The effect of Turkey accounting standards (TMS) on Turkish insurance sector

The main aim of this study is to analyze the effects of Turkish Accounting Standards on Turkish insurance sector. Firstly, accounting standards and general conceptual framework for the insurance sector are presented in the study. Accounting standards related to insurance sector are explained. The definition, importance, types, functions, basic principles and financial tables of the insurance sector which has a very important place in the Turkish financial system are discussed and financial analyzes and ratios are mentioned. For the purpose of this study, the average of 20 basic financial ratios of insurance companies operating in non-life branches were calculated between 2003 and 2017 and compared within these years. Then these ratios for the periods prior to TMS (2003-2007) and after TMS (2007-2017) were examined whether there was a statistically significant difference between these periods and their significant levels are tested. Financial ratio analysis and Wilcoxon Signed Ranks Test were used as statistical data analysis methods. The data were analyzed by SPSS 20.0 package program. According to the results of the analysis, a statistically significant difference at the specific significance levels was found in the 13 financial ratios of the companies operating in the insurance sector between the pre- and post-TMS periods and on the sectoral basis.