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Turkey

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Financial Reporting Framework in Turkey

The Kamu Gözetimi, Muhasebe ve Denetim Standartları Kurumu (KGK) is setting accounting standards in Turkey. The Turkish Financial Reporting Standards (TFRSs) are in full compliance with IFRS. New and amended standards are continuously adopted by publishing in the Official Gazette.

All companies that are regarded as "public interest companies" are required to use TFRSs in their financial statements. The number of companies has been continuously increased since 2005 and currently the following companies are considered to be of public interest:

  • Companies whose securities are traded in a regulated market;
  • Intermediary institutions;
  • Portfolio management companies;
  • Banks;
  • Financial lease companies;
  • Factoring companies;
  • Financing companies;
  • Insurance companies;
  • Reassurance companies;
  • Pension companies;
  • Asset management companies;
  • Pension funds;
  • Investment firms;
  • Collective investment schemes;
  • Credit rating agencies;
  • Mortgage finance institutions;
  • Housing finance and asset finance funds;
  • Asset leasing companies;
  • Central clearing institutions;
  • Central depository institutions;
  • Trade repositories;
  • Financial holding companies;
  • Payment institutions;
  • Electronic money institutions; and
  • Currency offices, precious metals brokerage houses and precious metals producing and marketing companies that are member of Borsa Istanbul.

All other companies are permitted to apply IFRSs.

IFRSs can be followed in one of two ways due to delays in translating IFRSs into Turkish:

  • A company can follow the official English version of IFRSs as published by the IASB, in which case the audit report and basis of presentation footnote make an explicit statement of compliance with International Financial Reporting Standards.
  • A company can follow the TFRSs. Because of the translation delay, the audit report and basis of presentation footnote state that the financial statements comply with "IFRSs as adopted for use in Turkey".

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.