Kulcs-Soft Were Among the First to Publish in ESEF in Hungary

In countries where authorities have made it possible to postpone filing annual financial reports in ESEF, companies were faced with a choice. Go through with their ESEF reporting this year or wait until next year. For the Hungarian software-developer Kulcs-Soft the choice was simple, and by the end of April 2021 they became one of the first companies to publish in ESEF in Hungary.

30 years ago, Kulcs-Soft started as a small entrepreneurship, but they have grown over the past three decades and today they have nearly 100 employees who service more than 60.000 customers.

After they became one of the first companies to publish in ESEF in Hungary, we sat down with Zsuzsa Pámer, CFO at Kulcs-Soft, to talk about the process of getting ready for ESEF and the choice to go through with publishing when they could have postponed.

Kulcs-Soft Didn’t Want to Alter Their Reporting Process

Choosing between the different ESEF vendors and solution types can seem like a daunting task, especially when you consider, that finalizing annual financial reports is a complicated and often hectic process – even without needing to publish in a new reporting format.

“When we started looking at different XBRL providers to help us get ready for ESEF, we wanted to make sure, that we didn’t need to change our reporting process more than we had to,” said Zsuzsa Pámer, when we asked what considerations, they had before they began their search for an ESEF provider.

While different solution types certainly will have different benefits and drawbacks, the one that will have the smallest effect on your usual reporting process, is a conversion of your annual report based on a mapped template. And the ParsePort XBRL Converter, which helped Kulcs-Soft become one of the first companies to publish in ESEF in Hungary, operates on that very premise.

“Before we even started creating our annual report for 2020, the ParsePort mapping team helped us create a mapped template based on our 2019 figures. And when we started working on our financial statements for 2020, we simply updated that template with the correct numbers. Other than that, our reporting process remained pretty much the same. The design team created a PDF, and our finance team handled the numbers. When everything was ready, we simply uploaded the template, now updated with the 2020 figures, along with our PDF to the ParsePort XBRL Converter and clicked a button,” Zsuzsa Pámer said, about the effect ESEF had had on their reporting process.

Many Companies Are Postponing ESEF in Hungary But Not Kulcs-Soft

Most public listed companies in Hungary seem to have opted to postpone publishing their annual financial reports in ESEF for next year, and the companies who look to still be going through with ESEF seem to mainly be big companies, so why is it, that a company such as Kulcs-Soft decided to publish in ESEF in 2020?

“We honestly didn’t consider postponing, simply because it became so easy for us to publish in ESEF. I think most companies who isn’t publishing in ESEF, are choosing to postpone because they either haven’t found an XBRL provider yet, or because the solution they have chosen makes their reporting process too complicated. For us, neither is the case. We were ready and converting our annual financial report to ESEF was extremely simple,” Zsuzsa Pámer said.

The decision to not postpone publishing their annual financial report in ESEF paid off, and on the 30th of April 2021 Kulcs-Soft became one of the first public listed companies in Hungary to publish their annual financial report in ESEF.