Abstract:

Turkey Accounting and Financial Reporting Standards (TMS/TFRS) describe suitability for need and fair presentation as the most basic concepts of qualitative characteristics of financial information. Accordingly, it would be more useful if financial information is comparable, verifiable, timely and understandable. Although this is also valid for the information provided to the related parties of interest-free financial institutions, it is not sufficient for a financial statement user that is sensitive to Islamic law. Related parties of interest-free financial institutions are also interested in whether a financial transaction is in accordance with religious principles or not. Therefore, both qualitative aspects and quantitative characteristics of financial information are very important for related parties of interest-free financial institutions. This study focuses on leasing transactions, which is one of the methods of interest-free loaning. In this context, what will be examined are the procedures and principles of the Interest-Free Finance Accounting Standard (FFMS) regarding İjarah and İjarah Muntahia Bittamleek transactions, which was published by the Public Oversight, Accounting and Auditing Standards Authority (KGK) via 06.09.2019 dated and 30880 numbered Official Gazette and which is planned to be applied voluntarily by participation banks as of 2020. Besides, accounting records based on these principles will be scanned and the differences between TMS/TFRS and FFMS criteria will be revealed.

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