IAS 21 effects of exchange rate changes presentation of the standard to financial statements: Application of an entity operating in the marble sector

Borders have been eliminated with the end of political and economic barriers for enterprises. In this respect, investments in different countries are increasing. With the increase in globalization, enterprises want the accounting systems of companies in the countries they want to invest in to be understandable and accurate. Therefore, it is necessary to prepare the accounting systems and financial statements of each entity based on internationally accepted standards. As foreign capital transactions of enterprises increased, foreign exchange-based transactions increased. Foreign exchange differences arise as a result of foreign currency transactions. The objective of this study is to report foreign currency exchange effects in the financial statements by taking advantage of the standards of exchange rates. In addition, it is necessary to examine whether there is any difference in the accounting records in foreign currency transactions. In this study, it is aimed to provide information about the structure and use of Accounting Standards, what accounting standards are, what studies are carried out for the development of the world and Turkey, and financial statements and reports. In the first part of this purpose, accounting standards, accounting standards in the world and in Turkey, the development of the financial statements are presented under the headings. In the second part of the study, the IAS 21 exchange rate effects standard was examined. The data on the standard are technically mentioned. Comparison of the current accounting practices and IAS 21 exchange rate effects standard. In the third part, the data of the entity dealt with in the light of the information obtained were evaluated within the scope of IAS and the application section was attempted to be completed. The application consists of three parts. The revaluation process in the first chapter, second section, as a result of transactions in foreign currencies and IAS discuss the differences between existing accounting system and accounting records shows.In addition, it was investigated how the results changed when the financial statements were translated into a different currency.