COMPARISON OF METHODS FOR THE RECOGNITION OF DERIVATIVE FINANCIAL PRODUCTS WITHIN THE SCOPE OF TURKISH FINANCIAL REPORTING STANDARDS (TFRS)

In the global competition environment,the companies' areas of usage regarding derivative financial products becamewidespread and these instruments started to take an important place in theliability statements of the businesses. In terms of financial accounting, thecompanies need to reflect the usage of derivative financial products in theirfinancial statements, and in terms of administrative accounting, they searchfor methods that will facilitate the follow-ups for the performance assessmentand decision making procedures regarding the processes of large scalederivatives. The companies making investments in thederivatives in hopes of risk management or speculation acquire mutual rightsand liabilities through the contracts they make. For the assessment andrecognition of these rights and liabilities, the standards numbered TMS 32, TMS39, TFRS 7 and TFRS 9 were published by the Public Oversight Authority ofTurkey. These standards coincide with the standards published by theInternational Accounting Standards Board (IASB). In this study, attention is drawn to theassessment and recognition of the derivatives in line with the aforementionedstandards, and alternative solutions are discussed