Accounting is required and books and records of the previous 8 financial years should be available. Accounting legislation requires business entities to publish annual reports. The reports need to be filed annually and are to be prepared in the Hungarian language. The reports must be prepared in HUF, EUR, or USD (but the use of other currencies is also accepted subject to conditions). Businesses have to support their reports generally with double-entry bookkeeping.
Annual reports include:
- Balance sheet;
- Profit & loss account;
- Cash flow statement;
- Notes to financial statements; and
- Business report.
The form of the annual report depends on the net turnover, the balance sheet total, the number of employees and the limits thereof. The rules cater for the following types of annual reports:
- Simplified annual;
- Consolidated annual;
- Simplified; and
- Simplified for micro-entities.