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Corporate Law Department Mission Statements

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Corporate Law Department Mission Statements document sample

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									RUSSIAN CORPORATE GOVERNANCE
     ROUNDTABLE MEETING


 SESSION 4: HOW SHOULD IFRS BE ENFORCED?

         THE EXPERIENCE OF TURKEY

             November 11, 2004-Moscow

               Dr. A.R. Zafer SAYAR

 Head of Accounting and Auditing Standards Department
          Capital Markets Board of Turkey
                    Vice Chairman
        Turkish Accounting Standards Board
                                                        1
                          CAPITAL MARKETS
                               BOARD
                             OF TURKEY
   Regulatory and supervisory authority in the capital markets.
   Capital Markets Law (CML) enacted in 1981.
   MISSION STATEMENT:
    “to take the necessary measures for fostering the
    development of capital markets, and hence to contribute to
    the efficient allocation of financial resources in the country
    while ensuring investor protection”
   Establishment of accounting and auditing standards in capital
    markets in harmonization with international standards
   Membership to the IOSCO the relationships with the relevant
    groups in the OECD and EC are continued.                  2
IMPROVEMENTS IN TURKISH
    CAPITAL MARKETS
                           ACCOUNTING
 European Commission         (IFRS)        IFRS
 IMF and WorldBank                         Turkish Accounting
 Inflationary Accouting                   Standards Board

 Consolidated Financial
Statements



                                           CORPORATE
     AUDITING
                                          GOVERNANCE
 (SARBANES-OXLEY)

              Ethical Standards           Corporate Responsibility
              Independence of Auditors    Restored Confidence in
                                          Capital Markets
              Corporate Governance                                  3
              NEW ACCOUNTING
                STANDARDS

   Moved Closer to Anglo-Saxon Model (IFRS)
   An important step on the road to ensuring fair
    presentation of financial statements (2003);
       “Inflation-adjusted consolidated financial statements”
       “Inflation-adjusted financial statements”




                                                                 4
WHAT ABOUT IFRS IN TURKEY?
   All EU companies listed on a regulated market to use IFRS from
    2005 onwards and allowed Member States to extend this
    requirement to all companies.

   Existing regulations have been made harmonious with IFRS.
       Consists 33 IFRS.Newly issued IFRS will be adopted immediately.
       Required for all listed companies by the year 2005
       Until then, IFRS may be applied.

   Today, we have many listed companies applying IFRS (%75 of
    market capitalization in Istanbul Stock Exchange)



                                                                          5
               TURKISH GAAP
A  single robust general-purpose system in
 compliance with IFRS.
 Turkish   Accounting Standards Board (1999)
     Sets uniform national accounting standards
      compatible with IFRS.
     Has its own public legal entity and administrative
      and financial autonomy,
     CMB supports TASB.
     Formal relationship with IASB.

                                                       6
         ENFORCEMENT OF IFRS
 Making     regulations would mean nothing unless
    effective implementation and enforcement exist
    in the market.
   Enforcement of standards is vital for global capital
    markets
   We need convergence in;
       Accounting
       Auditing
       Disclosure-Corporate Governance
                                                       7
       AUDITING AND CORPORATE
      GOVERNANVE PRINCIPLES IN
               TURKEY
Existing regulations have been revised in accordance with Sarbanes-
Oxley Act:
 A project: the full revision of existing auditing standards compatibly with
International Standards on Auditing.
CMB     Corporate Governance Code has been promoted (OECD
principles)
Rating agencies can rate the level of corporate governance of companies
under “Corporate Governance Practices” of Capital Markets Board of
Turkey.


                                                                        8
                    ROLE OF NATIONAL
                    STANDARD SETTER
   We need to work to continue
     to enhance cooperation and consistency in regulatory review and
     enforcement, and
        to improve training and interpretive mechanisms as well.


We   have to work to develop processes that would encourage consultation
amongst regulators, thereby reducing the chances for multiple
interpretations.


                                                                    9

								
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