Evaluation of effectiveness test stated in hedge accounting: Implemantation of dollar offset method

A business environment where uncertainty prevails; leads to take risks in decision making, implementing the decisions taken and folding the results. Businesses that provide economic benefits are exposed to many financial risks and take measures to ensure their persistence during the periods in which they operate. The fact that the companies make hedging transactions and subject them to hedge accounting provides the possibility of estimation to the users about the future of the enterprises. The conversion of the estimation into confidence or insecurity is related to whether the hedging process is effective or not. In this study, it is aimed to determine the improvement in the utilization rates of deposit banks which applying the hedge accounting and the level of effectiveness expected to be provided in hedging. The deposits banks which operating in Turkey were examined between 2014-2018 years of the annual report and the ratio analysis were utilized in the effectiveness measurement. As a result, it is determined that the increase in the exchange rate and interest rates increased the utilization rates of hedge accounting. According to the results of the effectiveness test, Akbank, QNB Finansbank and Türkiye İş Bankası are the most successful deposits banks in the desired level of effectiveness and it was seen that Türkiye Garanti Bank was determined not show the same success.