Capital maintenance disclosure in Hungary and Slovakia

after Directive 2013/34/EU implementation

Absztrakt

Capital maintenance concepts are relevant aspects of profit determination and subsequent dividend distribution with significant impact on the sustainable development of entities. The assessment of capital maintenance is based on the information disclosed in financial statements which are compiled in accordance with international or national legislation. The aim of this paper is to identify similarities and differences in capital maintenance disclosure in financial statements with emphasis on equity after Directive 2013/34/EU implementation in Hungary and Slovakia. Due to the wider extent of information required to be disclosed by large entities, growth, retention and erosion of capital can be assessed more precisely than in small or micro entities.