In order to complete the various implementations in the country related to accounting and financial reporting, the Turkish Accounting Standards Board (TASB) which has its own legal status and administrative and financial autonomy, was established by Law No 4487 in order to prepare and publish accounting standards.
The TASB, when using this authority, decided to adopt International Financial Reporting Standards (IFRS) to allow integration within contemporary world practices and to be in harmony with EU legislation. As known, IFRS, issued by the IASB (International Accounting Standards Board), is the set of standards required to be applied effective from 1 January 2005 in the preparation of financial statements by enterprises listed in stock exchange markets in EU countries and which issue financial instruments in these markets.
In line with the decision adopted, in the copyright and licence agreement between the TASB and the International Accounting Standards Committee Foundation, it was envisaged that a Turkish translation will be prepared by the TASB and that it will be incorporated in the Turkish legislation. As a result of the translation work in question, the Turkish Accounting Standards (TAS) were finalised by being published both in the official gazette and the website of the TASB, and incorporated in the legislation. As of the introductory seminar held on 12 April 2006, 35 standards were finalised and 2 remained as draft. In 2006 and the following periods, it is certain that all the additions, adjustments and omissions related to IFRS will be applied in order to continue full compliance by the TASB, and that full compliance between TAS and IFRS will be maintained.
Along with these standards, with the draft Turkish Commercial Law expected to come into force in 2007, the requirement to be in compliance with the Turkish Accounting Standards published by the TASB, which are in line with IFRS for all enterprises in the country irrespective of their being public or not, has been introduced. In other words, this requirement stipulates that all enterprises subject to Turkish Commercial Law in Turkey have to apply TAS which is in full compliance with IFRS, when preparing statutory financial statements. The statutory financial statements will be submitted to the approval of the shareholders in the Ordinary General Assembly, and accordingly deemed as the financial statements that should be taken into consideration principally in the profit distribution process. When the draft Turkish Commercial Law comes into effect, legal financial statements to be prepared in compliance with TAS will present more accurate, comprehensive and transparent information to the reader and/or all parties of the enterprise, and will enable our enterprises to have a more competitive, understandable and timely position through speaking a common language in the globalising world market to the appeal of foreign investors.
