Change and choice in Hungarian accounting practice

Abstract

This paper presents an exploration of change and choice in Hungarian accounting practice following implementation of the Accounting Law of 1991. A question-naire has been used, supported by interviews, to identify patterns of, and reasons for, change and choice. 'Analysis of the data leads to proposals for a focus to further research in this area. The paper first outlines the background to the 1991 Accounting Law and the changes it introduced. The data and questionnaire method are then explained. Information collected from the questionnaires allows subdivision of respondents into two groups such that one group (the observers) is used as a source of opinion on patterns of, and reasons for, change which may be tested by the practices applied by the other group (the financial managers). This method of analysis is applied to eight significant areas of accounting policy, from which conclusions are drawn regarding the factors which appear to have influenced change and choice in Hungarian accounting practice.