CONSOLIDATED FINANCIAL STATEMENTS APPLYING NATIONAL AND INTERNATIONAL FINANCIAL REPORTING REGULATIONS

Abstract

Multinational companies operating in the global market have a diverse system of relationships. These companies form relationships through investments and cross-border transactions that bring them into a relationship of interest, ownership and dependence with each other. It is important for stakeholders to access a statement on these groups of companies that provides an adequate, realistic picture of the enterprises. Based on separate statements, the presentation of a realistic picture cannot be ensured. The widely accepted tool that can be used to provide stakeholders with combined statements excluding internal relations of the groups of companies is consolidated accounting. This study presents the application of the European Union’s mandatory accounting regulations in Hungary in accordance with the alteration of Hungarian regulations. Despite the obligations, it is also shown that the major reasons motivating these companies to transition from Hungarian to IFRS reporting are their parent companies.

Keywords

• consolidation
• consolidated financial statements
• ifrs financial statements