Impact of international accounting standard adoption on key financial ratios

The globalization has had a certain repercussion in the accounting field and raised the necessity of applying a common language in accounting. This common language is regarded as IFRS (International Financial Report Standards). After their adaptation and application in many countries as well as in Turkey, the effects of IFRS on general economy, accounting policies and laws have been discussed. In this study, some general information has been released about the development of IFRS in Turkey and the determined primary financial ratios have been explained. The study has also endeavored to measure the impact of IFRS on the primary financial ratios of some firms in Istanbul Stock Exchange Industrial Index which are suited to the research conditions. Two different analyses have been conducted within the framework of this study. In the first analysis, in order to represent the financial tables of firms, the years between 2000-2004 has been considered as Pre-IFRS period and the years between 2005-2009 has been considered as Post-IFRS period. 12 primary financial ratios on the financial tables belonging to these periods have been averaged and compared, and then the results have been analyzed according to the T-test and Anova methods. In the light of the findings, it is concluded that IFRS regulations affect the primary financial ratios in the relevant period and the averages of financial ratios create homogeneous groups. 1. Globalization 2. Accounting Standarts 3. International Financial Report Standarts 4.Basic Financial Ratios 5. Istanbul Stock Exchange