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Proper financial reporting is a cornerstone of business compliance and transparency in Hungary. Governed by the Accounting Act (Act C of 2000 on Accounting), financial statements in Hungary must accurately reflect a company’s operations, financial position, and performance. Businesses are required to follow specific formats and procedures, whether reporting under Hungarian Accounting Law or International Financial Reporting Standards (IFRS).
This article provides a comprehensive overview of Hungary’s financial statement and reporting requirements, mandatory structures, reporting periods, and additional compliance obligations.
Economic entities shall prepare a financial statement – in Hungarian language – on their operation and on their financial position and performance, supported by an accounting system prescribed in Hungarian Accounting Law, following the closing of the books pertaining to the financial year.
The financial statement must give a true and fair view of the holdings of the economic entity and the contents thereof (assets and liabilities), of its financial standing and profitability.
The financial statement can be prepared in accordance with the Hungarian Accounting Law or the International Financial Reporting Standards (IFRS).
There are special rules for e.g. Government agencies, Magyar Nemzeti Bank, credit institutions, financial companies, investment firms and insurance companies, other organizations.
The type of the financial report is specified in accordance with the amount of annual net sales revenues, the balance sheet total, the number of employees, and the limits thereof.
The following types of financial reports shall be applied:
Economic entities keeping double-entry books, with the exceptions set out in below-mentioned, are required to draw up annual accounts and annual reports.
Economic entities keeping double-entry books may prepare a simplified annual account if, on the balance sheet date in two consecutive financial years, two of the following three size-related indices do not exceed the limits indicated below:
From January 1, 2025, the following new rules must be applied for the economic year:
The provisions of above-mentioned may not be applied by public limited companies, parent companies and public-interest entities, and by any economic entity that has been authorized to introduce its securities issued on the stock exchange for trading, or whose authorization is already in progress.
Any enterprise that is not subject to statutory audits shall have the option to prepare its simplified annual account (including the simplified annual accounts of micro-entities) if, on the balance sheet date in two consecutive financial years, two of the following three size-related indices do not exceed the limits indicated below:
The parent company shall not be required to draw up consolidated annual accounts on the financial year if, on the balance sheet date in two consecutive years preceding the current financial year, two of the following three indices do not exceed the following limits:
From January 1, 2025, the following new rules must be applied for the economic year:
When determining the indices, the consolidated figures of the parent company, its subsidiary companies and jointly controlled entities, prior to consolidation shall be taken into consideration. The figures of jointly controlled entities shall be taken into consideration in the percentage of equity interest.
Companies included in the consolidation, other than parent companies, shall be allowed to file a simplified annual account , if able to supply information from its records to the parent company which are deemed necessary for drawing up the consolidated annual account. (There are special rules as well)
Any economic entity that is construed a parent company in its relationship with one or more companies shall prepare both a consolidated annual account and a consolidated annual report.
The Balance Sheet and Income Statements have a mandatory structure according to the Accounting Law.
The standard reporting period is the calendar year, ending on December 31st. Companies may choose a different fiscal year if it better aligns with their business activities
Companies keeping double-entry books and registered in the register of companies shall deposit the annual account or simplified annual account approved by the body entitled thereunto and, in the case of statutory audits of accounting documents together with the independent auditor’s report containing an audit certificate or qualified audit certificate, as well as the decision on the appropriation of the taxed profit (declaration of dividends) by the last day of the fifth month following the balance sheet date of the financial year in question. The annual accounts or simplified annual accounts deposited shall be of the same form and content (text) as the one examined by the auditor.
A parent company shall deposit its consolidated annual account approved by the body entitled thereunto, together with the independent auditor’s report containing an audit certificate or qualified audit certificate, by the last day of the sixth month following the balance sheet date of the consolidated annual account. The consolidated annual account deposited shall be of the same form and content (text) as the one examined by the auditor.
The Hungarian branches of non-resident companies shall deposit the annual account, simplified annual account approved by the non-resident company, together with the independent auditor’s report containing an audit certificate or qualified audit certificate, as well as the decision on the appropriation of the taxed profits (declaration of dividends) by the last day of the fifth month following the balance sheet date of the financial year in question.
All companies keeping double-entry books (including the Hungarian branches of non-resident companies) shall publish their annual account or simplified annual account, and, in the case of statutory audits of accounting documents, together with the independent auditor’s report containing an audit certificate or qualified audit certificate. Companies must file their financial statements in Hungary with the Company Information Service, which is part of the Ministry of Justice. For annual reports and simplified annual reports, the e-report can be uploaded until the last day of the fifth month following the balance sheet date. Failure to publish the e-company report has tax and corporate legal consequences.
The Hungarian branch of a company that is established in a Member State of the European Union shall be exempted from the obligation of deposit, publication and the obligation of audit.
The obligations referred to above-mentioned shall not apply to the Hungarian branch of a non-resident company that is established in a non-Member State of the European Union; however, the legal provisions on the obligations of annual accounts, audit, deposit and publication afforded by the national laws of the home country are in conformity with the relevant regulations of the European Union. A list of such countries shall be published by the minister on the Single Government Portal.
The branches exempted from the obligations (publication, deposit and audit) shall be subject to the obligation of publication and deposit solely with respect to the annual account or consolidated annual account drawn up by the foreign parent company in accordance with laws of their home countries on condition that these accounts have been prepared, audited, published and deposited in harmony with the relevant directives of the European Union.
Branches shall comply with the obligations of publication and deposit in Hungarian language
Businesses operating in Hungary face several challenges related to financial statements and reporting:
These complexities can overwhelm businesses, especially those without in-house expertise or familiarity with Hungarian regulations.
Outsourcing financial reporting provides several advantages, including access to local expertise in Hungarian accounting laws and reporting standards, ensuring timely compliance with deposit and publication deadlines, tailored solutions for managing complex reporting requirements such as consolidated accounts, and reduced administrative burden, allowing businesses to focus on growth.
At Accace, we specialize in simplifying financial reporting for businesses operating in Hungary. Our comprehensive services include:
Let us take the stress out of financial reporting, so you can focus on growing your business. Explore our accounting and reporting services in Hungary and contact us today to learn more!
About Accace
Accace is a proactive consultancy and outsourcing partner who bridges the gap between needs and solutions. Combining smart and streamlined technology with a holistic approach, we provide an all-round care to clients and consider their matters as our own. With over 800 experts and approximately 2,000 customers, we have vast experience with facilitating the smooth operation and growth of small to large-scale, global businesses.
About Accace Circle
Accace operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 60 jurisdictions with more than 7,000 professionals, we support over 80,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 800,000 pay slips globally.
