The IFRS is a set of standards for the preparation of financial statements, which is accepted in more than 100 countries around the world. What competitive advantages does the introduction of the IFRS mean to you in comparison with your competitors?
As far as the legal background is concerned: under the Accountancy Act, certain economic operators are required, while others may choose to fulfil the reporting obligations according to the International Financial Reporting Standards instead of the Hungarian accounting rules. The introduction of the IFRS is subject to several conditions, which are prescribed by accounting and tax laws.
As a result of financial statements prepared after the introduction of the IFRS, your company will become more attractive internationally to foreign investors and partners, since the data in the financial statements are more comparable, transparent and easier to understand. This way, from the perspective of your foreign partner, the risks arising from the investment and from the lack of information in the business relationship are significantly reduced.
Generally speaking, a financial statement prepared after the introduction of IFRS contains more detailed and more relevant information from a business and financial point of view than those prepared according to the traditional Hungarian standards. As a result, it is more informative to both the management and the owners; in other words, it facilitates your activities significantly and makes them more effective.
The introduction of the IFRS brings a fundamentally different approach than the accounting principles previously used. You can also achieve significant taxation and accounting advantages if you consult without our expert team still before the transition on the manner in which switching over should be implemented, the steps to be taken, the necessary developments to the internal information and accounting system, and the taxation effects.
The transition requires considerable professional experience and resources, which we are able to provide on the basis of our prior practice. In the course of the transition process, the data need to be reviewed not only for the current year but also in respect of the past, and detailed information must be disclosed in the statement.