PurposeThis paper aims to investigate the non-financial reporting (NFR) practices of Hungarian listed public interest entities for 2016–2018 in terms of the required disclosure content based on the 2014/95/EU Directive (ED).Design/methodology/approach The authors apply content analysis methodology on Hungarian firms subject to mandatory reporting under the ED. The target variable in the multivariate model is the reporting quality (Qi) measured by a combined index.Findings The authors find that the ED had a moderate impact on Hungary's reporting quality because the overall disclosure of the sample only increased from low to medium level. The authors found that the value of intangible assets is a determinant of the reporting quality before and after the implementation of the ED. The findings support the effect of coercive isomorphism on Hungarian NFR practices.Research limitations/implications The limitation of the research is the number of firms examined. However, the authors covered the entire (non-bank) community of the Hungarian firms subject to the ED.Practical implications The authors suggest that reporting entities build upon the synergy between intellectual capital disclosure and NFR when elaborating their reporting strategies. The authors recommend the integration of ethical matters into corporate strategies and policies. Policymakers may consider the revision of the Hungarian regulations. The authors suggest academics embrace these topics in teaching.Originality/value To the best of the authors’ knowledge, this is the first study that investigates the impact of ED in the context of Hungary. The authors contribute to the existing literature by adding the results of the ridge regression model, highlighting the importance of intangible assets.

The purpose of this paper is to investigate the level of intellectual capital (IC) disclosure of the largest Czech and Hungarian listed firms. We apply content analysis of the annual statements and measure IC disclosure by a score. We hypothesize that a significant positive relationship exists between IC disclosure score and such firmspecific financial factors as company size, profitability, book value of intangibles and trade volume. The results of the regression model indicate that among the chosen independent variables, capitalized intangibles and profitability have a significant impact. Another contribution of the paper is the comparison of the two aforementioned Central European countries, which can serve as a basis for future research about the reporting culture of the region.

No abstract

Challenges related to intellectual capital and non-financial reporting have occupied the accounting profession for a long time. Intangible resources, which are of great importance in knowledge economy, can only meet the criteria for validation in traditional financial reports to a limited extent. As a result, entities often choose the voluntary disclosure approach to communicate about these topics with stakeholders. Nowadays, sustainability-related information in non-financial reports is a crucial part of the dialogue between companies and stakeholders. In the future, when disclosure standards related to sustainability and intellectual capital are in force, the attention and focus may shift to the quality of information that is provided. Although entities will probably comply with standards, the depth of their communication will make a difference to stakeholders. The purpose of this viewpoint paper is to provide an overview of the difficulties associated with intangible capital reporting and non-financial reporting, and to support the preparation for challenges related to standard-setting by way of highlighting practical and academic implications.

The pandemic has brought unexpected challenges to businesses as they need to cope with the impact of the virus on their sales performance and face the information need of their stakeholders at the same time. Our study aims to discover the COVID-related risk disclosure practices of Hungarian, publicly listed sample entities in the annual statements prepared for the year 2020. Based on what we have found, the disclosure practices of Hungarian listed entities is quite heterogeneous, there are great differences in the extent of communication with the stakeholders.