Abstract:

With the globalization of the financial system, money and capital movements between the countries have concentrated. As a result, various financing models have been used. Savings owners, investors, and trading enterprises, who do not see the commonly applied financial models closely to themselves because of their beliefs, have begun to remain outside the financial system. These parties have begun to develop funding models that fit Islamic beliefs in order to be incorporated into the financial system. The interest-free financial institutions, called the Islamic Bank, participating bank or private financial institution, operate basically according to the profit or loss partnership model. In our country, there are non-profit financial institutions that participate in banking. By 2021, there are 6 participating banks in our country. According to the Turkish Trade Law and Banking Law, the participating banks are required to apply the regulations of the Banking Regulatory and Supervisory Authority (BDDK) and the TMS and TFRS published by the Public Supervisory Accounting and Audit Standards Authority. However, the fact that participating banks’ activities, such as funding and funding, are based on profit or loss partnership instead of interest, leads to their separation from other banks in their accounting and financial statements. At this stage, the importance of participating banks to be accounted and in accordance with their operational principles and interest-free financial principles. To meet this need, within the jurisdiction granted by the Turkish Trade Act, the Public Supervision Accounting and Audit Standards Board has published the International Standards in the field of interest-free finance (FFMS) for the application of interest-free Finance and Accounting Standards in our country. In this context, it is published on the basis of the Non-Financial Accounting Standards published by the Islamic Financial Institutions Accounting and Audit Authority (AAOIFI). The standards published by the KGK will begin to apply in the annual accounting periods starting on 1 January 2020 or after. Uninterested financial institutions will be able to implement early. In this study, the General Presentation and Declaration Standard in the Financial Statements of the FFMS 1-Investing Banks and Uninterested Financial Institutions published by KGK was examined and comparison and evaluation of the TMS 1-Financial Statements with the Presentation Standard.

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