News Flash

August, 2015

Changes in the Accounting Act in

Hungary from 2016

News Flash I Accace Hungary I Changes in the Accounting Act in Hungary from 2016

Changes in the Accounting Act in Hungary from 2016

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The Hungarian Parliament has adopted Bill T/4852 during its plenary session on 23 June 2015 which will
modify Act C of 2000 on Accounting and other financial acts. The legislators were focusing on
harmonizing the Hungarian law with EU directives and IFRS standards the law will enter into force on
st
1 January 2016.
We have emphasized the major amendments in our current newsletter:

Extraordinary items

Dividend payments

Significant share of ownership

Increased value limits

Supplementary Notes

Extraordinary items

Significant ownership share

Statements will not include extraordinary items

in the same form as they did before they need
to be among the income and expenditures of
financial transactions. For this reason the
income statements pre-tax profit line will
correlate with the profit on ordinary activities.

In addition to these changes a new type of

ownership is introduced: significant ownership
share is used when ownership exceeds 20
percent in other businesses capital. This can be
in the form of securities or other rights. The
purpose of significant ownership share has to be
the contribution to the companys activities, this
has to be displayed in a new row at financial
investments.

Dividend payments
Dividends have to be displayed in the
accounting records with the date of the decision,
not the date of the tax years report (income
statement) when it was approved. Accordingly,
retain profit line is cancelled and the income
statements last income category will be profit
after taxes (meaning it will include only profit
after taxes). The previous business years
available accumulated profit reserve
supplemented with the after-tax profit can only
be paid out as dividends, profit-sharing and the
yields on interest-bearing securities if the equity
amount decreased by the tied-up reserve and
positive valuation reserve will not drop under the
subscribed capitals amount after the
recognition(payout) of dividends, profit-sharing
and yields on interest-bearing securities.

Increased value limits

In order to reduce the administrative duties of
companies, the value limits of annual financial
statements (simplified and consolidated) have
been raised in accordance with EU directives.
Current value limits will be modified as follows:
balance sheet total is raised from this years
HUF 500 million to HUF 1,200 billion, the limit
for revenue changes from HUF 1 billion to HUF
2,4 billion. The average employee headcount
remains the same, it will be 50 people as
previously.

News Flash I Accace Hungary I Changes in the Accounting Act in Hungary from 2016

Supplementary Notes
Due to the amendment, the Supplementary
Notes will have to include the type and amount
of income and expenses of extraordinary
amount or occurrence as described in the
accounting policy. Furthermore, return
calculations of financial investments need to be

demonstrated. Another requirement is to include

branches, and average statistical headcount:
wage costs and payroll taxes need to be shown
in a breakdown table by staff groups. It is
sufficient to include employees average
statistical headcount in the simplified annual
financial statement.

Should you have more questions regarding the changes of Act C of 2000 on Accounting and other
financial acts, our team of experts will gladly be of your help.

Disclaimer
Please note that our publications have been prepared for general guidance on the matter and do not represent a
customized professional advice. Furthermore, because the legislation is changing continuously, some of the
information may have been modified after the publication has been released. Accace does not take any responsibility
and is not liable for any potential risks or damages caused by taking actions based on the information provided
herein.

News Flash I Accace Hungary I Changes in the Accounting Act in Hungary from 2016

Contact
Istvn Nemecz
Managing Director
E-Mail: Istvan.Nemecz@accace.com
Phone: +36 14123535

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