IDEAS home Printed from https://ideas.repec.org/a/mnb/finrev/v21y2022i1p95-112.html
   My bibliography  Save this article

Transition of Hungarian Companies to IFRS-based Reporting in Relation to Indicators Used in Credit Approval

Author

Listed:
  • Eleonora Tarpataki

    (Corvinus University of Budapest)

  • Janka Filyo

    (Corvinus University of Budapest)

  • Norbert Laszlo

    (Corvinus University of Budapest)

Abstract

Legal requirements and opportunities are prompting more and more Hungarian companies to prepare their financial statements in accordance with International Financial Reporting Standards (IFRS). In our study, we examine the impact of transition using typical indicators that are frequently included in financial institutions' rating criteria. We compared the balance sheet, P/L account and cash flow data of 42 companies operating in different industries, as reported in their statements prepared in accordance with Hungarian and international regulations, and concluded that although there may be significant variations at an individual level, this is not the case in terms of the median of the aggregate data. Although the introduction of the European Single Electronic Format (ESEF), which allows for uniform interpretation and automatic processing of financial statements, has also been postponed for one year in Hungary due to the pandemic, it will open new perspectives for the development of rating systems, requiring preparations by credit institutions.

Suggested Citation

  • Eleonora Tarpataki & Janka Filyo & Norbert Laszlo, 2022. "Transition of Hungarian Companies to IFRS-based Reporting in Relation to Indicators Used in Credit Approval," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 21(1), pages 95-112.
    • Handle: RePEc:mnb:finrev:v:21:y:2022:i:1:p:95-112
    as

    Download full text from publisher

    File URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-21-1-st4-tarpataki-filyo-laszlo.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    IFRS transition; rating; indicators; ESEF;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mnb:finrev:v:21:y:2022:i:1:p:95-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Morvay Endre (email available below). General contact details of provider: https://edirc.repec.org/data/mnbgvhu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.