The accounting of Hungarian subsidiaries belonging to international corporate groups is more complex than that of purely domestic companies, as they must comply not only with Hungarian regulations but also with group expectations and international accounting standards.
What does dual compliance mean in accounting?
In addition to complying with Hungarian accounting and tax regulations, subsidiaries must also prepare reports for the parent company. This includes meeting consolidation requirements and providing data according to international accounting standards (e.g. IFRS).
As a result, the accounting records must be understandable not only for the Hungarian authorities and the Court of Registration, but also for the parent company’s finance, controlling, and audit teams.
Meeting deadlines is also
far more challenging in these cases. Owners often expect shorter closing and
reporting deadlines than those required by law, and monthly or even weekly
reports are frequently requested. Therefore, it is essential to take these expectations
into account when designing accounting processes.
Accounting logic and reporting structures may also differ
There may be differences
in:
- the accrual of revenues and expenses,
- the valuation and depreciation of assets,
- the treatment of provisions and impairments,
- as well as the accounting of leases and long-term contracts.
Accountants working for international corporate groups therefore do much more than simply process data — they must genuinely interpret and understand it.
The accounting team of LeitnerLeitner keeps your company’s accounting matters under control. Beyond standard bookkeeping tasks, we support you with practical advice to help identify risks and opportunities. Thanks to our integrated service approach, you can access tax, payroll, legal, and employment-related advisory services through a single point of contact. With our modern technological solutions, administrative tasks do not divert your resources from your core business activities. Our recommendations are tailored, efficient, and always up to date.
Transactions between group entities require special attention
Intra-group transactions must be properly documented through contracts and supported by appropriate economic substance. Transfer pricing regulations must also be taken into consideration.
Audits are more frequently mandatory
International corporate groups are often subject to annual statutory audits, internal audits, and group-level audits. This results in more reconciliations and a greater documentation burden.
Accounting records must
therefore be transparent, easy to review, and well explained. This requires an
accounting background with international and large-company experience — one
that not only records data, but also understands the business context behind
it.
Accounting Specialties of Hungarian Subsidiaries Owned by Foreign Businesses and Corporate Groups
