Board decision from the Public Oversight, Accounting and Auditing Standards Authority on implementation scope of Turkish Accounting Standards (TMS).

The concerning board decision has been issued by the Public Oversight, Accounting and Auditing Standards Authority and has been prepared based on the articles 88 and 1 (provisional) of the Turkish Commercial Code dated 13.01.2011 no.6102 and the 9th, 26th and 1^st (provisional) articles of the Statutory Decree no. 660 dated 26.09.2011. The Decision was published in the Official Gazette dated 19.09.2018 no. 30540. 

Regarding the 3^rd article within the Decision, it has been decided that the Turkish Financial Reporting Standards will be implemented during the preparation of consolidated financial tables of the companies, institutions and enterprises indicated in the attached list.

The attached list referred in the Decision is as follows:

1. As per the Capital Markets Law no.6362 dated 6.12.2012, enterprises subject to the regulation and supervision of the Capital Markets Board;

a. Joint stock companies with capital markets instruments that are traded in a stock exchange and/or in other organized markets,

b. Investment companies,

c. Companies with unlimited liabilities,

d. Portfolio management companies,

e. Mortgage finance companies,

f. Housing and asset finance funds,

g. Asset leasing companies,

h. Central swap companies,

i. Global custody companies,

j. Data storage companies,

k. companies with capital markets instruments that are not traded in a stock exchange and/or in other organized markets, however meeting at least two of the three criteria provided below for the companies considered as publicly listed within the scope of Capital Markets Law:

• with total assets of TL 15 million and over
• annual net sales revenue of TL 20 million and over
• with a headcount of 50 and over

2. Among enterprises that are subject to regulation and supervision of the Banking Regulation and Supervision Agency as per the Banking Law no.5411 dated 19.10.2005.  

a. Banks

b. Financial leasing companies

c. Factoring companies

d. Financing companies

e. Asset management companies

f. Credit rating companies

g. Financial holding companies

h. Companies with qualified share on financial holding companies as its defined within the Law no.5411,

i. Payment companies and digital cash companies

3. Insurance, reinsurance and pensions companies operating under the Insurance Law no.5684 dated 3.6.2007 and Private Pension Savings and Investment System Law no. 4632 dated 28.03.2001.

4. Authorized companies permitted to operate within the markets of Borsa İstanbul, intermediaries of precious metals, joint stock companies dealing with activities of precious metal production or trade.

It has been decided that the Financial Reporting Standards for Medium and Large Scaled Enterprises will be used during the preparation of consolidated financial tables of companies, institutions and enterprises that do not exist within the attached list and subject to independent audit, however depending on the intention of those companies, institutions and enterprises, Turkish Financial Reporting Standards may be implemented as well.

Pertaining to the Article 4 of the Decision, the board decision regarding the implementation scope of Turkish Accounting Standards no.26 dated 21.08.2014 published in the Official Gazette dated 26.08.2014 no.29100 has been repealed.