Policies related to financial instruments' recognition: A research for BIST financial sector

The purpose of the study is to determine the disclosure degree of the accounting policy related to financial instruments of the firms listed in financial sector in BİST index, and put forward the factors effecting accounting policy related to financial instruments. In the study, according to requirements of financial instruments standart, an accounting policy disclosure index related to financial instruments has been developed in order to determine the disclosure degree of the accounting policy, and a disclosure degree has been determined according to whether the firms in financial sector explain the statement in the developed index or not. The factors such as firm's size, leverage, the activity operation in sector, being listed in foreign stock exchange and type of audit firm, are thought to effect the accounting policy. However, discriminant analysis and logistic regression have been used in order to determine which one of these factors effect the accounting policy. At the end of the study, the disclosure degree of accounting policy of the firms in financial sector related to financial instruments has been determined, and found out that there is a positive relation between the disclosure degree and leverage rate, but negative relation with activity operation in sector. On the other hand, in terms of statistic, a meaningful relation could not be found with the other factors such as firm's size, being listed in foreign stock exchange and type of audit firm. Keywords: Financial Instrument, Accounting Policy, Financial Sector