398 Int. J. Managerial and Financial Accounting, Vol. 1, No. 4, 2009
Copyright © 2009 Inderscience Enterprises Ltd.
Growing tendency to harmonisation with IFRS: some
evidences from Turkey
Mehmet C. Kocakülâh*
College of Business,
University of Southern Indiana,
8600 University Blvd., Evansville, IN 47712, USA
Fax: 812-465-1044 E-mail: mkocakul@usi.edu
*Corresponding author
Can Şımga-Muğan
Department of Business Administration,
Middle East Technical University,
Inonu Bulvarı, Ankara, 06531, Turkey
E-mail: mugan@metu.edu.tr
Nazli Hoşal-Akman
Faculty of Business Administration,
Bilkent University,
Bilkent, Ankara, 06533, Turkey
E-mail: nakman@bilkent.edu.tr
Mehtap Aldogan
Ernst & Young LLP,
200 Clarendon Street, Boston, MA 02116, USA
E-mail: mehtap.aldogan@ey.com
Abstract: Motivated by the recent developments in accounting regulations, we
explore the tendency of countries to converge to IFRS for both public and
private companies and present some evidence on the issue from an emerging
market. We explore how the legal system – civil vs. common law – and the
stock market development stage in a country affects the acceptance of IFRS by
the regulators. We find that stock market influences the acceptance of IFRS for
both public and private companies while the legal system affects the
requirement of IFRS for the private companies. In Turkey, different regulatory
bodies control different types of companies. Capital Markets Board that
controls the listed companies issued the first set of translated IFRS in 2003.
Established in 2002, Turkish Accounting Standards Board (TASB) is
responsible to translate and issue the international accounting standards.
Examination of issue and effective dates of both standards reveals that TASB
closely follows the IASB efforts.
Keywords: international financial reporting standards; IFRS; legal system;
harmonisation; convergence; Turkey.