Recommendaiton for comperison and accounting of icare sukuk with FFMS and TMS/TFRS

The aim of this study is about how the accounting systematic in Turkey should be in the of sukuk standard published by the AAOIFI, which regulates standards in the field of interest-free finance and accounting. For this reason, by comparing the Interest FFMS with the TFRS, about how the accounting systematic should be in Turkey, of sukuk of the interest-free finance and accounting standards accounting records have been developed by making use of literature and practice. Islamic accounting and traditional accounting differ from each other in terms of their operational and qualitative characteristics. Although the development of Islamic accounting is based on recent history in our country, Islamic accounting has made significant progress in many parts of the world. With the development of Islamic accounting, the need for Islamic accounting standards has increased. Until today, traditional banks and Islamic banks have been subject to the same legal and institutional regulations in our country. For this reason, with the introduction of Interest-Free Finance and Accounting Standards published by AAOIFI into Turkish legislation, as of January 01, 2020, specified by the Capital Markets Board (CMB), participation banks have voluntarily implemented these standards. In this study, it is aimed to make records in accordance with the interest-free finance and accounting standards by examining the records of sukuk (lease certificate) transactions for TFRS.In the first part of the study, general information is given about the development of participation banking brought by Islamic accounting and international organizations that produce standards in the field of Islamic finance. In the second part, the definition of the concept of sukuk, its features, advantages and disadvantages, risks and was made comparison of sukuk with the bond used as a financial instrument in traditional banks. The functioning of sukuk is shown with models, tried to be reinforced within the framework of examples.The scope of the standards issued by AAOIFI on sukuk and translated into Turkish, its relations with TFRS were examined. In the third part, by taking the ownership-based lease certificate (icara sukuk) model as an example, the accounting records to should be made by the participation bank and the asset leasing company are by examining in accordance with TFRS 16 (Leases), suggested records were made in accordance with FFMS 8 (Icare and Icare Müntehiye Bittemlik). Then by the investors, accounting records to be made within the scope of FFMS 33 FFMS 34 are presented as suggestions.