HAVE WE REALLY BEEN USING THE INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) SINCE 2005? CASE OF TURKEY

Year 2015, Volume: 7 Issue: 1, 36 - 46, 01.06.2015

Melissa N. Cagle Çağnur Balsarı Fatih Dalkılıç

Abstract

─Abstract ─ Starting from the year 2002, the Turkish national regulatory agency has undertaken an extensive role in the convergence efforts towards IFRS. In order to support the transition, the Turkish Capital Markets Board (TCMB) implemented several versions of IFRS, regulatory practices and compliance requirements- all over the course of 15 years. The first effort undertaken in the road to IFRS transition was the issuance of Series XI, No: 25 by the TCMB. However, Series XI, No: 25 was not fully compatible with the international standard set and Series XI, No: 27 was put into effect in order to allow the companies to refer to the original IFRS when necessary. This has created three groups of reporting companies; Series XI, no: 25 users, IAS/IFRS users and mixed users of both sets. Nobes (2006) states that there is a risk that the process of translation will change or lose meaning from the original version of the standard and as these various IFRS are given legal status in various countries, this approach can potentially lead to application differences between jurisdictions. In line with this argument, the aim of the current study is to discuss impact of these differences on financial report comparability and analysis in Turkey

Keywords

IFRS, harmonization, convergence, Turkey, Series XI, No: 25

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