Abstract:

Securities are economic assets that acquired for a certain period of time to obtain profit share or to benefit from short-term price increases such as stock bond, bond, profit-loss partnership certificate and financial bond. There are different arrangements fort he acquisition, classification, recognition and valuation of securities at the end of the operating period. Securities are generally accounted for according to the provisions of the Uniform Accounting System and Tax Legislation. However, the accounting principles for securities have changed completely with the recently adopted Turkish Accounting and Financial Reporting Standards. There are two basic accounting standards that describe the accounting principles for securities. These are TMS 39 Financial Instruments: Recognition and Measurement Standard and TFRS 9 Financial Instruments Standard. The objective of this study which is prepared in the framework of these standards provisions is explaining classification of securities, recognition for the first time, valuation at the end of the period and reporting of valuation differences and to ensure a better understanding of the standards provisions through practial examples.

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