Investigation of world and Turkey practices related to accounting the new generation financial products in banking and implementation proposal for Turkey

Derivative products are used both as a means of hedging and speculative purposes. Today, derivative products are traded both as a means of hedging and speculative purposes. The forward contracts, which first started to be traded in over the counter markets, developed further with the formation of the organized derivative markets and helped futures, options and swaps emerge. Globalization of markets, technological improvement and increase in risk factors made the usage of these products become widespread. In recent years, a new generation of derivatives and other financial instruments besides classic derivative products has become widespread. The banking sector is the most sensitive sector to the development of the derivative products and new generation financial instruments sector as a sector that uses the most. In this context, for the banking sector, increased use of derivatives and new generation financial instruments, has led to problems for the accounting of these products. In accordance with IAS and IFRS, the standards for derivative products were determined in the world and in our country. In contrast, there is no clear work, especially in our country for the implementation of the regulations on accounting for the new generation of financial products. In this study, a new generation of financial products is primarily introduced along with derivatives. Then, the relevant accounting regulations in international level, in major countries and in our country are offered. After giving examples of derivatives accounting in banks in framework of the regulations, the place of the new generation of financial instruments in accounting system in banks and proposals for accounting of them is presented in the last chapter. Key Words: New Generation Financial Products, Derivative Products, Accounting for Derivatives and New Generation Financial Products