The Uniform Accounting System is applied in Turkey under the Tax Procedure Law No. 213. Such a system is compulsory for real persons and legal entities keeping books on the basis of balance. These enterprises and corporations must comply with the methods and principles set forth under these communiqués.

Companies subject to the Uniform Accounting System are obliged to prepare inancial statements such as balance sheet, income statement, costs of sales statement, fund lows statement, cash low statement, statement of proit distribution table, and statement of change in shareholder’s equity.

However, diferent accounting techniques are applied by banks and insurance companies, private inancial institutions, inancial leasing companies (including those operating in the ield of factoring), securities investment funds, intermediary irms, and investment partnerships depending on the diferences in their ield of activity although they keep their books on the basis of balance.

The companies with such special status will keep their books in accordance with the Uniform Account Plan, the provisions of the Turkish Tax Law, and Turkish Commercial Code pursuant to the Turkish Accounting Standards/Turkish Financial Reporting Standards (TMS/TFRS). However, the ones subject to audit and those mentionedabove must prepare their individual and consolidated financial statements in accordance with TMS/TFRS.