As of 1 January 2025, Act C of 2000 on Accounting has been amended as follows:
Changes in reporting thresholds
The thresholds for preparing simplified annual financial statements have increased as follows:
- the criterion for balance sheet total increases from HUF 1,200 million to HUF 2,000 million,
- the criterion for annual net revenue increases from HUF 2,400 million to HUF 4,000 million.
The criterion regarding the average number of employees during the fiscal year remains unchanged.
The increase in the threshold for simplified annual financial statements also raises the threshold for preparing a cost calculation policy since entities preparing simplified annual financial statements are not required to maintain such regulations.
OUTSOURCING ACCOUNTING AND BOOKKEEPING
Changes to cost calculation policy requirements
If, in a given fiscal year, the net sales revenue reduced by the cost of goods sold and the value of services rendered exceeds HUF 4 billion, or the total costs based on cost types exceed HUF 2 billion, starting the following year, the cost of self-manufactured goods and services must be determined using post-calculation methods outlined in an internal cost calculation policy.
Criteria for preparing consolidated financial statements
- The thresholds for preparing consolidated financial statements are also increasing: the criterion for the balance sheet total increases from HUF 6,000 million to HUF 10,000 million, and
- the criterion for the annual net revenue increases from HUF 12,000 million to HUF 20,000 million.
The criterion regarding the average number of employees during the fiscal year remains unchanged.
The amendment doubles the threshold for exemption from mandatory audit based on net revenue, raising it from HUF 300 million to HUF 600 million. Consequently, companies with net revenue below HUF 600 million, provided the employment condition is also met, will qualify for exemption.
Changes to companies subject to mandatory audit
The scope of companies subject to mandatory audit is narrowing. Going forward, the net revenue threshold for mandatory audits, averaged over the preceding two financial years, increases from HUF 300 million to HUF 600 million.
Under the new regulation, the audit is not required if both of the following conditions are met:
- the average annual net revenue (converted to one year) of the company in the two financial years preceding the current financial year did not exceed HUF 600 million, and
- the average number of employees of the company in the two financial years preceding the current financial year did not exceed 50 persons.
Income statement
As a result of the introduction of the concept of deferred tax, the income statement has also been modified so that the deferred tax difference must now be considered when determining the after-tax profit for the financial year. The after-tax profit for the financial year is calculated by modifying the pre-tax profit, reduced by the tax liability, in accordance with the (+/-) sign of the deferred tax difference.
The concept of deferred tax was introduced to the Accounting Act by Act LXXXIV of 2023 on supplementary taxes ensuring the global minimum tax level and related amendments of certain tax laws.
Changes to the supplementary notes
As of 2025, companies are no longer required to disclose in the supplementary notes any cash or in-kind donations provided free of charge to nonprofit organizations pursuing public interest activities in environmental, sports, healthcare, social, cultural, or educational fields.
I HAVE A QUESTION REGARDING ACCOUNTING
Failure to meet depositing and disclosure obligations
The amendment allows any third party to initiate judicial review proceedings if a company fails to fulfil its obligations under the Accounting Act to deposit and disclose its financial statements, sustainability reports, as well as reports on corporate income tax information, payments to central budget, or the audit reports.
Selecting and appointing the auditor
Any contractual clause or statement obliging a company’s supreme body to appoint a specific auditor, audit firm, or audit group—or restricting its choice to particular types or groups—is deemed null and void.
