Abstract:

The birth of accounting profession in Turkey occurred within the scope of state accountancy in the classical era of the Ottoman Empire. The reason is that private sector entities were small and few. There was a great change after the Administrative Reforms of 1839 with the first Turkish commercial code titled Kanunname-i Ticaret. Those changes followed one another between the years 1879 – 1885 like a breakpoint after the Turkish – Russian War (1877 – 1878). First, double entry bookkeeping method and afterwards modern financial auditing organization Heyet-i Teftişiye was established. In the meantime, Hamidiye Commercial School (Hamidiye Ticaret Mektebi) was established in order to educate individuals for business life. They aimed to spread the usage of double entry bookkeeping method with educational programs in schools and academic studies. This time period can be evaluated as a transition period to double entry bookkeeping. A new era for accountancy began with the establishment of the Republic. Legal regulations that will effect the century were made between the years 1926 – 1930. This important development was conducted with the acceptance of three important tax laws (Income Tax Law of 1926, Excise Duty Law of 1927, Consuming Tax Law (İstihlak Vergi ve Resimleri Yasası) of 1930). Taxes were conducted with declaration statements. This situation made double entry method and financial auditing practices important. Commercial state enterprises were established between the years 1930 and 1940, which brought forward subjects like, tax based accounting practices, tax auditing, education of accountants, and concept of managership. It is observed that accounting profession started to be used in big cities at the end of 1930s. Because of its growth, state aimed to legalize accounting profession twice but they had failed. Afterwards, accountants, academicians and top executives of state auditing bodies came together and form Expert Accountants and Business Managers Association in 1942. Today, this organization is called The Expert Accountants’ Association of Turkey. The association is the member of several professional bodies. The association organized 17th World Accountants Congress along with TURMOB in 2006, Istanbul.

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