According to the 2006 Turkey Progress Report by the European Commission (EC), some progress can be reported in the area of accounting. The Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. The regulatory and institutional arrangements for financial reporting and accounting in Turkey are fragmented, with multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs that were effective in 2003. However, the CMB's IFRS-based standards are not equivalent to IFRSs because of its translation policy and the cut-off date of 2003. There are significant differences between IFRSs and the BDDK's standards for banks. The GDI has not yet adopted IFRS-based standards for all insurance companies, although it has issued a notice requiring listed insurance companies to publish financial statements in accordance with the CMB's IFRS-based standards. However, proposed initiatives to centralize the accounting standard setting process have the potential to eliminate inconsistencies in the financial reporting framework and enhance the efficiency of the standard setting process. If the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the TCC 1956 will provide that the Turkish Accounting Standards (TASs) issued by the TMSK will become the only source of general purpose accounting standards.

General Overview

According to the 2006 Turkey Progress Report by the European Commission (EC), some progress can be reported in the area of accounting. The Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. The regulatory and institutional arrangements for financial reporting and accounting in Turkey are fragmented, with multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively, while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. All publicly held companies are required to comply with the CMB's requirements regarding disclosure deadlines, as well as its nonfinancial reporting standards. Publicly held banks and insurance companies are also required to comply with the non-financial reporting standards set by the BDDK or GDI, respectively. However, proposed initiatives to centralize the accounting standardsetting process have the potential to eliminate inconsistencies in the financial reporting framework and enhance the efficiency of the standardsetting process. If the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the TCC 1956 will provide that the Turkish Accounting Standards (TASs) issed by the TMSK will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 79; EC 2006, p. 37)

KPMG in its 2006 publication "Investment in Turkey" reports that accounting in Turkey has traditionally been strongly influenced by the need to produce information, which is acceptable to the fiscal authorities and is in accordance with commercial and tax laws. With growing economic activities and international capital movements the emphasis is moving towards production of information for a wide range of users. In accordance with this trend, the Ministry of Finance (MoF) has issued a Communiqué on December 26, 1992, setting the new accounting standards and a Uniform Chart of Accounts (UCA 1994) in presentation of financial statements. This communiqué aimed to make the information presented by financial statements reliable and true values, and comparable with other companies. (KPMG 2006, p. 16)

The UCA 1994 is compulsory for all companies except the ones which have to use different accounting techniques by their sector such as banks, insurance, leasing and factoring companies and brokers. The annual accounts for all companies must include an income statement, a balance sheet and notes to those. Accounts must be drafted and shall be approved by the general shareholders meeting, within 3 months from the end of the financial period. The format of accounts follows the model accounts contained in the 1992 Communiqué. The standard forms of financial statements have been adopted as from January 1, 1994. There are additional disclosure requirements for companies listed on the Istanbul Stock Exchange (ISE), which are set by the Capital Markets Board (CMB). (KPMG 2006, p. 17)

The accounting principles and policies stated in the 1992 communiqué and the CMB regulations essentially follow the internationally accepted accounting principles and policies. These include the underlying assumptions such as going concern, consistency, time period, unit of measure, and the basic principles like cost, matching, prudence, objectivity, materiality, substance over form, and full disclosure. According to tax rules, on the other hand, in principal accrual accounting is recognized, but treatment of certain items is closer to cash accounting. (Sigma-Mugan & Hosal-Akman 2005, p. 133)

Taking into consideration Regulation (EC) No 1606/2002 of the European Parliament and the Council of July 19, 2002 on the application of IFRSs, which requires all European Union (EU) companies listed on a regulated market to use IFRSs from 2005 onwards, the CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. All newly issued IFRSs are to be adopted. Communique XI-25 is required for all listed companies effective January 1, 2005. Earlier adoption is permitted. Although all traded and listed companies are expected to comply with these standards, no specific measures have been taken for the reporting of non-listed companies or small and medium sized enterprises (SMEs). Unless they enter into international partnership or have international investors, such companies will continue to follow the MoF's 1992 Communiqué and other regulations imposed by the Ministry such as the inflation accounting and thus mainly follow tax-based accounting. (Sayar 2004, p. 2; Sigma-Mugan & Hosal-Akman 2005, p. 135; OECD 2006, p. 69)

According to a 2006 study by the OECD, there are some inconsistencies in the financial reporting standards that apply to different types of publicly held companies. Listed companies and certain other entities (such as market intermediaries) subject to the CMB's oversight are required to prepare their financial statements either in accordance with the CMB's IFRS-based standards (set out in Communiqué XI: No 25) or current IFRSs (i.e. the original text published in English by the International Accounting Standards Board (IASB)). Publicly held but unlisted companies subject to the CMB's oversight can prepare their financial statements either in accordance with Communiqué XI: No 25, current IFRSs or the CMB standards (set out in Communiqué XI: No 1) that pre-dated the adoption of Communiqué XI: 25. The standards in Communiqué XI: No 1 vary in some important respects from IFRS-based standards. The principal differences relate to presentation of financial statements, segment reporting, leases, borrowing costs, financial instruments, business combinations, retirement benefit plans, earnings per share and impairment of assets. Publicly held banks are exempt from the application of the CMB's standards. There are significant differences between IFRSs and the BDDK's standards for banks. The GDI has not yet adopted IFRS-based standards for all insurance companies, although it has issued a notice requiring listed insurance companies to publish financial statements in accordance with the CMB's IFRS-based standards. There does not appear to be a high degree of awareness among listed insurance companies of this new requirement. Banks do not have to consolidate the financial information of nonfinancial firms that they control, a practice that is inconsistent with the international standards. These variations in standards and reporting practices make it difficult for users of financial information to compare publicly held Turkish companies with each other and with other entities that use current IFRSs. (OECD 2006, pp. 19, 69)

The OECD points out that the CMB developed and implemented IFRS-based standards based on CMB staff's translation of IFRSs into Turkish. It published the proposed standards for public comment before they were implemented, but it did not publish a feedback statement describing how it took those comments into account. The CMB's IFRS-based standards do not correspond exactly to IFRSs because the CMB did not follow an International Accounting Standards Board (IASB)-approved translation process when it translated IFRS into Turkish and it took Turkish conditions into account in carrying out the translation. There are also a few gaps in the CMB's standards that resulted from the CMB's choice of a cut-off date of January 2003 for the IFRSs that it translated into Turkish. On the other hand, the TMSK has been using an IASB-approved translation process, which provided for the establishment of expert public-private sector working groups, each charged with responsibility for translating a standard on a word-for-word basis. Each working group also reviewed some of the translations completed by other working groups to ensure consistent translation across all of the groups. Once the standards were translated, they were published for public comment. Each final TAS is being published side-by-side with the original, English version of the standard. The TMSK has indicated that it plans to employ the same translation process going forward and that it will start translating standards as soon as they are published by the IASB for consultation, so that TASs will keep current with IFRSs as they evolve. (OECD 2006, p. 80)

The 2006 OECD study states further that a question arises whether the CMB has developed sufficiently comprehensive and systematic processes to enable its staff to identify and require the correction of significant disclosure deficiencies during the transition period to IFRSs. Although the CMB has invested significant resources to improve key staff's understanding of IFRSs, a systematic review module focusing on the greatest risks associated with the transition to IFRSs has not been developed yet, even though the CMB has been accepting financial statements voluntarily prepared in accordance with IFRSs for a few accounting periods and all listed companies should have already submitted at least one set of interim financial statements prepared in accordance with IFRSs. Regulatory staff in other countries likely is facing similar challenges. In an environment where market discipline is weaker and in-depth audit practice reviews are not widespread, however, the regulator's review of financial statements can take on greater significance. Thus, it is particularly important for the CMB and other relevant authorities to have leading-edge review systems and processes. (OECD 2006, p. 71)

The Expert Accountants' Association of Turkey (EAAT) and Union of Chambers of Certified Public Accountants of Turkey (TURMOB) are members of the International Federation of Accountants (IFAC). (IFAC website)

The Principles

IFRS 1: First-time Adoption of International Financial Reporting Standards (effective 2006)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IFRS 1: First-time Adoption of International Financial Reporting Standards was issued in June 2003 and applies to an entity whose first IFRS financial statements are for a period beginning on or after January 1, 2004. In June 2005, the IASB issued amendments to IFRS 1: First-time Adoption of International Financial Reporting Standards and the Basis for Conclusions on IFRS 6: Exploration for and Evaluation of Mineral Resources. The amendments clarify the IASB's intentions with respect to an exemption provided to first-time adopters of IFRSs who choose to adopt IFRS 6 before 1 January 2006. The effective date of these amendments is January 1, 2006. (IASB website)

IFRS 2: Share-based Payment (effective 2005)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IFRS 2 Share-based Payment was issued in February 2004 and applies to annual periods beginning on or after January 1, 2005. (IASB website)

IFRS 3: Business Combinations (effective 2004)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IFRS 3: Business Combinations was issued in March 2004 and is applicable for business combinations for which the agreement date is on or after March 31, 2004. (Deloitte IAS Plus website)

IFRS 4: Insurance Contracts (effective 2006)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IFRS 4: Insurance Contracts was issued in March 2004 and is applicable for annual periods beginning on or after January 1, 2005. On August 18, 2005, the IASB amended the scope of IAS 39 to include financial guarantee contracts issued. However, if an issuer of financial guarantee contracts has previously asserted explicitly that it regards such contracts as insurance contracts and has used accounting applicable to insurance contracts, the issuer may elect to apply either IAS 39 or IFRS 4: Insurance Contracts to such financial guarantee contracts. The amendments to IAS 39 and IFRS 4 are effective for annual periods beginning on or after 1 January 2006, with earlier application encouraged. (Deloitte IAS Plus website)

IFRS 5: Non-current Assets Held for Sale and Discontinued Operations (effective 2005)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IFRS 5: Non-current Assets Held for Sale and Discontinued Operations was issued in March 2004 and is applicable for annual periods beginning on or after January 1, 2005. (IASB website)

IFRS 6: Exploration for and Evaluation of Mineral Resources (effective 2006)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IFRS 6: Exploration for and Evaluation of Mineral Assets was issued in December 2004 and is applicable for annual periods beginning on or after January 1, 2006. (IASB website)

IFRS 7: Financial Instruments: Disclosures (effective 2007)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IFRS 7: Financial Instruments: Disclosures was issued on August 18, 2005 and is applicable for annual periods beginning on or after January 1, 2007. (Deloitte IAS Plus website)

IAS 1: Presentation of Financial Statements (effective 2007)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The effective date of IAS 1 (rev. 2003): Presentation of Financial Statements was January 1, 2005. However, the IASB further revised IAS 1: Presentation of Financial Statements in August 2005 as a part of its project to develop IFRS 7 Financial Instruments: Disclosures. The IASB concluded to amend IAS 1 to add requirements for disclosures of: (1) the entity's objectives, policies and processes for managing capital; (2) quantitative data about what the entity regards as capital; (3) whether the entity has complied with any capital requirements; and (4) if it has not complied, the consequences of such non-compliance. These disclosure requirements apply to all entities, effective for annual periods beginning on or after 1 January 2007, with earlier application encouraged. (Deloitte IAS Plus website)

IAS 2: Inventories (effective 2005)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The IASB revised IAS 2: Inventories in December 2003. The revised standard is effective for periods commencing January 1, 2005. (IASB website)

IAS 7: Cash Flow Statements (effective 1994)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 7: Cash Flow Statements (revised 1992) is applicable for periods beginning on or after January 1, 1994. (IASB website)

IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors (effective 2005)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The IASB revised IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors in December 2003. The revised standard is effective for periods commencing January 1, 2005. (Deloitte IAS Plus website)

IAS 10: Events after the Reporting Period (effective 2005)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The IASB revised IAS 10: Events After the Balance Sheet Date in December 2003. The revised standard is effective for periods commencing January 1, 2005. (Deloitte IAS Plus website)

IAS 11: Construction Contracts (effective 1995)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 11: Construction Contracts is applicable for periods beginning on or after January 1, 1995. (IASB website)

IAS 12: Income Taxes (effective 2001)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 12: Income Taxes is applicable for periods beginning on or after January 1, 1998. (IASB website)

IAS 14: Segment Reporting (effective 1998)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 14 Segment Reporting is applicable for periods beginning on or after 1 July 1998. (IASB website)

IAS 16: Property, Plant and Equipment (effective 2005)

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According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The International Accounting Standards Board (IASB) revised IAS 16 Property, Plant and Equipment Sheet Date in December 2003. The revised standard is effective for the periods commencing on January 1, 2005. (Deloitte IAS Plus website)

IAS 17: Leases (effective 2005)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The International Accounting Standards Board (IASB) revised IAS 17: Leases in December 2003. The revised standard is effective for periods commencing January 1, 2005. (Deloitte IAS Plus website)

IAS 18: Revenue (effective 1995)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 18: Revenue is applicable for periods beginning on or after January 1, 1995. (IASB website)

IAS 19: Employee Benefits (effective 2006)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 19: Employee Benefits was issued in 1998 and is applicable for periods beginning on or after January 1, 1999. However, the IASB revised IAS 19: Employee Benefits in December 2004 to take into account options to recognize actuarial gains and losses in full, outside profit or loss, in a statement of changes in equity. The amendment is applicable for periods beginning on or after January 1, 2006. (Deloitte IAS Plus website)

IAS 20: Accounting for Government Grants and Disclosure of Government Assistance (effective 1984)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 20: Accounting for Government Grants and Disclosure of Government Assistance is applicable for periods beginning on or after January 1, 1984. (IASB website)

IAS 21: The Effects of Changes in Foreign Exchange Rates (effective 2005)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The International Accounting Standards Board (IASB) revised IAS 21: The Effects of Changes in Foreign Exchange Rates in December 2003. The revised standard is effective for periods commencing January 1, 2005. (Deloitte IAS Plus website)

IAS 23: Borrowing Costs (effective 1995)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 23: Borrowing Costs is applicable for periods beginning on or after January 1, 1995. (IASB website)

IAS 24: Related Party Disclosures (effective 2005)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

In a 2006 study, the Organization for Economic Cooperation and Development (OECD) states that some commentators have expressed the view that many companies did not seem to pay much attention to the periodic disclosures required by IAS 24. They also commented that the quality and consistency of companies' disclosures about related party transactions in their pre-2005 financial statements was variable. Some of these and other commentators also noted, however, that more rigorous and consistent monitoring of company disclosures by CMB staff is having a disciplinary effect on companies and providing greater assurance that, at a minimum, significant related party transactions that would otherwise become public are being disclosed on a timely basis. Disclosure with respect to related party transactions is expected to further improve as companies and auditors become more experienced with IASs. Proposed amendments to the Turkish Commercial Code (TCC 1956) requiring controlled companies to report on relations between controlled and controlling companies are welcome reforms, which are also expected to enhance the quantity, quality and consistency of companies' disclosures about related parties and related party transactions within company groups. These recent and proposed amendments, however, might not be sufficient to fully address the existing gaps in the disclosure framework for related party transactions. For example, the IAS does not include the State within the definition of related party, so related party transactions involving state-owned enterprises would not have to be disclosed in financial reports. Also, the proposed amendments to the TCC 1956 providing for enhanced disclosure of transactions and relations among affiliated companies do not appear to encompass transactions involving related parties other than affiliated companies or parent companies (e.g. board members or individual controlling shareholders). (OECD 2006, p. 76)

The IASB revised IAS 24: Related Party Disclosures in December 2003. It is applicable for annual periods beginning on or after January 1, 2005. (Deloitte IAS Plus website)

IAS 26: Accounting and Reporting by Retirement Benefit Plans (effective 1998)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 26 Accounting and Reporting by Retirement Benefit Plans is applicable for periods beginning on or after January 1, 1988. (IASB website)

IAS 27: Consolidated and Separate Financial Statements (effective 2005)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The International Accounting Standards Board (IASB) revised IAS 27: Consolidated and Separate Financial Statements in December 2003. The revised standard is effective for periods commencing January 1, 2005. (Deloitte IAS Plus website)

IAS 28: Investments in Associates (effective 2005)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The International Accounting Standards Board (IASB) revised IAS 28: Investment in Associates in December 2003. The revised standard is effective for periods commencing January 1, 2005. (Deloitte IAS Plus website)

IAS 29: Financial Reporting in Hyperinflationary Economies (effective 1990)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 29: Financial Reporting in Hyperinflationary Economies is applicable for periods beginning on or after January 1, 1990. (IASB website)

IAS 31: Interests in Joint Ventures (effective 2005)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The IASB revised IAS 31: Interests in Joint Ventures in December 2003. The revised standard is effective for periods commencing January 1, 2005. (Deloitte IAS Plus website)

IAS 32: Financial Instruments: Disclosure and Presentation (effective 2005)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 32: Financial Instruments: Disclosure and Presentation was issued in December 2003 and is applicable for annual periods beginning on or after January 1, 2005. (Deloitte IAS Plus website)

IAS 33: Earnings per Share (effective 2005)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The International Accounting Standards Board (IASB) revised IAS 33: Earnings per Share in December 2003. The revised standard is effective for periods commencing January 1, 2005. (Deloitte IAS Plus website)

IAS 34: Interim Financial Reporting (effective 1999)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 34: Interim Financial Reporting is applicable for periods beginning on or after January 1, 1999. (IASB website)

IAS 36: Impairment of Assets (effective 2004)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The IASB issued IAS 36: Impairment of Assets in March 2004. It is applied to goodwill and intangible assets acquired in business combinations after March 31, 2004 and to all other assets for annual periods beginning on or after March 31, 2004. (Deloitte IAS Plus website)

IAS 37: Provisions, Contingent Liabilities and Contingent Assets (effective 1999)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 37: Provisions, Contingent Liabilities and Contingent Assets was issued in July 1998 and is applicable for periods beginning on or after July 1, 1999. (IASB website)

IAS 38: Intangible Assets (effective 2004)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The IASB revised IAS 38: Intangible Assets in March 2004. The revised standard is applied to the accounting for intangible assets acquired in business combinations after March 31, 2004, and to all other intangible assets for annual periods beginning on or after March 31, 2004. (Deloitte IAS Plus website)

IAS 39: Financial Instruments: Recognition and Measurement (effective 2006)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

In December 2003, the IASB issued IAS 39: Financial Instruments: Recognition and Measurement comprehensively revised as a part of the IASB's Improvement Project. IAS 39 became effective in January 2005. Subsequently, during the period of 2004-2005 the IASB issued several amendments to IAS 39 on macro hedging, day 1 gain/loss transition, hedges of forecast intragroup transactions, fair value option, and financial guarantee contracts. The amendment for macro hedging is applicable for annual periods beginning on or after January 1, 2005; the amendment for day 1 gain/loss transition is applicable for annual periods beginning on or after January 1, 2005; the amendment for hedges of forecast intragroup transactions is applicable for periods beginning on or after January 1, 2006; the amendment for fair value option is applicable for periods beginning on or after January 1, 2006; and the amendment for financial guarantee contracts is applicable for periods beginning on or after January 1, 2006. (Deloitte IAS Plus website)

IAS 40: Investment Property (effective 2005)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

The IASB revised IAS 40: Investment Property in December 2003. The revised standard is effective for periods commencing January 1, 2005. (Deloitte IAS Plus website)

IAS 41: Agriculture (effective 2003)

NC

According to the 2006 Turkey Progress Report by the European Commission (EC), the Turkish Accounting Standards Board (TMSK) has so far adopted almost all International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). However, these are not legally binding nor generally applied by Turkish Companies. Turkey does not have a general purpose accounting framework that corresponds to internationally accepted accounting principles. There are multiple agencies each administrating their own regimes. The Banking Regulatory and Supervisory Agency (BDDK) and the General Directorate of Insurance (GDI) set financial reporting standards for banks and insurance companies, respectively (including publicly held companies), while the Capital Markets Board (CMB) sets financial reporting standards for all other publicly held companies. The CMB issued Communique XI-25 incorporating almost all IFRSs effective 2003. There are significant differences between IFRSs and the BDDK's standards for banks and the GDI has not yet adopted IFRS-based standards for all insurance companies. However, once the proposed amendments to the Turkish Commercial Code (TCC 1956) are enacted, the Turkish Accounting Standards (TASs) will become the only source of general purpose accounting standards. (Sayar 2004, p. 3; OECD 2006, pp. 21, 69, 79; EC 2006, p. 37)

IAS 41: Agriculture is applicable for periods beginning on or after January 1, 2003. (IASB website)