Application Of International Accounting Standards Research Articles

THE IMPACT OF APPLYING INTERNATIONAL ACCOUNTING STANDARDS IN PUBLIC SECTOR ON QUALITY OF FINANCIAL REPORTS GOVERNMENTAL INSTITUTIONS (AFIELD STUDY ON GOVERNMENTAL INSTITUTIONS IN GEZIRA STATE – SUDAN)

This paper aimed to know the impact of applying international accounting standards in the sector. the year on the quality of financial reports and professional performance, and knowledge of the obstacles to the application of standards International accounting governmentinstitutions. The researcher used the analytical method Descriptive in the field study procedures by collecting information from its sources Primary and secondary data were collected by distributing a questionnaire specially prepared for this purpose. Purpose and distributed to the study population consisting of government institutions in Gezira State and the researcher used the statistical package for social sciences (spss) program. for analyzing the data of the study and testing satisfaction, and the researcher reached a group of results There is a degree of conceptual awareness in government institutions towards standards International accounting. There are also advantages in applying international accounting standards in institutions The most important of which is raising the efficiency of the accounting system and achieving the quality of accounting information Likewise, international accounting standards are applied in Governmental Institutions, and the application of International accounting standards on the quality of financial reports in government institutions. Its application leads to access to good financial reports and the delivery of financial reports that enable. Users are able to make rational decisions and the emergence of financial reports that are characterized by clarity and simplicity. And make the information contained in the financial reports more appropriate to the needs of users Likewise, there is an impact in the application of international accounting standards on the promotion of professional performance in Governmental institutions represented in the application of international accounting standards lead to promotion Professional performance within the institution and keep the accounting profession abreast of developments towards it and protect it practitioner. There is also a weakness in trade unions and associations that set standards Accountability in some countries and the lack of conviction of the responsible authorities in the application of accounting standards. International and insufficient financial resources for training is considered one of the most important obstacles Limit the application of international accounting standards. The study concluded a group of Recommendations, the most important of which is increasing the level of familiarity with international accounting standards by increasing Number of courses in the field of international accounting standards and work on developing the accounting profession In Sudan Governmental institutions‏ ,by activating the role of professional associations Responsible for the accounting profession. And the authorities concerned with the profession of accounting and auditing Work to remove obstacles that limit the application of international accounting standards.

Audit of Bank Lending Transactions Accounting when Applying International Standards

One of the most important areas of verification during auditing a bank is the audit of the funds placed in loans. The purpose of the audit is to confirm the accuracy of the information in the reports. The article deals with the problems of auditing the accounting of cash loan transactions. Taking into account that one of the objectives of the audit is to confirm the reliability of data in the accounts, the change in requirements for the formation of information on loans issued in the conditions of applying international accounting standards (IFRS) has predetermined the very need to expand and change accounting policies in this matter. It should set out how and when to determine and how often the fair value at which a loan should be measured should be reassessed. The transformation in the requirements for the formation of information in the accounting of loans issued by the bank, associated with the application of international accounting standards for financial instruments, predetermined the need to expand and change the accounting policy in terms of loans issued. In particular, the loan should be measured at fair value, therefore, the accounting policy should establish the procedure and methods for determining the fair value and the frequency of its revaluation. The procedure for recognizing and accounting for income and expenses related to credit transactions has changed. The article discusses methodological recommendations for the formation of an accounting audit program and accounting policy in relation to the bank’s credit operations in the light of the requirements of international standards. The purpose of this work was to form a methodology for auditing the accounting of credit transactions. As part of the study, the author proposed appropriate methodological recommendations that can be used in the development of accounting policy provisions, methods of internal control and audit of credit operations in conditions of modification of domestic accounting and application of international accounting standards, as well as in the training of specialists in accounting, internal control and audit. In the course of research, methods such as systematic analysis and logical generalization of legislative and regulatory documents, as well as special literature dealing with the audit of credit transactions were used. The proposed methodological recommendations for audit of credit operations can be used by auditors as well as by internal control and accounting service of the bank for analysis of accounting policy and its adjustment. The results of the research can be recommended for the development of accounting policy provisions, internal control methods and audit of credit transactions, in the conditions of modification of domestic accounting and the application of international reporting standards, as well as used for training specialists in accounting, internal control and audit.

Impact of Accounting Regulation in the Republic of Serbia on the Quality of Financial Reports for Strategic Management Purposes

The main purpose of the new accounting regulation that has been applied in the Republic of Serbia is the harmonization and improvement of the quality of financial reports for the needs of company management and external users of information (primarily, investors and creditors). Based on the above, the main goal of the research in this paper is to indicate whether the financial statements in the Republic of Serbia, which are based on the project of the Board for the Application of International Accounting Standards (IASB), can be compared with the financial statements in the European Union, and whether on that basis represent reliable informational support for strategic management. The research findings show that the immediate and exclusive application of IFRS in the Republic of Serbia has become a limiting factor in the informational power of financial reports for the purposes of strategic management. Based on the obtained research findings, it is possible to conclude that the accounting profession is to a greater extent dedicated to the traditional, classic requirements of the accounting function related to the preparation of financial statements, cost-financial control, while it is to a lesser extent dedicated to strategic management.

THE IMPACT OF MANDATORY ADOPTION OF INTERNATIONAL ACCOUNTING STANDARDS (IAS/IFRS) ON THE RELATIONSHIP BETWEEN ACCOUNTING ESTIMATES AND CASH FLOWS: AN EMPIRICAL STUDY

This paper aims to investigate the impact of the mandatory application of international accounting and financial reporting standards (IAS/IFRS) on the relationship between accounting estimates and future cash flows of Iraqi banks, the research sample listed on the Iraq Stock Exchange. The research sample included a large number of commercial banks listed on the Iraq Stock Exchange, including (18) banks for a ten-year time series from 2011 to 2020. The problem and hypotheses of the research focused on whether there was a discrepancy in the levels of accounting estimates and future cash flows for Iraqi banks. The research sample and whether the relationship between accounting estimates and future cash flows has improved in the period after the mandatory application of international financial accounting and reporting standards. The results show that there is a clear and large discrepancy in the difference between the current and future cash flows and the levels of accounting estimates during the research period as a whole and for the period before and after the mandatory application of international accounting and financial reporting standards. Importantly, the research results indicated that the predictive and explanatory power of accounting estimates has increased significantly after the application of international accounting standards in predicting future cash flows from the operational activities of Iraqi banks, the research sample. Accordingly, this may give a higher ability to managers in banks to make decisions more wisely and correctly in light of future expectations related to cash flows from their operational activities. The adoption of international accounting and financial reporting standards (IAS / IFRS) in the Iraqi environment will keep pace with the development taking place in the world, and therefore it is necessary to urge the regulatory authorities in Iraq to the compulsory application of accounting standards and international financial reporting at the level of various business sectors in Iraq Because of the great advantages that the standards enjoy, they will contribute effectively to increasing the quality of reports and financial statements and increasing the quality of accounting work as a whole, which is reflected importantly and positively on the level of the general economy of the country.

ASSESSMENT OF THE COMPLIANCE OF THE NATIONAL LEGISLATION OF CORPORATE REPORTING SYSTEM WITH THE REQUIREMENTS OF THE EUROPEAN DIRECTIVES

The establishment of a modern European standard corporate reporting system in Georgia, which represents the country's commitment under the "Association Agreement", is, in turn, an important stimulating factor for attracting additional investments, business development, creating new jobs and, ultimately, increasing social well-being. For the introduction of a modern corporate reporting system, one of the most important prerequisites is to bring the national legislation and regulatory norms into compliance with the relevant European regulations. Such is the Directive 2013/34/EU of the European Parliament and the Council - "On annual financial statements, consolidated financial statements and related reports of certain categories of enterprises" and Regulation N1606/2002 of the European Parliament and the Council of July 19, 2002 on the application of international accounting standards. This regulation establishes that in the member states of the Union, the consolidated statements of open joint-stock companies must be prepared in accordance with international accounting standards. In addition, member states have the right to allow or require the same obligation from closed joint-stock companies. Directive 2013/34/EU establishes that the requirements contained therein shall apply to the laws, regulations and administrative provisions of the Member States and shall apply to private and public companies which have share capital or whose owners are enterprises with share capital. The directive contains the definitions of the main concepts, the criteria for determining the size category of enterprises, as well as the list of organizations to be included in the category of Public-interest entity. The accounting standard to be used for each category of entity, the list of mandatorily prepared reports and the rules of their preparation and publication are established. The directive allows the member states to use simplified forms of reporting for small enterprises and provides specific approaches and instructions as to which articles/points should be combined to simplify the reporting forms. On June 8, 2016, the Parliament of Georgia approved the law on Accounting, Reporting and Auditing, however, if we look at the date of entry into force of the Association Agreement (July 01, 2016) and the date of adoption of the law, as well as the deadlines for the implementation of the main obligation defined by this law, we can conclude that Obligations under the association agreement are fulfilled within the relevant time frame. The law, as defining the categories of enterprises, as established the obligation of them to prepare and submit financial statements, as well as to publish them for public stakeholders, for enterprises of the first, second and third categories. And the enterprises of the fourth category have the obligation to submit to the Accounting, Reporting and Audit Supervision Service (SARAS) the statement prepared in accordance with the simplified standard intended for them. The rules of delivery of which to the interested person are established by the SARAS. It should be noted that the regulation of the law of Georgia, regarding the division of enterprises into categories, cannot include all economic subjects, and therefore, some of them remain outside the legal regulations, in particular, individual entrepreneurs who do not belong to the third, second or first category, are not included in the second category either. which does not comply with the requirements of the discussed directive.

Hedge Accounting: International Financial Reporting Standards e Normas do Banco Central do Brasil

Em 2008 foi anunciada a revisão do International Accounting Standard (IAS 39), segmentada em três etapas principais, a classificação e mensuração dos instrumentos financeiros, a introdução de uma nova metodologia para o cálculo de perda incorrida (impairment) e hedge accounting. Esse projeto resultou na publicação, em julho de 2014, na nova norma dos Instrumentos Financeiros, a IFRS 9. O objetivo deste estudo é analisar os principais impactos trazidos pela IFRS 9, frente aos normativos contábeis do Plano Contábil das Instituições do Sistema Financeiro Nacional (COSIF), no que tange à contabilização de hedge accounting. Realizou-se a análise dos normativos locais e internacionais, e de modo complementar um estudo de caso, por meio da análise das demonstrações contábeis brasileiras no Generally Accepted Accounting Principles do Banco Société Générale do Brasil, com data-base de 30 de junho de 2017. Os resultados da pesquisa mostram que, com as alterações trazidas pelo IFRS 9, maior detalhamento das informações sobre o hedge accounting passou a ser exigido, o que impacta consideravelmente o conteúdo e o formato atual das notas explicativas. Este estudo tem como principal contribuição a demonstração de que os requerimentos locais das divulgações dos instrumentos financeiros precisam de adequações.

Obstacles to the transition from the unified accounting system to the international accounting standards in the banking sector in the Kurdistan Region / Iraq

This research aims to study the obstacles of the transition from the unified accounting system to the international accounting standards in the banking sector and to reach the most important means that contribute to overcome these obstacles and also to know the importance of the application of international accounting standards. The research sample consists of a simple random sample which is (50) fifty of the preparers of financial statements and observers in the Banking Control Department of the Central Bank / Erbil. To achieve the research objective, t-test one sample, arithmetic mean, standard deviation and coefficient of variation were applied using SPSS. The results of the research through statistical analysis showed that there are a number of obstacles that limit the application of international accounting standards in banks operating in the Kurdistan Region of Iraq / Erbil, and also the results of the research showed a set of important means to overcome these obstacles.

Critical Success Factors in the Application of International Accounting Standards

It can be said that the world is beginning to be convinced of the need for international accounting standards that contribute to the provision of relevant, understandable and verifiable information and compare on an international level to different users to help them make rational decisions on the one hand and improve the level of integrity and transparency on the other. In this regard, the understanding and diagnosis of critical success factors may enhance the Department's ability to ensure the achievement of the desired objectives and the successful conduct of the proceedings and applications with different disciplines and areas, as well as improved ability to contribute to the prediction of the future situation, diagnosis of challenges and prioritization The Department's attention to the factors contributing to the achievement of the goals, Based on the foregoing, the research aims to identify and diagnose the critical success factors in the implementation of IPSAS and in a manner that enhances both scientific and professional knowledge in ensuring the successful implementation of IPSAS on the one hand and achieving its desired objectives on the other hand.Research is being conducted in the tertiary education Sector/Baghdad University with the adoption of personal interviews and a sample poll from the faculty in the accounting department, Faculty of Administration and Economics, University of Baghdad, , As well as a sample of professional accountants working in a number of private banks in the city of Baghdad, and a questionnaire form containing a set of questions embodying the contents of the critical success factors in the application of the standards, with a view to identifying the most critical factors that could be adopted to facilitate the implementation of accounting standards And success, with a view to achieving a clear and comprehensive vision of best practices relevant to meeting the application requirements an international perspective can be adopted and applied as a systematic road map that contributes to improving the quality of accounting procedures and applications. The analysis is supported by using the SPSS-10 for Windows program with the aim of explaining the extracted factors as reflecting the reality of critical success factors in the application of IPSAS, as well as the adoption of a few statistical methods to arrive at an integrated picture that contributes to the interpretation of the reality under The study. The research found a set of conclusions, the most important of which were that the critical success factors in the implementation of IPSAS were a combination of factors interlinked and integrated include both (change management requirements, awareness and information practices, risk management, organizational requirements, support Government, and finally the management commitment), and based on this, some of the proposals related to the activation and transfer of success factors have been referred to as one of the most important. The need for management to be attentive to the content of the sustainability of the obligation to provide an appropriate environment for the adoption of IPSAS implementation. 2. Establish a competent national authority to oversee the evaluation of IPSAS implementation and provide advice and appropriate solutions are available in a timely manner. 3. Adopt common accounting language that is universally understood and accepted.

The impediments to the application of International Financial Reporting Standards from the point of view of academics and professionals in the Sudan

The study the impediments to the application of International Financial Reporting Standards from the point of view of academics and professionals in Sudan, where the problem in question and the main obstacles to the application of international accounting standards in Sudan? Branched out by a number of questions including; is there a specific mechanism to commit companies in Sudan to apply international accounting standards? Is the organization of accounting and auditing in Sudan identify training needs necessary to complete the process of transition to international standards? Do installations in Sudan is ready financially and to complement the process of transformation? What is the role of the accounting curricula to improve the application of International Financial Reporting Standards?. The study aimed at the statement of the challenges and constraints facing the application of International Financial Reporting Standards in the Sudan, and to clarify the mechanism for the application of international standards and the associated requirements of joining the International Federation of Accountants (IFAC) system, and the reflection of the application of international standards of accounting and auditing the accounting curriculum development in higher education institutions (the impact on accounting taught scientific movement in accounting). The inductive and deductive approach was used, as was the use of the questionnaire as a tool for data collection. The researchers reached to many results, the most important factors affecting the internal environment directly impact in the application of International Financial Reporting Standards these factors in many of the most prominent elements of the administrative policies and the size of the business of the company and its capital, and the prevailing culture, the size of the funding for the transformation process and the application of international standards and the extent of readiness as well as the experiences and competencies necessary accounting full transformation. The failure to meet the requirements of the external environment was largely on the application of international accounting standards, the most important of these requirements in the commitment to the application of standards as a condition of joining the International Federation of Accountants (IFAC) in accordance with the statements of membership obligations (SMO,s) that development and performance, add it to join the World Trade Organization, global and regional markets. The study also recommended many of the recommendations, including attention to the training of accountants, and review of accounting curricula in higher education

The association between accounting standards, the legal framework and quality of financial reporting

The field of accounting is regulated by legal, professional or internal regulations. Accounting provides useful information to decision-makers. In the way the business environment has been changed, so have changed the accounting standards governing the presentation and disclosure of information. For many of the world's capital markets, the application of international accounting standards is required for the financial statements of the so-called public interest. The aim of this study is to highlight the regulatory framework referring to the international accounting standards applicable in the world as well as in our country. The basis of this research makes the so called 'desk' research of the relevant academic literature dealing with the standardization in accounting, including the legal and professional regulations governing this area. In addition, the comparative method was used in the paper - there has been researched which level of the implementation of the international accounting standards was reached both in the private and public sector.

Application of international accounting standard-16 in a public company with predominantly agricultural activities

This work suggests the existence of a number of advantages for companies that have opted for the application of International Accounting Standards. Their application allows fair reporting, which is extremely important for countries in transition, as well as for those countries that have not applied IAS. The authors carried a study related to full application of IAS 16 to 114 companies, of which 10 are public and 104 other companies are from the wider area of Novi Sad, in the period 2010–2015. In addition, the study of the case of public companies is done in order to demonstrate the situation before and after the valuation of assets and equipment as at 30 June 2012. The state after 3 years is fairly shown on 30 June 2015, all in order to make valid conclusions regarding fair reporting of the public enterprises. It can be concluded that the application of IAS 16 has multiple benefits by companies that fully apply fair reporting in its operations.

Ten Years of Mandatory Use of IFRS in the European Union: A Status Report

This article reports on the result, 10 years later, of the International Financial Reporting Standards (IFRS) adoption choices allowed under the EU's Regulation No. 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the Application of International Accounting Standards. The regulation, which took effect in 2005, allowed country‐level variations in the completeness, timing, and scope of implementation. We provide a background of the implementation choices that the regulation allowed, and report the choices made by individual EU member states. Next, because significant differences in the extent of IFRS implementation exist, we use the European Commission's most recent IFRS implementation data to provide an up‐to‐date analysis of which countries actually can be considered similar with respect to their accounting practice. © 2016 Wiley Periodicals, Inc.

Assessing the Application of International Accounting Standards (IAS) in Jordan: Factors Explaining Non-compliance

The main objective of this study is to assess the application of International Accounting Standards (IAS) in Jordan. The main purposes of this study are to: (1) present an analyzed study of the general concepts of IAS; (2) clarify the suitability of the IAS in Jordan and the possibility of using them as guidelines in adapting local standards; and (3) state the deficiency aspects and difficulties facing Jordanian firms in applying these standards in local businesses. A questionnaire is designed for these purposes. The sample is restricted to accountants, financial executives, and professional members of the Jordan Association of Accountants and Auditors. We used the Statistical Package for Social Sciences (SPSS) to analyze the data and answer the research questions. Descriptive statistics are the main tests used in this study. The results indicate that IASs are necessary to be applied by Jordanian companies, since the advantages of applying IAS in Jordan are seen to be more than its disadvantages, mainly in the scene of improving the information content of financial statements. The results also indicate that the compliance with IAS will be of great benefits to shareholders and the stock market comparing to its benefits to top management and board members. Auditors, accountants, and financial executives argue that government agencies in Jordan should enforce and supervise the implementation of IAS in Jordan.

Large Canadian companies and SMEs in regards to international accounting standards (IFRS): results of an empirical study

This study aims at examining the structural and behavioural contingency factors, as well as the characteristics of accounting information relating to the application of international accounting standards for large Canadian companies and SMEs since Canada's transition to reporting under IFRS in January 2011. The literature review has allowed us to develop a conceptual model and to provide a rationale for the direct links established between these new variables. The empirical study was conducted with New Brunswick companies. A total of 94 companies were surveyed. In addition, the quantitative method was used in order to test cause and effect relationships as part of our conceptual model. The findings show that the structural and behavioural contingency factors have a statistically significant direct effect on the application of international accounting standards. Finally, these results also reveal that the characteristics of the accounting information quality have a direct effect on the presentation of financial statements in accordance with the IFRS's standards.

Improving the Methodological Support for Recording Expenditures and Outcomes of R&D

At present, the evaluation of the results of innovation is important when choosing promising investment projects for all levels of management—from economic entities interested in the implementation of innovative strategies to federal authorities responsible for science, technology and innovation policies in the country. At the same time, great importance in our country is given to an innovative way of development of enterprises that perform research and development activities (R&D), as evidenced by the increase of the share of innovative research nearly 2.5 times over the last five years. Successful intensification of R&D process is due to the creation of innovation centers: “Skolkovo”, “Technopark-Sarov”, Technopark of Novosibirsk Akademgorodok, “Technopark-Strogino” and others that are designed to maximize territorial cohesion of science, industry and commerce. The existing regulatory framework for R&D accounting does not allow to defining a clear distinction between “research” and “development” and therefore regulates only the end result of these activities. This leads to a distortion in the formation of expenditures for R&D and unreliable monetary terms relating to their outcomes. In addition, in the current practice, the problems of application of international accounting standards still remain open, which adversely affects the attraction of foreign investors. As a solution to the existing problems, it is necessary to use the fundamental principle of national accounting) time definiteness of the facts of expenditures and outcomes of R&D—when making professional judgment. The unresolved problems in the recognition of expenditures and outcomes of R&D in accounting and reporting result in an increased interest in conducting special studies to find effective methodological support for innovation management that meets the different needs of users of financial statements.

Finansijsko izveštavanje u hiperinflatornim privredama prema međunarodnim računovodstvenim standardima rezime

Hyperinflationary economic conditions were once dictated adapting our accounting regulations require that the revaluation of balance sheet positions at balance sheet date gain real financial statements as a basis for making economic decisions. Financial reporting as a basis for successful operations of each entity requires expression of the events following the transaction of business and influenced the change of assets and capital. Taking into account the amendment of the value of money as the basic settings Financial preserving capital substance in this inscription we will deal with the application of international accounting standards for reporting purposes under the conditions of hyperinflation.

STANDAR AKUNTANSI INTERNASIONAL: HARMONISASI VERSUS KONVERGENSI

<p><em>Globalization brings changes to the capital markets and business operations across borders. State sector in a multinational company is required to make financial reports that can be received throughout the world, but in every country have their own accounting standards are of course different between a country's accounting standards with other countries. For it requires the international accounting standards, so that financial disclosures made by a company in a country multinational globally acceptable. Application of international accounting standards is very difficult because of differences in both legal, environmental, social and economic conditions between one country to another and to bridge it then requires the process of harmonization and convergence. There is a difference between the process of harmonization and convergence of international accounting standards. Only at the stage of harmonization, alignment of accounting standards issued by standard-setting bodies in each country with International Accounting Standard (IAS), while convergence is the next stage of the harmonization of accounting standards which are expected in the context of international standards aimed at eventually there would be only one standard. The process of harmonization and convergence of international accounting standards is not easy to just run, many obstacles and criticisms of the process of harmonization and convergence in which the harmonization and convergence is only suitable for large companies are multinational companies rather than small and medium enterprises, although there are also advantages that can be obtained from the harmonization and convergence of international accounting standards, among others comparable financial reporting, increase transparency, reduce costs and increase global investment capital. </em></p> <p><em> </em></p> <p><strong><em></em></strong><em></em></p>

Interaction of Net Present Value, Cash Flow and Financial Statements

Adjustment of the specific national economic system to the economic system of the European countries implies abandoning traditional economic methods and implementation of the standards used in EU. It equally applies to economic, market, financial and other standards among which are the accounting standards.This fact is important from the financial analysis` point of view, because financial indicators cannot be compared nor can be necessary analysis conducted without application of international accounting standards. Those financial indicators and analysis form the basis for making business decisions. The application of international financial reporting standards changes presented financial position on a large scale, that is investment potential, net present value and application of cash flow. This is discussed in the paper on the examples from Croatia and Bosnia and Herzegovina.Applying different accounting standards results in changes in presented business results, in terms of profitability, financial opportunities and capabilities, assessment of credit-worthiness and other indicators of financial position and profitability.The paper elaborates the application of the present value method with the present value serving as goal value in net assets valuation, showing the difference in data obtained with traditional historical cost.

Harmonization of Slovenian Accounting Standards with International Financial Reporting Standards

With accession to the European Union Slovenia had to adopt the European Union’s legal framework, including law relating to undertakings, which among various pieces of legislation comprises also Accounting Directives, i.e. Fourth Council Directive and Seventh Council Directive, and Regulation (EC) No 1606/2002 on the application of international accounting standards, issued by the International Accounting Standards Board (hereinafter IASB). The new Companies Act (ZGD-1), which again includes basic accounting provisions, provided the basis for the second amendment of the Slovenian Accounting Standards (hereinafter SAS), which entered into force on January 1, 2006. It is still specific to SAS though that they are not focused exclusively on external financial reporting of past performance as for example International Financial Reporting Standards (hereinafter IFRS), which are issued by IASB. SAS derive from the fundamental idea that the external financial reporting should also have an impact on the fundamental accounting system with a specific solutions concerning internal reporting. In the field of external financial reporting SAS are almost completely harmonized with IFRS. In order to achieve this level of harmonization the profound amendments of SAS were needed in the following cases: property, plant and equipment, investment property, intangible assets, financial assets and last but not the least some changes in the financial statements.

Exploring the Effect of Foreign Currency Volatility on Foreign Capital: The Case of Turkey

This paper, explores devaluation as a reason for the lack of long term foreign capital investments in countries such as Turkey. It touches the application of International Accounting Standards in Turkish Capital Market as Turkey’s being a candidate for European Union. The detrimental consequences of applying existing taxation rules on the financial statements of foreign invested capital in Turkey is investigated by means of a case study. Suggestions are made for tax rule change in order to attract more foreign investment flow to Turkey.