Application (introduction) of IFRS standards
The application of IFRS standards provides an opportunity to make accounting processes more efficient and simplified, while avoiding dual recording.
Benefits
The introduction of IFRS standards can completely replace local accounting principles in some industries. To avoid surprises, it is advisable to begin preparations as soon as possible, as, for example, it will be mandatory for listed companies to adopt IFRS starting in 2017.
Potential benefits:
- For companies within international groups, the introduction of IFRS can lead to significant cost savings, primarily reflected in the reduction of administrative burdens on the organization.
- Maintaining competitiveness is significantly supported when companies prepare their financial statements according to international standards, making them more attractive to foreign investors.
- For financial institutions, the application of IFRS is important due to the common European supervision. Many banks already report in accordance with IFRS, which involves considerable additional work compared to previous and current reporting based on Hungarian accounting standards. With the introduction of IFRS, this dual reporting will be simplified.
Any company preparing to implement IFRS should begin preparations as soon as possible to make the tasks, necessary steps, and costs (such as financial investments for IT developments and HR expenditures for training) more predictable and manageable.
