New rules regarding the preparation of corporate financial statements have been published in the Official Gazette. The new Financial Statement Examples and Implementation Guide, which entered into force with the decision of the Public Oversight, Accounting and Auditing Standards Authority dated October 30, 2026, will reflect the changes within the scope of the Turkish Financial Reporting Standard 18 in financial statements.
The regulation reshapes the headings under which companies will display their income, expense, and profit items in their financial statements. The new presentation structure aims to increase comparability between companies, make financial information more understandable, and facilitate independent audit processes.
The new system envisions a more distinct separation of results obtained from core operations from income and expenses arising from investment and financing activities. Thus, investors and users of financial statements will be able to more clearly monitor the performance resulting from companies' core operations and the impact of other income-expense items on profitability.
WHO WILL IT COVER?
The guide covers businesses that are subject to independent audit and that apply Turkish Financial Reporting Standards either mandatorily or voluntarily. Companies within this scope will be required to prepare their financial statements in accordance with the examples in the guide. Businesses that are not subject to independent audit but apply the same standards will be able to use the guide on a voluntary basis.
For companies that submit financial statements to the Public Disclosure Platform, the financial statement examples determined in the TFRS Taxonomy will also be used. For companies operating in the capital markets, banking, and insurance sectors, sector-specific financial statement examples will take priority; in cases where no sectoral examples exist, the provisions of the new guide will be applied.
The new financial statement examples will be valid for accounting periods beginning on or after January 1, 2027. Since the regulation also includes a retroactive application principle, companies will need to adapt their comparative period information to the new presentation format.
Businesses that choose to apply the TFRS 18 standard early will also be able to use the new guide early, provided that they disclose this preference in the footnotes of their financial statements. With the entry into force of the regulation, the previous Financial Statement Examples and Implementation Guide published in 2019 will be repealed.
The new rules do not introduce a new calculation method that increases or decreases a company's profit. The change focuses on the classification and level of detail with which financial performance is presented.
News Source: 12punto
