- Banking and insurance companies
- Private finance houses
- Leasing and factoring companies
- Mutual funds, institutions, and investment trusts.
The basic elements of the uniform chart of accounts are as follows:
- Accounting should be made according to twelve fundamental concepts given in the communique as:
1. Social responsibility concept 2. Business entity 3. Going concern concept 4. Matching concept 5. Monetary unit concept 6. Cost concept 7. Objectivity and authentication through documents 8. Concept of consistency 9. Full disclosure concept 10. Concept of prudence 11. Materiality concept 12. Substance over form concept
- The balance sheet starts with the items that are most liquid. Non-current items are listed at the bottom. (This system is contrary to the EC balance sheet model.)
- There are two alternatives for cost entries. The "A" type tracks each transaction according to three classifications: function, type of expense, and cost center. The "B" type tracks the costs according to the type of expense. At year end, the accumulated data should be reclassified according to function. The "B" type is for small businesses whereas "A" is for medium and large businesses.
- There are seven financial statements to be submitted to tax authorities which are obligatory for companies whose net sales are more than TL 50 billion or whose balance sheet total is more than TL 25 billion. The financial statements are as follows;
1. Balance sheet 2. Income statement 3. Cost of sales table 4. Fund statement 5. Cash flow table 6. Profit appropriation table 7. Statement of changes in shareholders' equity
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Murat Ece on Tel: +90 212 2321210 (ext:210), Fax: +90 212 2308291 or e-mail: murat.ece@arthurandersen.com or enter a text search 'Arthur Andersen' and 'Business Monitor'.