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ly be assessed and the method applied for the previous year should be
preserved.
As per articles 79 and 80, the assessment of the fixed assets shall
also be made according to the Turkish Accounting Standards.
The “principle of true and fair view” is accepted by article 515 of
NTCC. According to this principle, the financial statements of a joint
stock company should set forth all assets, debts and obligations, equi-
ty and the results of its activity in an understandable, comparable,
transparent, trustworthy manner as convenient as to its needs and scope
of activity in accordance with the Turkish Accounting Standards and
should reflect the truth exactly, adequately and same as original.
In light of the above provisions, it seems possible to choose “true
view method” for the assessment of the asset values in accordance with
the accounting principles. On the other hand, since the secondary leg-
islation with respect to the accounting principles is still pending and
the link between the Turkish Accounting Standards and tax accounting
system as per the Turkish tax procedure law has not yet been clearly
defined, the reassessment of the fixed assets as per the “true view
method” should be re-examined after those steps are taken.
The Consequences of the Non-Compliance
In the event of a capital increase by way of re-assessment of fixed
assets contrary to reiterated article 298 of TPL and article 462 of
NTCC; the following consequences may occur:
1- Non-approval of the Capital Increase Resolution by the
Ministry Commissar or Non-registration of the Capital
Increase Resolution by the Trade Registry:
Even though a re-assessment of the fixed assets was made before
the court, the excessive value was recorded to the balance sheet as
value increase funds and a capital increase was made by addition these
funds to the share capital, since such a resolution will be contrary to
the law, it is possible for the Ministry of Customs and Trade commis-
sar not to approve the resolution or for the second step, it is also pos-
sible for the trade registry not to register the resolution.
COMMERCIAL LAW
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