Markets require transparent and comparables financial reporting with the world becoming a global village. IFRS proved that it is the best candidate. Besides, the New Turkish Commercial Code introduces mandatory transition to IFRS in due course. In summary, for Turkish companies all the roads lead to IFRS when it comes down to accounting standards. Are you ready for this change?

International Financial Reporting Standards have become global accounting language with more than 100 countries already using the standards, and that number will continue to grow. Turkey, as the 17th largest economy in the world will follow the same path and with mandatory transition proposed by the New Turkish Commercial Code all entities (ASs and LSs) will be required to prepare their accounts by applying Turkish Accounting Standards (TAS) which are equivalent of IFRS.

Time and effort to convert from existing Turkish local GAAP to IFRS/TAS is not a small task. This will have a sweeping impact on all entities regardless of the size, even the listed companies in Turkey since this is not a "just change of numbers” but a conversion of all related systems! While many companies may initially think of IFRS as an accounting/reporting matter, they will quickly realize conversion is an enterprise-wide, business transformation project impacting multiple layers of operations including key business processes, investor relations, HR, IT systems, even subjects such as debtor/lender agreements.

What are the implications of conversion?

Is converting to IFRS/TAS a straightforward process? The Company management may easily underestimate the volume and complexity of the work involved. Conversion to IFRS/TAS is much more than an accounting compliance issue. It may pose a number of significant and complex questions that Turkey's business leaders need to consider now such as:

• What are the significant impact areas for each business and how complex will it be to convert to IFRS/TAS?
• How will IFRS/TAS impact reported business performance and how will this impact be communicated effectively internally and to the market at large?
• What expertise and resources will be needed to ensure a successful conversion?
• How should conversion to IFRS/TAS be managed?
• What are the potential benefits of converting to IFRS/TAS?

The answers to those questions may reveal the fact that for many Turkish companies this conversion will bring fundamental changes.

Why Cerebra?

In your conversion process from existing Turkish GAAP to IFRS/TAS, Cerebra has the knowledge and expertise necessary to help you in addressing all changes that IFRS/TAS demands. Since IFRS/TAS transition will have numerous implications and challenges for businesses of Turkish companies in many ways, our teams include a range of technical, industry, training, communication and change management expertise.

How Cerebra can help you?

Cerebra can provide the following IFRS/TAS services:

• IFRS/TAS conversion services "IFRS Conversion” (see below),
• Preparation of IFRS/TAS financial statements and annual report,
• Determination and selection of proper accounting policies considering the company's industry and preparation of IFRS/TAS accounting manual,
• IFRS/TAS Training Programme that can be customized to your needs (click for more information),
• IFRS/TAS accounting advice and opinions on specific issues,
• Accounting, bookkeeping and related services (click for more information).

What is "IFRSCONVERSION”?

Cerebra is introducing a methodology which will enable you to successfully complete the transition to IFRS - "IFRSCONVERSION”. This is a simple conversion "6 step approach” that will assist you in implementing the change. "IFRSCONVERSION” is a methodology that can be tailored easily to address to your specific business issues and needs. The methodology includes the following steps:

I.   Preliminary study
II.  Management of resources and project
III. Having continuous training
IV. Assessment and conclusion on IFRS/TAS accounting policies
V.  Preparation of converted accounts
VI. Realignment of the business to implement change smoothly

Please contact us for further information as to how we can help you to adapt IFRS/TAS in your company.