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• Examination of the Net Profit during the transition to IFRS

  Alexandra Szekeres

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  The research examines the impact of the transition to IFRS in the context of companies operating under the Hungarian accounting environment. The focus of the study is on first-time adopters that also prepare their individual financial statements in accordance with IFRS. Based on the descriptive statistical analysis, the average net income is higher under IFRS than under the Hungarian accounting standards for both high and low capital-intensive companies. However, the difference is not significant, especially in the case of companies with low capital intensity. Due to the high variability in the results, extreme values were filtered out, yet the data still did not follow a normal distribution. The Wilcoxon rank-sum test showed p-values above 5% in both clusters, indicating no statistically significant difference between net income figures reported under the two accounting systems. This finding is further supported by the effect size values, which reflect a weak relationship between the variables. Overall, the transition to IFRS does not have a meaningful impact on the net income.