Two regulatory authorities define accounting standards in Turkey: the Banking Regulation and Supervision Agency (the 'BRSA') for the banking sector and the Capital Market Board (the 'CMB') for publicly traded companies.
BRSA Accounting Standards, Banking
The BRSA issued a completely new set of standards to converge local accounting standards with International Financial Reporting Standards ('IFRS') with effect from July 2002. These standards closely correspond with the following IFRS:
- IAS 7, Cash Flow Statements
- IAS 8, Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies
- IAS 10, Events After the Balance Sheet Date
- IAS 16, Property, Plant and Equipment
- IAS 17, Leases
- IAS 20, Accounting for Government Grants and Disclosure of Government Assistance
- IAS 21, The Effects of Changes in Foreign Exchange Rates
- IAS 22, Business Combinations
- IAS 24, Related Party Disclosures
- IAS 27, Consolidated Financial Statements and Accounting for Investments in Subsidiaries
- IAS 28, Accounting for Investments in Associates
- IAS 29, Financial Reporting in Hyperinflationary Economies
- IAS 31, Financial Reporting of Interests in Joint Ventures
- IAS 32, Financial Instruments: Disclosure and Presentation
- IAS 36, Impairment of Assets
- IAS 37, Provisions, Contingent Liabilities and Contingent Assets
- IAS 38, Intangible Assets
- IAS 39, Financial Instruments: Recognition and Measurement
The BRSA standard on Employee Benefits is not fully in compliance with IAS 19, Employee Benefits. The BRSA is expected to issue further standards consistent with IFRS in the future.
CMB Accounting Standards, Publicly Traded Companies
Current CMB accounting standards differ materially from IFRS. However, in October 2002 the CMB introduced an Invitation to Comment on exposure drafts of a new set of accounting standards which would replace the whole of the existing accounting regulations. These draft standards very closely mirror International Financial Reporting Standards. Effectively, the CMB translated all IFRS including proposed amendments to the existing IFRSs, except for the following IFRSs:
- IAS 15, Information Reflecting the Effects of Changing Prices
- IAS 19, Employee Benefits
- IAS 26, Accounting and Reporting by Retirement Benefit Plans
- IAS 41, Agriculture
The CMB is proposing that the new standards become applicable commencing for periods commencing on or after 31 December 2003.
The CMB had proposed new inflation accounting and consolidation standards last year, to fill the two largest gaps in the existing regulations. The implementation of those standards, originally planned for 31 December 2001, was postponed until 2003. It now appears that those proposed standards will be superseded by the much more widespread and radical reform discussed above.
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