Turkey - Report on the Observance of Standards and Codes : Accounting and Auditing
As work on the economics of information' demonstrates, enhancing the reliability and availability of financial reporting is conducive to economic growth and mitigating the risk of financial system instability. In that context, this report provides an assessment of accounting and auditing standards and practices in Turkey. It uses International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) as benchmarks and draws on good practices in the field of accounting and audit regulation to assess the quality of financial information and make policy recommendations. For European Union (EU) candidate countries such as Turkey, the assessment also has regard to the relevant requirements of EU law (also known as the acquis communautaire). There has been significant progress in recent years in improving the environment and framework for financial reporting in Turkey and currently further wide-scale reforms are in progress. In particular, a new draft commercial code will modernize statutory regulation of company financial reporting and will set a major challenge for the accounting and auditing professions in Turkey through the requirement to apply Turkish Accounting Standards based on IFRS and audits based in international Standards of Auditing (ISA).
Summary: | As work on the economics of
information' demonstrates, enhancing the reliability
and availability of financial reporting is conducive to
economic growth and mitigating the risk of financial system
instability. In that context, this report provides an
assessment of accounting and auditing standards and
practices in Turkey. It uses International Financial
Reporting Standards (IFRS) and International Standards on
Auditing (ISA) as benchmarks and draws on good practices in
the field of accounting and audit regulation to assess the
quality of financial information and make policy
recommendations. For European Union (EU) candidate countries
such as Turkey, the assessment also has regard to the
relevant requirements of EU law (also known as the acquis
communautaire). There has been significant progress in
recent years in improving the environment and framework for
financial reporting in Turkey and currently further
wide-scale reforms are in progress. In particular, a new
draft commercial code will modernize statutory regulation of
company financial reporting and will set a major challenge
for the accounting and auditing professions in Turkey
through the requirement to apply Turkish Accounting
Standards based on IFRS and audits based in international
Standards of Auditing (ISA). |
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