The effects of the international financial reporting standards on the arrangements of financial statements and a model application

Capital Movements and commerce have reached gradually unlimited in a globalizing world. International integration movements, the conditions of competition which are getting severer and severer, and the technological developments have increased the necessities fort he firms which are operating in the international markets, to harmonize to the economic and juridical formation of these market conditions. It is very important to be able to express the investments and economic activities of firms in different countries with financial statements prepared with a common language of accounting using the same principles, understanding, criteria and concepts.The spherical economic crisis which started in the USA and later spread to the rest of the world has caused the giant multinationals in this country and the firms in other countries to go into bankruptcy and increased the unemployment. This fact has shovn the necessity that the operators of the global economy have to take fast and right decisions in most conditions. To realize this, financial reports which are easily understandable, comparable, prepared in right time and containing true information are needed.International Accounting Standards ( IAS) and International Financial Reporting Standards (IFRS) are an international accounting language and system which is bazed on a common understanding, principles criteria and concepts.With respect to approaching International Accounting Standards,Turkish Accounting Standards Board (TASB), Capital Markets Board of Turkey (CMB), The Union of Certified Public Accountants and Sworn-in Certified Public Accountants of Turkey(UCPASCPA), Banking Regulation and Supervision Agency (BRSA), The Ministry of Finance, the Ministry of Industry and Commerce, The number of Chambers and Commodity Exchanges in Turkey (CCE), High Education Board(HEB) and other institutions, working in coordination with one another, have made important developments on the subjects of ?Turkish Accounting Standards ( TAS)? and ?Turkish Financial Reporting Standards (TFRS)?.The Productivity of these studies, the process of accession to EU will affect the developments in a positive way with respect to international commerce and capital movements.