In practice the common representative or the appointed bookkeeper has four months after the close of the business year to prepare the report, which the general meeting must adopt by 31 May at the latest. This deadline is not flexible: the law ties it to a specific date, not to a vague first half of the year.
The content follows the format set out in the annex of the decree and includes the balance sheet and the profit and loss statement. This is separate from the settlement the representative gives owners each year on the use of common costs: the latter serves day to day transparency, while the accounting report shows the annual financial picture of the condominium as an economic entity in official, statutory form.
One important relief: if income from core activity and business activity does not exceed 50 million forints in two consecutive years, the condominium may prepare a simplified report instead of the full one. Most medium sized residential buildings fall into this category.
A key difference compared with companies: condominiums are generally not obliged to file the report, so it does not have to be submitted to the court of registration or the tax authority. The report stays in the building's archive as an annex to the minutes, and any owner may inspect it.
If the 31 May deadline cannot be met, for example because a prolonged bank reconciliation delays the closing balance, it is better to inform owners in writing with the actual reason and a new planned date rather than let the general meeting slip in silence.
Merbo schedules bookkeeping in every managed building so that the draft report is ready in March, giving the supervisory committee time to review it thoroughly before the general meeting at the end of May.