Financial year (pārskata gads)
In Latvian: Pārskata gads
The financial year (pārskata gads) is the 12-month period for which an undertaking prepares its annual report. It usually matches the calendar year, but the articles of association may set a different start and end.
A new company first financial year may be shorter or longer than 12 months but no longer than 18. The financial year may be changed, with the reason given in the notes, and the changed year may not exceed 12 months.
It may also be shorter than 12 months when the company is reorganised or winds up. For associations, foundations, trade unions and religious organisations it always matches the calendar year.
The last day of the financial year is the balance sheet date, from which the filing deadlines run. Tax periods, such as a VAT month or quarter, are a separate concept.
Example
SIA "Ozols" was founded on 1 July 2025 and its financial year follows the calendar year. Its first financial year may end on 31 December 2025 (six months) or on 31 December 2026 (18 months).
Legal basis
- Accounting Law, Section 24 likumi.lv
- Accounting Law, Section 26 likumi.lv
- Latvian National Terminology Portal: pārskata gads termini.gov.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.