An assesment of financial derivatives in terms of international accounting and financial reporting standards and a case study

In recent years, the amounts of derivative products, an important place in the financial markets, have increased in the financial statements by companies due to the widespread usage to protect and adapt to changing market conditions. In order to be able to accurately and properly reflect these tools to the information users, how to recognize them in financial statements and reports has become an important issue. Therefore, various arrangements have been made for the accounting of these products. In order to be able to accurately and properly reflect these tools to the users of information, how to recognize them in financial statements and reports has become an important issue. Therefore, various arrangements have been made for the accounting of these products. In this study, the sections of derivatives of the International Accounting and Financial Reporting Standards in effect both in interntional area and correspondingly in Turkey were analysed. In addition, the footnotes of the financial statements disclosed to the public by the companies which shares are traded in Borsa İstanbul were examined and which types of derivatives preferred in their activities were revealed. A case study that how the derivative product transactions of a manufacturing company that is operating with these tools are accounted for under the standards by taking into consideration the preferred types of derivative instruments were explained. Keywords: Financial derivatives, the ınternational accounting and financial reporting standards; IAS 32, IFRS 9, IFRS 7, IFRS 13, IAS 21