Provisions, conditional debts and their application in Turkey

This study investigated the use of provisions in the current accounting system and focused on the measurement and recording of the provisions in banks. Interviews with a sample of banks attempted to find the measurement of provisions and the importance of provisions in the accounting system. The results showed that the measurement provisions differ by the type of bank being private or public one. Application of provisions have advantages and disadvantages within the present regulation. In case of the difficulty in obtaining equity, provisions can help the firms to control themselver; but at the same time do not present the companies to avoid tax by lowaring the taxable income.