Abstract:

Economic globalization, as in many fields, has influenced accounting practices as well. Its influence on accounting issue has manifested itself in the fields of international accounting standards and independent auditing. With the pressure induced by the eagerness to benefit from the New York Stock Market in 2005, European Union countries began to apply these standards, which influenced Turkey in the direction of implementing them, too. As the demands from international institutions were in line with the proliferation of these standards, such practices in Turkey gained speed. The provisions made by The Turkish Commercial Code in recent years and the foundation of Public Oversight Accounting and Auditing Standards Authority have brought up the issue of the acceleration and implementation of Turkish Accounting Standards more efficaciously.In parallel with these advancements, IASB (International Accounting Standards Board) was founded in 1973 with intent to establish a common accounting system to be used by worldwide companies, and internationally accepted accounting standards were composed under the names of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS).In an attempt for such accounting practices to be implemented efficiently, as of January 1, 2005, public-limited companies in the European Union (EU) were imposed an obligation, whereby they were to implement their consolidated financial statements, which they are supposed to declare to the public, in accordance with International Financial Reporting Standards (IFRS) approved by the European Union.

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