Özet:

Share repurchase in the international arena has been one of the means for listed companies for years to avoid undervaluation by signalling the fair value of their shares to the market. Turkey, however, has recently updated its legal infrastructure in both Commercial Code and Capital Markets Law in order for listed companies to grasp the benefits of such transactions provided that several criteria are met. On the other hand, companies are in need of comprehending the basic effects of share repurchase transactions not only on stakeholders but also on themselves. Hence, this study has the purpose to interpret these effects in a financial reporting point of view in accordance with Turkish Accounting Standards (TAS)/Turkish Financial Reporting Standards (TFRS) and provide an implementation guiadance with illustrative examples and supporting recommendations as well.

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