|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||IFRS Standards adopted as Turkish Accounting Standards are required for listed companies, financial institutions, and other public interest entities.|
|IFRS Standards are permitted but not required for domestic public companies|
|IFRS Standards are required or permitted for listings by foreign companies||Required.|
|The IFRS for SMEs Standard is required or permitted||No.|
|The IFRS for SMEs Standard is under consideration||No.|
Kamu Gözetimi, Muhasebe ve Denetim Standartları Kurumu (KGK)
[Public Oversight, Accounting and Auditing Standards Authority]
KGK is responsible for setting accounting and auditing standards in compliance with international standards, approving and registering auditors and audit firms, inspecting their activities and taking appropriate action (enforcement authority) against the auditors and audit firms that violate audit provisions and KGK's regulations.
Turkey has already adopted IFRS Standards for the financial statements of all public interest entities. Specifically, the following entities are required to use IFRS Standards:
Entities whose securities are traded in a regulated market, intermediary institutions, and portfolio management companies were permitted to use IFRS Standards as of 2003 voluntarily and have been required to use IFRS Standards since 2005.
Banks have been required to use IFRS Standards since 2006.
Financial lease companies, factoring companies and financing companies have been required to use IFRS Standards since 2007.
Insurance, reinsurance and pension companies have been required to use IFRS Standards since 2008.
The KGK took a Board decision, which was published in the Official Gazette, in which public interest entities are required to apply IFRS Standards in their separate and consolidated financial statements. Thus, asset management companies, 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, currency offices, precious metals brokerage houses and precious metals producing and marketing companies which are members of Borsa Istanbul have been required to apply IFRS Standards in addition to above mentioned companies since 1 January 2013.
Other companies that are not included in the list specified in the decision are permitted to apply IFRS Standards.
Yes. Required for some and permitted for all others. See the Commitment to Global Financial Reporting Standards section above.
IFRS Standards as issued by the Board.
Turkish Financial Reporting Standards (TFRS), which are in full compliance with IFRS Standards.
KGK publishes in the Official Gazette as communiqués TFRS, which are in full compliance with IFRS Standards.
KGK continuously updates TFRS based on the new or amended IFRS Standards.
Yes, they are translated into the local language.
Pursuant to the copyright waiver agreement with the Board, the KGK translates IFRS Standards into Turkish based on the Translation Policy of the Board. This process ensures an ongoing translation of the latest updates in IFRS Standards into Turkish.
KGK developed the Financial Reporting Standard for Large and Medium Sized Entities (BOBI FRS) based on the requirements in the EU Accounting Directive, the IFRS for SMEs Standard, FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and local Turkish GAAP and published it in the Official Gazette on 29 July 2017. BOBI FRS is effective from the reporting periods beginning on or after 1 January 2018.
BOBI FRS is the financial reporting framework for entities, which are not required to apply TFRS but are within the scope of entities subject to audit.
BOBI FRS was designed to meet the financial reporting needs of large and medium sized entities and is a standalone standard with 27 sections and less than 240 pages. It provides a cost-effective way of financial reporting for medium-sized entities and additional obligations were introduced for large-sized entities in line with the "think small first" approach in the EU Accounting Directive.
The main differences between BOBI FRS and the IFRS for SMEs Standard (2015) are summarised as below. In BOBI FRS:
The IFRS for SMEs Standard of July 2009 has been translated into Turkish.