Accounting of derivative products according to TMS/TFRS and comparing with TDHP

In today's world, financial markets have an active and important role in the economies that are growing under the influence of globalization, such as the realization of money and capital movements. But it also contains some systematic and non-systematic risks while performing this function. Consequently, the businesses need to have an effective risk management policy to protect themselves from these risks. Derivative products those used to have speculative profits, can also be used by businesses for hedging under the risk management framework. At the same time the purpose of use should be prioritized while accounting of derivatives products. As a result of determining, businesses bring out accounting operations according to hedge accountancy and speculation accountancy practices. Here, some differences will be shown there between doing accounting practises of businesses according to TMS/TFRS and TDHP. The aim of this project, in general, introducing financial markets and derivative markets as a part of financial markets keeping accountancy records in reference to TMS/TFRS of swap contracts ,option, futures and forward being basic by products within the frame of accounting and financial reporting standarts and finding out differences according to TDHP accounting records. In accordance with this purpose, in general, initial registration, valuation and differences in closure operations at the contract due date, stand out. In this project, concerning with valuation and accounting of financial intruments, have been benefited from TMS 32, TMS 39, TFRS 7 and TFRS 9 published by Public Oversight Accounting and Auditing Standarts Authority and the principles of Uniform Chart of Accounts (TDHP).