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Economica

Vol. 16 No. 1-2 (2025)
Articles

Comparative analysis of the first-time application of international financial reporting standards, using the example of two companies

Published:
2025-07-31
DOI Linkhttps://doi.org/10.47282/economica/2025/16/1-2/15488
Author
Dániel Bartha
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pdf (Hungarian)
Keywords
International Accounting Transition Comparasion of accounting system
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Copyright (c) 2025 Dániel Bartha

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This work is licensed under a Creative Commons Attribution 4.0 International License.

How To Cite
Selected Style: APA
Bartha, D. (2025). Comparative analysis of the first-time application of international financial reporting standards, using the example of two companies. Economica, 16(1-2), 107-119. https://doi.org/10.47282/economica/2025/16/1-2/15488
Abstract

In this article I have made a comparative analysis of the first application of International Financial Reporting Standards (IFRSs) from the perspective of two Hungarian companies engaged in financial activities, Budapest Fund Management Ltd. and Fundamenta-Lakáskassza Kft. The aim of the research is to explore the differences between the Hungarian accounting system and IFRS, with a special focus on valuation principles and methods.

The study presents IFRS 1, IAS 1 and IAS 12 and the effects of the transition to IFRS on the financial statements. Of the two companies examined, the changeover resulted in only minimal changes for Budapest Fund Management Ltd., while Fundamenta-Lakáskassza Kft. experienced more significant changes, particularly in the accounting for securities and deferred taxes. The research concludes that IFRS-compliant reporting provides more detailed and transparent information to market participants. However, the transition to IFRS can impose a significant administrative and financial burden on companies, especially smaller companies. The author suggests further convergence of the Hungarian accounting system towards IFRS, taking into account cost-benefit ratios.

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