News Flash - Accace ... 2015/08/28  · News Flash I Accace Hungary I Changes in the...

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  • News Flash August, 2015

    Changes in the Accounting Act in

    Hungary from 2016

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

    Changes in the Accounting Act in Hungary from 2016

    The Hungarian Parliament has adopted Bill T/4852 during its plenary session on 23 th 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

    1 st

    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

    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 statement’s pre-tax profit line will

    correlate with the profit on ordinary activities.

    Dividend payments

    Dividends have to be displayed in the

    accounting records with the date of the decision,

    not the date of the tax year’s report (income

    statement) when it was approved. Accordingly,

    retain profit line is cancelled and the income

    statement’s last income category will be profit

    after taxes (meaning it will include only profit

    after taxes). The previous business year’s

    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 capital’s amount after the

    recognition(payout) of dividends, profit-sharing

    and yields on interest-bearing securities.

    Significant ownership share

    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 company’s activities, this

    has to be displayed in a new row at financial

    investments.

    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 year’s

    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.

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  • 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.

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

    Contact

    István Nemecz

    Managing Director

    E-Mail: [email protected]

    Phone: +36 14123535

    About Accace

    With more than 250 professionals and branches in 7 countries, Accace counts as one of the leading

    outsourcing and consultancy services providers in Central and Eastern Europe. During past years,

    while having more than 1400 international companies as customers, Accace set in motion its strategic

    expansion outside CEE to become a provider with truly global reach.

    Accace offices are located in Czech Republic, Hungary, Romania, Slovakia, Poland, Ukraine and

    Germany. Locations in other European countries and globally are covered via Accace’s trusted partners

    network.

    More about us on www.accace.com

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