The appraisal of commercial assets is defined as the valuation and determination of the existing assets and liabilities of the entity.
The Tax Procedures Code first defines the general methods (cost of acquisition, registered value, etc.) by which a firm's assets and liabilities are to be valued. It then specifies the criteria according to which each type of asset/liability is to be valued.
Accordingly, inventory and fixed assets are valued at cost while payables and receivables denominated in Turkish lira should be valued at their registered value. Assets and liabilities denominated in foreign currency should be translated using the exchange rate announced by the Ministry of Finance (buying rate announced by the Turkish Central Bank, prevailing at the balance sheet date), and cash should be appraised at nominal value. For the valuation of the Turkish or foreign securities, purchase value is used.
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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 Mustafa Camlica, Tax Manager on tel: +90 212 232 1210, fax: +90 212 230 8231, or e-mail mustafa.camlica@arthurandersen.com or enter a text search 'Arthur Andersen' and 'Business Monitor'.
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