Ums 24 İli̇şki̇li̇ Taraf Açiklamalarina Uyum Ve Deneti̇m Komi̇tesi̇ Veri̇mli̇li̇ği̇: Bist'te Li̇stelenmi̇ş Şi̇rketler Üzeri̇ne Ampi̇ri̇k Bi̇r Anali̇z

Abstract

Although the International Accounting Standards Board states that over 166 jurisdictions have globally adopted IFRS/IAS, this statement, unfortunately, overlooks the reporting firm's financial statements' actual compliance level. Despite the international accounting communities' continued efforts, there remains a worrying trend of non-compliance within financial statements prepared according to the International Financial Reporting Standards. Serving as a mechanism towards ensuring that the firms' financial reports are understandable, transparent and reliable, and prepared following the current legislation and international accounting standards, the Audit Committee (AC) is uniquely positioned to increase the quality of information produced by organizations. By employing the International Accounting Standard 24 "Related Party Disclosures", this paper aims to empirically measure Turkish manufacturing firms' compliance levels listed on the BIST within 2019. Moreover, the paper attempts to analyze the driving role AC characteristics play in increasing compliance within the firms. It is hoped that the results of this research will hold particular importance for researchers and regulatory agencies in promoting further improvements of the Audit Committee.

Firm characteristics and the level of IFRS compliance and disclosure in GCC countries

“…In 1973, the International Accounting Standards Committee (IASC) was formed with the aim of unifying the world capital markets under one common reporting language by developing a single set of International Accounting Standards (IAS) (Ball, 2006;Cagle, 2021). Indeed, developing countries were keener than developed countries to adopt the IAS.…”

“…However, after the emergence of the International Accounting Standards Board (IASB) in 2002 (accounting standards being referred to as the International Financial Reporting Standards (IFRS)) (Ezejiofor, 2022), and the decision by the European Union (EU) to comply with IFRS in 2005, the number of both developed and developing countries that have adopted IFRS has remarkably increased (Edeigba et al, 2018). Recently, over 166 jurisdictions have implemented IAS/IFRS (Cagle, 2021). Therefore, the spread of these international standards has encouraged scholars to measure the level of adoption of IAS/IFRS in different regions.…”