Transformation in Hungary’s Higher Education System
Within the framework of accrual-based and cash-based accounting

Lívia Pavlik
PhD, Chancellor, Associate Professor, Corvinus University of Budapest, Faculty of Business Administration, Department of Financial Accounting

Published in: Public Finance Quarterly 2016/2 (p. 224-243.)

SUMMARY: On the basis of the goals set out in the strategy paper entitled “Gear shifting in higher education”, the Ministry of Human Resources made a decision on the structural transformation of several higher education institutions in 2015 leading to separation, separation by integration as well as merger. This paper is designed to compare how the transformation or dissolution without succession of business associations differs from the main features of the transformation of budgetary institutions with special regard to the features of the ownership structure of these economic entities. (Xantus, 2010) The structural changes are reviewed in the framework of the “double double-entry” bookkeeping method that combines accrual-based and cash-based accounting with a view also to changes in the legislative background of this transformation that occurred simultaneously with the preparations being made at the institutions. The paper highlights the cyclic nature of higher education activities that should be treated as a crucial factor in choosing the effective date of the changes.

KEYWORDS: merger, demerger, budgetary institutions, business associations, public finances accounting, accrual-based accounting, higher education


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