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- Title
Classification of the Hungarian accounting system.
- Authors
Takáts, Gyöngyvér
- Abstract
The paper presents the most important aspects of the development of the Hungarian accounting system up to 2014. It is evidence of significant previous research classifying the Hungarian accounting system into the Continental European model. It also confims the fact that the Accounting Act is an exact copy" of the Fourth Directive with its detailed, strictly bookkeeping descriptions, without definitions of elements of financial statements, with a wide range of several provisions and which is strongly influenced by tax rules. As is seen from a literature review the taxation requirements also dominate the audit proces. IFRS are obliged to be used only by companies listed on the stock exchange of the EU for the preparation of their consolidated financial reports. Even if the Hungarian accounting profession declares that the regulations of the Accounting Act are in line with IFRS, the real influence on the regulations cannot be observed. All of this means that the Hungarian accounting system needs fundamental changes concerning not only accounting regulation but also the attitude of the accounting profession which is very much under state pressure. Obviously, as can be seen from this paper, there cannot ever be a shift into a kind of Anglo-Saxon accounting system. But more flexibility, independence from the tax rules, less government preassure would obviously increase the effectiveness of the accounting system which could meet the needs of a market economy to a greater extent. The paper includes a classification test of Gray's cultural influence theory on the development of the Hungarian accounting system. It is claimed that the social value system is strong enough to point out a potential way of development and it is suggested that further examination be carried out.
- Subjects
HUNGARY; ACCOUNTING; BUSINESS enterprises; SOCIOCULTURAL factors; CAPITAL market
- Publication
Zeszyty Teoretyczne Rachunkowości, 2014, Vol 78, Issue 134, p197
- ISSN
1641-4381
- Publication type
Article