A case study of TAS 37 provisions, contingent liabilities and contingent assets examination

Nowadays, trade has gained an international dimension with the impact of globalization. The international nature of trade transactions requires the use of a common language in the preparation of financial statements. The information contained in the financial statements for those, who will make investment decisions, is extremely important. The fact that the information contained in the financial statements is objective and comparable is an indispensable element for international trade. Turkey has not fallen behind the efforts of standardization in the world and has set up Turkish Accounting Standards in line with international standards. It is extremely important to understand and apply these standards in terms of the existence of Turkey in the international arena. In this context, among the Turkish Accounting Standards, TAS 37 Provisions, Contingent Liabilities and Contingent Assets have been analyzed and detailed information on this issue has been provided. It aims to make it more understandable by referring to the details of how these concepts are reflected in the financial statements and supporting them with sample applications. In order to make the work more understandable, the transactions of an enterprise that is obliged to obey the Accounting Standards of Turkey have been done with a sample application and financial statements have been presented in accordance with the standards at the end of the period.