TCC: The Cards will be shuffled

Message from our founding partner...

Are you ready for the New Turkish Commercial Code?

We are living in a period where the greatest amount of information is made available to public and in a world where a global economy is without borders and is apt to sudden changes. In this new order, it is crucial for companies to increase their competitive strength that the rules applied in business life are compatible with global standards. Along with increased competition, topics like the assessment of growth potential and development of companies, corporate governance, public trust and transparency have become priorities in the changing agenda of the global business world. Upon the adoption of the new Turkish Commercial Code, constructed on the grounds of transparency and accountability, the ability of all stakeholders in a society to access information and protect their interests will be ensured, in the direction of integration with the world economy and the objective of maintaining a high and sustainable growth rate with continual economic stability.

Within the New Turkish Commercial Code, a new era is beginning in Turkish Economy.  The New Commercial Code enacted on January 13th, 2011 will be effective as of July 1st, 2012.
 A new commercial vision is starting within Corporate Governance, Transperancy, Fair Presentation principles and International Standandars. New Commercial Code requires significant changes to Company’s management in respect of transparent corporate governance, IFRS (International Financial Reporting Standards) 

and auditing. 

Our mission at our services will be in effect within New Commercial Code:

Corporate Governance for reliability and transparency

The new Turkish Commercial Code, which also covers the corporate governance principles, will affect the entities’ management approaches. The New Turkish Commercial Code aims a systematic structure for the corporate governance considering the reliability and transparency. This structure should be designed in a manner to allow management to identify the risks and the issues which may occur in the future. Those charged with the corporate governance will adopt the mentioned structure and undertake the responsibilities of the possible outcomes.

IFRS (International Financial Reporting Standards) for fair presentation

Turkish Companies will increase their competiveness by means of their financial statements prepared in accordance with the International Financial Reporting Standards (IFRS). The New Turkish Commercial Code refers to the Turkish Accounting Standards that is compatible with IFRS and Turkish Auditing Standards, which is compatible with ISA.

ISA (International Standards on Auditing) for opinion on Financial Statements

In the New Turkish commercial Code, the audited financial statements are being emphasized. The audit of all the Corporations will be performed by the independent auditors.  The Companies’ Financial Statements will be audited with respect to the Turkish Auditing Standards compatible with the International Standards on Auditing. As per the new TCC, independent audit will be mandatory for all joint stock and limited liability companies in Turkey. The Code emphasizes the obligation of independent audit even for Small and Medium Size Entities. Thereby, it is stated that the consistency of the financial information presented in the annual report with the audited financial statements are in the scope of the audit work.

Within New Commercial Code, the audited financial statement without unqualified opinion will not be effective in legal aspect.

Really a comprehensive reform for the Turkish Companies is in effect in Corporate Governance, Accounting, Financial Reporting and Auditing by the new Commercial Code. All these changes are now ‘’hot topic’’ in the agenda of Company’s management.  

I do always experience and observe the need of  transparency and fair presentation.

Therefore, I believe in Turkish Commercial Code.

I do believe, it is of utmost importance for the Turkish business world, which is in a rapid process of transformation and which is a new star in global economies. Investing in Turkey had become a agenda for most parties in Capital Markets.

Accordingly I believe in pushing the boundaries of global competition and to work with more transparent principles in order to increase the global competitive strength of Turkish enterprises in the vision of competition in a world without boundaries.

More importantly, I really believe in the common language and comperative information in this process of tranformation.

Yours truly,

 

Tugba BALIKLI, Founding Partner