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Innovations in the New Turkish Commercial Code Concerning
Financial Statements and Reserve Funds
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Prof. Dr. H. Ercument Erdem
Financial statements are among the matters subject to major
amendments with the New Turkish Commercial Code numbered 6102
(“New TCC”). The New TCC has adopted the Turkish Accounting
Standards (“TAS”) which are compatible with International Financial
Reporting Standards (“IFRS”), which were not regulated under the
Turkish Commercial Code numbered 6762 (“TCC”). Consequently,
the financial statements will be prepared in conformity with the finan-
cial standards adopted by industrialized countries and uniform in prac-
tice will be achieved. Additionally, competition in international mar-
kets is aimed at and Turkish markets will be more globalized. As per
reserve funds, basic principles in the TCC have been maintained with
the New TCC.
In General
Financial statements are defined as presentations of the financial
status and performance of an enterprise. Financial statements of gen-
eral purpose aim to provide information about the financial status, per-
formance and cash flows of an enterprise in order to facilitate the adop-
tion of financial decisions of large masses. Additionally, financial
statements show the efficiency of usage of resources entrusted to direc-
tors.
Financial statements include information about assets, foreign
resources, equity, profit and loss; modifications in equity and statement
of cash flow of the enterprise.
Pursuant to Article 514 of the New TCC, the financial statements
and annual activity report of the company shall be prepared by the
Board of Directors (“BoD”). The BoD shall prepare the financial state-
ments and its appendices as well as the annual activity report regulat-
COMMERCIAL LAW
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Article of February 2012