Abstract:

Bonds As A Financial Instrument Within The Framework Of IAS 39 In Turkish Accounting Standards, in terms of investor enterprise bonds are classified as financial assets, and in terms of issued enterprise it is classified as financial liabilities. As a financial asset, bonds are defined “held to maturity”, as a financial liability, bonds are defined “measured at amortized cost”. Financial tools are measured their fair values at the initial measurement, and are measured at amortized cost by effective interest method at the subsequent measurement. In the subsequent measurement of bonds, expected cash flows are discounted by using effective interest method and bonds are represented by their worties at the valuation date. Thus, interests are distributed over the period on the basis of effective interest method. In this study, It is discussed the principles of how bonds are measured and recorded, and analyzed the differences between Turkish Accounting Standards and tax practices used in Turkey.

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