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ed under the TAS with regards to the previous accounting period with-
in the first three months of the accounting period following the balance
sheet date, and present to the General Assembly (“GA”). With the said
article, the financial statements would be presented to the GA within a
certain time period
True and Fair View Principle
Article 515 of the New TCC regulates the true and fair view prin-
ciple. This principle with Anglo-Saxon origins has been included in the
New TCC as “honest reflection”.
The true and fair view principle envisages that the financial state-
ments shall reflect the financial status of the company in a true, accu-
rate and fair manner and in accordance with the facts. This article reg-
ulates that the financial statements shall be prepared in compliance
with TAS. Financial statements shall be complete, comprehensible,
comparable to previous years, compatible with needs of the enterprise,
transparent and trustworthy. Therefore, the conditions of the company
shall be reflected clearly and in a comprehensible manner. It is possi-
ble to say that the financial statements take a picture of the financial
status of the company.
Annual Activity Report of the BoD
Article 516 of the New TCC regulates the annual activity report.
The annual activity report presents the activities of the company for the
relevant year and its financial status in all aspects. In the activity report,
the activities of the company and financial status shall be reflected
accurately, completely, directly, fairly and in accordance with the actu-
al status. The justification of Article 516 also states that the annual
activity report shall provide a true view in accordance with Article 515 of
the New TCC, and reference is made to the true and fair view principle.
In the annual activity report, the financial status of the company
shall be evaluated in accordance with financial statements. The BoD
shall also state in the report the details about the company’s develop-
ment and the risks that might be encountered.
Article 516/2 of the New TCC regulates the key elements that
should be included in the annual activity report. Pursuant to the said
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NEWSLETTER 2012