Template-Type: ReDIF-Article 1.0

Author-Name: Eleonora Tarpataki
Author-Workplace-Name: Corvinus University of Budapest
Author-Email: eleonora.tarpataki@uni-corvinus.hu

Author-Name: Janka Filyo
Author-Workplace-Name: Corvinus University of Budapest
Author-Email: janka.filyo@uni-corvinus.hu

Author-Name: Norbert Laszlo
Author-Workplace-Name: Corvinus University of Budapest
Author-Email: norbert.laszlo@uni-corvinus.hu


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

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.

Classification-JEL: M41, G21, G32, C21
Keywords: IFRS transition, rating, indicators, ESEF
Pages: 95-112
Volume: 21
Issue: 1
Year: 2022
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-21-1-st4-tarpataki-filyo-laszlo.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:21:y:2022:i:1:p:95-112