annual reports must be sent to the Danish Business Authority no later than 5 months after the close of the financial year (for listed companies and public limited companies: no later than 4 months after the close of the financial year).

Companies may submit their accounts electronically.

Digital accounts

Businesses can complete all administrative procedures through the Virk.dk portal.

Virk.dk

Auditing, disclosure and publication

Statutory annual accounts should generally be audited by a registered public accountant or a chartered accountant. However, very small companies are exempt.

The Danish Business Authority publishes the submitted annual reports on its website. Anyone can use this website to request a copy of the annual accounts, for a fee.

The Danish Business Authority's Central Business Register

In addition, anyone can use the Agency's website to find a summary of all auditors who are approved by the Agency, and who can therefore provide information about annual accounts, for example.

Search for approved auditors

Resources

The Danish Business Authority has prepared accounting guidelines.

The Danish Business Authority's accounting guidelines

Check also the legislation on this topic in:

Accounts - Denmark