Examination of the change of earnings quality with International Accounting Standards (IAS) / International Financial Reporting Standards (IFRS) in terms of companies whose shares are traded on the Borsa İstanbul

The financial statements produced within the framework of accounting systems and standards are used by the users of financial information in various evaluations about the companies. With the globalization of capital, the need to produce financial statements with an international common accounting language has emerged. The accounting system and standards applicable to all countries offered by International Accounting / Financial Reporting Standards (IAS / IFRS). In Turkey, Turkish Accounting Standards Board (TMSK) translated IAS / IFRS to Turkish and issued under the name Turkey Accounting / Financial Reporting Standards (TAS / TFRS). Today, these standards are published and updated by the Public Oversight Accounting and Auditing Standards Authority (POA). The most important decision criteria of the users of financial information is the reported company earnings. Managers can influence the reported earnings to the extent permitted by the accounting standard applied in the legal framework. In this study, the concept of "earnings quality" is addressed by the characteristics of the reported earnings. The comparison of TMS/TFRS and the local accounting standard is carried out by measuring the "accrual quality" of the "earnings quality". In order to compare the TMS/TFRS and local accounting standards, 2.300 firm/year data of 100 companies that have been traded uninterruptedly between 1994 and 2016 in the Istanbul Stock Exchange (Borsa İstanbul) have been used. The financial data reported by these companies in balance sheet and income statements before and after the TMS / TFRS application are obtained as required by the models used to measure the accrual quality. The accrual quality was measured in two different ways and in these measurements, five models were used, one of which was composed (and one of these models created by modified others model) in this study. Firstly, the validity of model variables was tested, after that these data were analyzed with the "panel data analysis" in models. Analysis of the data set was carried out in a variety of ways according to the variables in the TMS / TFRS pre and post period, and the measurement of the accrual quality and the variables in the models. In this way, it has been possible to compare the TMS/TFRS and the local accounting standard at various time intervals. Four different criteria / tests were used to compare the findings obtained as a result of the analyzes. In the analysis findings, significant evidence has been obtained that TMS / TFRS increases the accrual / earnings quality of the companies. According to this evidence, the companies in Turkey can report better quality of earnings by decreasing the levels of earnings management of managers with TMS / TFRS applications.