Participation of the Accounting System of the Central Bank of The Republic of Turkey to the European Central Bank

Financial reports of the central banks, due to their characteristics, have significant impact on economy. Particularly, central banks balance sheets? magnitude and composition give direction to economy, but at the same time this magnitude and composition are shaped by the economic developments. However, it?s apparent that financial reports of central banks have not been subject to numerous studies, because of their different formats and small number of users compared to other commercial reports; although they are essentially identical.The aim of this study is to give information about the legal and structural harmonization efforts of the Central Bank of the Republic of Turkey necessary for accession to the European System of Central Banks and to compare the existing accounting practices and financial reports of the CBRT and the European Central Bank.The first chapter deals with the history of the European Union and the history of relationship of Turkey and the EU, the ESCB and the legal and structural harmonization efforts of the CBRT of Turkey necessary for accession to the ESCB and accounting organizations of the CBRT and the ECB.The second chapter explains the basic acconting concepts on which the accounting applications of the CBRT and the ECB are based on, the basics of the financial reports and the principals of accounting and valuation.The third chapter basically analyzes the financial reports. Balance sheets of the CBRT and the ECB have been handled in detail; and other daily, weekly and monthly positions have been briefly examined. Additionally, the formation of the analytical balance sheet of the CBRT has been concisely explained.In the fourth chapter, the accounting practices of the CBRT and the ECB have been compared and the similar and divergent applications in terms of accounting and valuation principals have been analyzed.In the final chapter, as a case study, the CBRT Balance Sheet dated 31.12.2008 and the CBRT Income Sheet of 2008 have been adapted to the Balance Sheet and the Income Statement of the ECB.