Financial instruments of MSUGT, TMS\TFRS and BOBI FRS: Accounting, measurement, presentation and disclosures

Financial instruments are contracts that enable the flow of funds from the owners of the funds to the parties in need of funds through the future cash flows and provide the sharing of risks between the parties. The importance of financial instruments is gradually increasing under current conditions. The advantages of financial instruments are to generate income from excess funds, to prevent financial risks and to obtain funds with low risk. Enterprises in Turkey, must apply both accounting standards and General Communiqués on the Application of Accounting System. Accounting/Financial Reporting Standards, recognition of financial instruments, measurement, presentation and disclosure are regulated in detail. In addition, financial instruments are regulated in the sections of the Financial Reporting Standards for Large and Medium Sized Enterprises. Moreover, there are legislations regarding financial instruments in the General Communiqués on Accounting System Implementation. In the first part of study, basic concepts such as accounting, accounting standards and financial instruments are explained. In the second part, the regulations regarding financial instruments in the standards and in the General Communiqués on the Application of the Accounting System are discussed in detail and comparatively. In the third section, detailed examples of recognition, valuation, impairment, exclusion and presentation and disclosure of financial instruments in accordance with all three regulations are presented. Keywords: International Accounting Standards, Financial Instruments, IAS 32, IAS 39, IFRS 7, IFRS 9, MSUGT