IFRS home

Update information and useful publications on the adoption of IFRS and information relating to its application

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Preparing IFRS financial statements

Have you encountered any of the following situations?

You are required or have the option to prepare IFRS-based financial statements but do not know exactly how the transition may affect:

  • the financial statements,
  • key performance indicators,
  •  tax liabilities,
  • the allowable dividends,
  •  accounting systems and processes,
  • other areas of everyday operations (e.g. human resources).

Management needs assistance in the preparation of the first IFRS financial statements:

  • due to a lack of resources,
  • due to a lack of specialist  IFRS expertise,
  • in  selecting the most suitable mandatory exceptions and optional exemptions under IFRS 1 and assessing their impacts,
  • in connection with IFRS disclosures.

You need to prepare an IFRS-based reporting package.

We can assist you with the following:

  • Conduct a complex accounting impact assessment on the application of IFRS (assess the impacts of the transition to IFRS and decisions required in the transition strategy)
  • Analyse the taxation implications of the transition to IFRS
  • Consult on the practical application of accounting policies
  • Establish an appropriate IFRS accounting policy or revision of the company’s existing accounting policy
  • Assess quantitative and qualitative impacts of changes in accounting policies
  • Assist in the preparation of the first IFRS financial statements
  • Analyse how implementing IFRS affects business processes and systems
  • Train staff directly and indirectly involved in the transition to IFRS

Please contact Gábor Halmosi, senior manager, for further information on our services.

Accounting Advisory Services

In today’s rapidly changing economic, legal and tax environment, accountants are finding an increasing number of complex accounting issues under either (or both) the Hungarian Accounting Act or IFRS (International Financial Reporting Standards) that require extensive expertise.

Have you faced any of the following questions?

  • How to account for the acquisition of new portfolios or business lines?
  • Is it possible to maintain the company’s books in the currency determined by the group?
  • How to account for leasing arrangements (in the case of finance and/or operating leases)?
  • Is it possible to include leases in non-lease agreements?
  • When and how to account for financial support provided/received?
  • When is it necessary to recognise a provision and in which cases is it optional to record a provision?
  • How to treat a transformation from an accounting perspective? How will a transformation affect the financial statements?
  • How to account for discounts under the Hungarian Accounting Act and under IFRS? What impact could it have on revenues?

We can assist you with the following:

  • Establish the accounting policy most suited for the company based on its activities, review or update the company’s existing accounting policy;
  • Consultation on the accounting of complex transactions based on industry practice;
  • Accounting support including verbal discussion of accounting issues, which provides an opportunity to clarify issues in a flexible manner;
  • Present possible accounting treatments of specific transactions in a written advisory letter.

Please contact Miklós Novák, senior manager, for further information on our services.

Deferred tax-related services

In many cases, accounting records need modification due to errors arising from the accounting for income tax, which often causes material errors in financial statements. The changing global operational environment and recent amendments to the Hungarian taxation regulations have resulted in an increased need to verify the increasingly complex calculation of deferred tax balances.

What sort of questions might arise when calculating deferred tax?

  • How is deferred tax calculated using the balance sheet method?
  • What sort of practical problems might we face when calculating deferred tax for the first time?
  • Which tax rate should be applied when calculating deferred tax?
  • How do you verify that all items have been taken into consideration?
  • When is it possible to recognise deductible temporary difference and/or loss carry-forward as a deferred tax asset?
  • How is the effective tax rate calculated?

We can assist you with the following:

  • Reviewing tax balances
  • Identifying temporary differences
  • Reviewing the method used for the calculation of deferred tax
  • Consulting on specific questions related to deferred tax
  • Providing IT support for the calculation of deferred tax
  • Calculating deferred tax and discussing practical issues in a workshop

Please contact Roland Balogh, manager for further information on our services.

Implementation of new standards

Applying newly issued International Financial Reporting Standards may result in substantial changes from existing accounting practices.

The adoption of IFRS 15 ‘Revenue from contracts with customers’ issued on 28 May 2014, IFRS 9 ‘Financial instruments’ issued on 24 July 2014 and IFRS 16 ‘Leases’ issued on 13 January 2016,  may place a significant burden on preparers of IFRS financial statements.

The implementation of new standards represents a real challenge not only for finance teams but also impacts many areas across organisations.

Have you considered any of the following questions?

  • Which new standards do I need to implement?
  • How will the new standard(s) affect existing bookkeeping and accounting processes?
  • Do I need to adjust the sub-ledgers to comply with the new accounting requirements?
  • Do the current accounting and ERP systems require development?
  • How will the new standard affect the company’s key performance indicators?
  • How will the new standard affect the company’s business activities?

We can assist you with the following:

  • Conducting an impact assessment, based on the company’s transactions, of how the accounting treatment is expected to change;
  • Consulting on how to account for significant transactions based on industry practice;
  • Assessing the company’s planned transactions, identifying the most relevant circumstances that determine the accounting treatment, and assisting the company by providing an impact assessment of any changes in these circumstances;
  • Assisting in the analysis of data generated by ERP systems and implementing solutions that comply with the new standards.

Please contact Gergely Németh, manager for further information on our services.

Valuation services

Implementation of International Financial Reporting Standards (IFRS) may result in significant changes in accounting processes and an increased number of assets that need to be valuated on an annual basis.

IFRS may also modify the accounting treatment for acquisitions - all (tangible and intangible) assets obtained by means of an acquisition or combination must be recognised at their current market value (valid at the date of acquisition) in the acquirer’s balance sheet, and amortised according to their useful lives. Any goodwill arising from the acquisition must be tested for impairment annually.

Many financial assets and instruments, insurance contracts and share options, among others assets and liabilities must also be valued under IFRS. Please note that share options represent adjusting items in the profit and loss statement. 

The valuation of these assets and liabilities is often complex, requiring special valuation and technical skills to understand and interpret the specific accounting consequences of the valuation in light of a broader business environment.

PwC’s valuation experts have extensive experience in technical and financial consulting and provide complex advisory services in co-operation with our accounting experts.

Please contact Eszter Sager, senior manager, for further information on our services.


In today's highly digitized world, full or partial IT support is indispensable in many areas. IT solutions are also required for rapid, accurate and efficient execution of accounting tasks and financial statement preparation.

What challenges might you face as an accounting professional?

  1. Are you required to prepare financial statements or internal reports for several companies almost at the same time, and within a short deadline?
  2. Are you required to prepare internal reports on a monthly or quarterly basis?
  3. Is the preparation of financial statements and reports time-consuming?
  4. Do financial statements or reports need to be prepared manually?
  5. Do you need to prepare separate and consolidated financial statements for a group with a large number of companies?
  6. Does the group lack a single consolidation system?
  7. Is corporate income tax calculated and declared manually?
  8. Is deferred tax calculated manually?

We can assist you with the following:

PwC has developed specific IT tools for address many of the above accounting issues:

MyReporting IT tool:

  • automatically generates financial statements or other reports
  • suitable for use in any accounting framework
  • enables rapid, accurate and efficient preparation of financial statements
  • requires no IT development
  • easy to install and deploy
  • easy to use and learn
  • provides a comparison of Excel spreadsheets

eConsolidation IT tool:

  • automates the most frequent and most time-consuming consolidation tasks, such as
    • adding or deleting subsidiaries,
    • summarising data,
    • translating foreign-currency items of foreign subsidiaries,
    • reconciling intra-group transactions,
    • handling modifications
  • provides a comparison of Excel spreadsheets
  • suitable for combining with MyReporting, speeding up preparation of consolidated financial statements
  • provides a structured and uniform consolidation package sample
  • requires no IT development
  • easy to install and deploy

Please contact Péter Heronyányi, manager, for further information on our services.

European Single Electronic Format (ESEF)

The European Securities and Markets Authority (ESMA) has issued rules for the European Single Electronic Format (ESEF). The new regulation was published in the Official Journal of the European Union 29 May 2019. EU-regulated listed companies must produce their annual reports in the eXtensible HyperText Markup Language (XHTML) for reporting periods beginning on or after 1 January 2020 and International Financial Reporting Standards (IFRS) reporters must use Inline XBRL (iXBRL) to make the consolidated data in the primary financial statements machine-readable.

Companies will need to create tags if they have entity-specific disclosures, for which tags are not available in the ESEF taxonomy. New technical functionality called ‘anchoring’ has been devised to make it easier to understand such XBRL extensions. You can learn more by watching our anchoring webcast. ESEF is already a hot topic for preparers of annual reports and may disrupt the supplier landscape and your current processes.

Further information


IFRS adoption - FAQ

1. What does the IFRS mean?

2. What does the „IFRS adopted by EU” expression mean?

3. How can I reach the standards?

4. Are standards also available in Hungarian?

5. How can I get information about the latest IFRS news and changes?

6. Which standards are applicable to prepare the financial statements if I decide to adopt the IFRS?

7. What are the most significant differences between financial statements prepared under the Hungarian Accounting Standards and under IFRS?

8. Are there any specific rules for a company preparing its financial statements under IFRS for the first time?

9. Which act stipulates the detailed regulations of the IFRS adoption?

10. Which companies and when have the option to adopt IFRS?

11. For which companies is the IFRS adoption mandatory?

12. If the parent company is listed, is the IFRS adoption mandatory for the Hungarian subsidiary?

13. What are the pros for IFRS adoption?

14. Who is authorized to decide about the IFRS adoption at a company?

15. What steps need to be taken prior to the adoption? What other aspects need to be considered?

16. Which areas are affected by the IFRS transition?

17. What are the conditions of the IFRS adoption?

18. Is the registered auditor of the company entitled to audit the IFRS adoption?

19. How should the company announce the IFRS transition?

20. Is it mandatory to employ an IFRS certified accountant to prepare financial statements under IFRS?

21. What does the IFRS certified mean?

22. How can I get the IFRS qualification?

23. What is the date of the transition?

24. Should I prepare three balance sheets if my company adopts the IFRS for the first time?

25. Which standards are applicable to prepare the first IFRS financial statements?

26. When should I start the preparation for the adoption?

27. What are the steps of the IFRS adoption?

28. Can I use the numbers of the IFRS reporting package prepared on a regular basis in my first separate IFRS financial statements?

29. Is it enough to disclose additional information to the package to have a full set of IFRS financial statements?

30. Are there any significant differences between the separate financial statements prepared under the Hungarian Accounting Standards and IFRS?

31. If I adopt IFRS, will I stay under the regulation of the Act C of 2000 on accounting?

32. If I adopt IFRS, is it possible to account for in accordance with the Hungarian accounting rules and at year end record only the IFRS adjustments?

33. Beside the disclosure requirements of the IFRS, are there any additional obligations relating to the Hungarian rules of the adoption?

34. What are the disclosure requirements for a first time adopter?

35. Is it mandatory for the IFRS adopters to prepare a business report in accordance with the Hungarian accounting rules?

36. As part of the IFRS accounting policy, shall the other policies being mandatory in accordance with the Act on accounting (eg.: the internal regulations relating to the costing system; cash handling policy, the regulations and procedures for taking and keeping inventory of assets and liabilities; the regulations for the valuation of assets and liabilities) be prepared as well?

37. When is it possible to transition to the annual accounts in accordance with the Hungarian accounting rules from IFRS?

38. When becomes the transition (return from IFRS) mandatory?

39. What happens if a company gets under voluntary or compulsory liquidation?

40. What kind of taxes are affected by the IFRS transition?

41. How shall the corporate income tax base be calculated if the Company adopts IFRS? Regardless the transition, shall the accounts be recorded in accordance with the Hungarian accounting rules in parallel?

42. Will the Tax authorities inspect the accounts in accordance with IFRS?

43. What does the transition difference mean?

44. What are the opportunities in case of the tax obligations that relates to the transition difference?

45. What are the typical tax base adjustments in case of the corporate income tax?

46. What are the typical tax base adjustments in case of the local tax?

47. What does the minimum tax mean?

48. What does the minimum tax advance mean?

49. What kind of data shall be reported for the Tax authority in case of IFRS transition?

50. Shall the statistical data be reported based on the IFRS accounts?

Contact us

Gábor Balázs

Gábor Balázs

Partner, PwC Hungary

Enikő Könczöl

Enikő Könczöl

Partner, PwC Hungary

Miklós Novák

Miklós Novák

Director, PwC Hungary

Gábor Halmosi

Gábor Halmosi

Partner, PwC Hungary

Roland Balogh

Roland Balogh

Director, PwC Hungary

Péter Heronyányi

Péter Heronyányi

Director, PwC Hungary

Emőke Szántó-Kapornay

Emőke Szántó-Kapornay

Director, PwC Hungary

Lívia Márkus-Rácz

Lívia Márkus-Rácz

Senior Manager, PwC Hungary

Zsófia Ratku

Zsófia Ratku

Manager, PwC Hungary

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