Examination of the financial statements of BİST 30 companies within the scope of TAS 37 provisions, contingent liability and contingent assets standard

The reports of enterprises subject to full set of TAS / IFRS within the scope of TAS 37 Provisions, Contingent Liabilities and Contingent Assets Standard are of great importance for financial statement users to be able to make a sound assessment about the possible future liabilities and assets of the enterprise. In particular, considering the situation where provision and contingent liabilities may pose a risk to the company in the future, it is considered that the fair presentation of these items is necessary for the evaluation of the continuity of the enterprise. The fact that provisions are frequently included among key audit issues in independent auditor reports in Turkey reveals how important the issue is. In this study, which aims to analyze the information presented by the companies included in the 2018 BIST 30 index, which includes the 30 companies with the highest transaction volume and market value in Turkey, regarding the provisions, contingent liabilities and contingent assets, which constitute the scope of TAS 37, in the financial statements of the years 2014-2018. Based on the financial statements of the companies traded in the BIST 30 index, the reporting within the scope of TAS 37 has been examined in detail. In this study, under which titles the provision are reported in the financial statements of the companies in question, which types of provisions are included in the financial statements of the companies more, which types of provisions are included more in the financial statements on a sectoral ,whether the independent audit company changes of companies cause changes in the reporting of provisions, The information about companies's contingent liabilities and contingent assets is included in the footnotes of the financial statements. As a result of the examination of the financial statements of the companies, it is seen that the provision items that companies mostly include within the framework of TAS 37 are warranty provisions, lawsuit provisions, general provisions, cost provisions and other provisions. Regarding the contingent liabilities of the companies within the scope of the research, it has been determined that in their financial statements, 'the lawsuits filed against the company and the guarantees given' items are frequently included. Regarding contingent assets, it has been determined that the items most featured in the financial statements are the guarantees received and the lawsuits filed in favor of the company.