Did you plan to prepare annual report and affiliation report for 2014?
The deadline for the preparation of annual report and affiliation report for 2014 is 28 February 2015 and 31 March 2015, respectively. Are you ready to comply with these requirements?
I. ANNUAL REPORT
The communiqué regarding "Determination of Minimum Contents of Companies' Annual Report” prepared by the Ministry of Customs and Trade was published in the Official Gazette on 28 August 2012 and became effective on the same date. This communiqué covers annual reports of joint stock companies (AS) and limited liability companies (LS) as well as the annual report of parent company in group of companies.
In accordance with the communiqué, an annual report shall be prepared within two months following the year-end of the related financial period. Accordingly, for the financial year ended 31 December 2014 annual reports shall be prepared until 28 February 2015.
The financial information will be based on the financial statements as at and for the year ended 31 December 2014 prepared in accordance with the new Turkish Commercial Code.
What is the minimum content of annual report?
1. General information
2. Financial benefits provided to board of directors and senior executives.
3. Research and development activities of the company and their results
4. The company's operations and significant developments regarding operations
5. Financial condition
6. Risks and assessments of board of directors / managers
7. Other matters
II. AFFILIATION REPORT
In accordance with article 199 of the new Turkish Commercial Code, all joint stocks companies and limited liability companies (AS and LS) must prepare an "Affiliate Report”.
The board of directors of the subsidiary must prepare a report related to the company's relations with the parent company and dependent companies within the first quarter of the year. Accordingly, the deadline for the preparation of the 2014 affiliation report is 31 March 2015.
This report includes all legal transactions which the company conducted in the previous year with the parent company and any companies that the parent company participates in. This report will also include any compensation of losses of subsidiaries by the parent company.
In addition, the board of directors of the subsidiary must explain whether or not the subsidiary incurred any damages resulting from taking or refraining from taking the measure pertaining to the transactions with the group of companies including the parent company. If the subsidiary incurred damage, the board of directors must also explain whether or not the damage was compensated. This explanation must be included in the report.
If the board of directors fails to prepare this report related to the company's relations with the parent company and dependent companies, the judicial fine may not be less than 200 days. This fine corresponds to approximately minimum 4.000 TL and maximum 73.000 TL in accordance with the law.
How Cerebra can help you
Cerebra offers services designed to help our clients meet their annual reporting and affiliation reporting requirements in accordance with the new Turkish Commercial Code. Please contact us if you have any questions regarding this matter.
