Annual report
An annual report is a statement from the board and general manager that provides information about the development of the company and the prospects for future operations.
Who needs to submit the annual report?
Companies with an accounting obligation, that are not classified as "small companies" must prepare an annual report. If you have an enterprise subject to the accounting obligation which, under the Accounting Act, is covered by the definition of "small enterprise", you will not need to prepare an annual report. One of the criteria for being considered a small company is that the sales revenue is less than NOK 168 million. Most companies covered by the accounting obligation will be considered small in terms of accounting and need not to submit an annual report.
The Limited Liability Companies Act on annual accounts and annual reports (in Norwegian only)
The contents of the annual report
The annual report is a report from the board of directors and the general manager which gives an account of developments in the business and the outlook for the enterprise as a going concern. The Accounting Act gives detailed information about the required contents of annual reports.
Sustainability reporting for certain enterprises will take effect from the financial year 2024. The sustainability reporti will be included as part of the annual report and will require auditor certification. Although initially only large companies are required to report, smaller companies will also be affected as they are part of the value chain that the large companies are obligated to report on.
To ensure comparable reporting across enterprises, sectors, and countries, a requirement has been introduced for companies to report in accordance with the European Sustainability Reporting Standards (ESRS). These standards contain specific requirements for targets and indicators.
The first set of general standards, which large enterprises must follow, was adopted in July 2023. The European standards will be implemented in Norwegian regulations.
Enterprises subject to sustainability reporting obligations must provide information that shows both how they impact sustainability matters and how sustainability affects them, known as double materiality. To determine which information is relevant, companies must assess what is material for their stakeholders.
Accounting Act on annual reports and sustainability reporting (in Norwegian only)
The changes in the Accounting Act take effect from financial years starting on 1 January 2024 or later, with exceptions as specified in numbers 2 to 7 of the transitional rules.
Transitional rules (in Norwegian only)
Signatures
In the case of businesses which are required to prepare accounts and which have a board, all board members must sign the annual accounts. If the business has a CEO/general manager, he or she must also sign the documents. Signing in Altinn fulfills the signature requirement. If the business has neither a board nor a CEO/general manager, the partners or members must sign. If one of the signees have objections to the annual accounts or annual report, he or she should sign with a statement of their reservations and provide a more detailed statement in the annual report. The annual report must be approved by the general meeting or a corresponding body no later than six months after the end of the financial year.
The Accounting Act on the signing of the annual accounts (in Norwegian only)
Submitting annual reports
If your enterprise is required to produce an Annual Report, you need to submit this to the Register of Company Accounts along with the annual accounts.
Norwegian Accounting Standards Board - NRS 16 - Annual reports (in Norwegian only)
The Brønnøysund Register Centre on the submission of annual accounts
