The effect of diffrerences of TFRS-9 and TMS-39 assessment methods on net working capital: implementation on companies subject to sustainability index

Abstract

Purpose- Turkey Financial Reporting Standard-9 Financial Instruments Standard of (IFRS-9) 01.01.2018 Date of the ring was mandatory for the reporting of public companies. Turkey Accounting Standard-39 Recognition and Measurement Standard (TAS-39) brought a number of new regulations have emerged. Changes in the valuation of financial instruments are considered. Stata 14.1 Panel analysis was used to analyze the fair value of financial instruments and their effect on net working capital in firms subject to sustainability index. Methodology- This study was conducted in companies subject to the Sustainability Index between 2005-2018 using panel analysis in the Stata 14.1 program. Findings- According to the results reached, it has been determined that the increase in fair valuation in financial instruments has affected the net working capital. It was also determined that it caused an increase in the financial debt variable that we put as a dummy variable. Conclusion- The fair value method is important in evaluating financial instruments so that companies can effectively manage their asset and resource structures. As long as the companies can pay their short term debts and manage their short term assets correctly, it is thought that they can play a role in the market and compete with other companies. At the same time, the meaningful relationship between firms ability to pay their debts and their fair value is an expected result