We would like to draw your attention to the fact that significant changes will come into effect from January 1, 2025 in the thresholds of audit obligation, which may directly affect the financial statements of companies and their accounting obligations starting next year.
According to the amendments, those economic entities whose annual net sales or number of employees exceeds the new increased thresholds may be exempted from the audit obligation. Those enterprises are exempted from the audit obligation where the average net sales of the economic entity in the previous two business years does not exceed HUF 600 million and at the same time the average number of employees does not exceed 50 people.
For accounting reports prepared for the business year starting on or after January 1, 2025, business entities must determine whether they are exempt from the audit obligation or not, taking into account the new thresholds. For example, if an entrepreneur with a calendar annual reporting date (December 31) realized net sales of HUF 400 million in 2022, HUF 450 million in 2023, and HUF 500 million in 2024 and employed fewer than 50 employees in all three years, then the report prepared for December 31, 2024 – given the currently effective threshold of HUF 300 million – must be reviewed by an auditor, while the report prepared for December 31, 2025 – based on the increased threshold of HUF 600 million – will no longer be required to be audited.
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If you have any questions or comments regarding the changes, please do not hesitate to contact us.
If you need further valuable information on the changes in the audit obligation and accounting rules, subscribe to our newsletter. If you need help in complying with the legislation, please feel free to contact us with your questions.
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Dr. Géza Katona, LL.M. attorney at law
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Katona & Partner Attorneys’ Association
H-106 Budapest, Tündérfürt utca 4.
Tel.: +36 1 225 25 30
Mobile: + 36 70 344 0388
Fax: +36 1 700 27 57
g.katona@katonalaw.com