The results of the Standardization of TFRS 8 Activity Division: An application on the IMKB 100 companies

As consequence of the larger global trade volume, companies are now operating in multiple business activities. As consequence of this development, the need for the characterization of the company activities to evaluate them has been arisen. During the process of foundation of the international financial reporting standards led by the IASB and FASB, the UFRS 8 standard built up by bringing the UMS 14R and SFAS 131 standards together was issued to be in effect after 31st December 2008. It was stated that the TFRS standard issued simultaneously in Turkey, have positive contribution to the divisional reporting when compared to the TMS 14 standard. Finally, it was concluded that TFRS 8 standard is expected to promote application of divisional reporting extensionally in Turkey and it has been already observed that there is certain awareness toward this standard. Publicly announced division and increasing amount of the financial information is now allowing the financial table users to make analysis in more detail. Despite the several shortcomings of the TMS 14 standard, it substantially contributed to the development of the divisional reporting culture in Turkey.