Potential IFRS adopting entities’ output characteristics in Hungary

Abstract

International Financial Reporting Standards (IFRS) reporting is becoming increasingly relevant in Hungary, and the existing scientific literature about transition effects in other countries is already rich and diverse. In this paper, we aim to explore the macroeconomic characteristics of the transitions on two robust samples approximating the total population of business entities within the economy and the potential IFRS adopting entities with multiple linear regression models between 2016 and 2019. The results are interpreted in the context of the related IAS/IFRS standards, and the differences are compared to the Hungarian accounting regime. This paper focuses primarily on the ESA 2010-defined output, GDP and NDP impacts.