THE USE OF PROVISIONS IN COMPANIES UNDER THE TURKISH FINANCIAL REPORTING STANDARDS

Internal and external stakeholders need a variety of knowledge to make the right decision about the companies. The most important of these are financial reports. As these reports are being prepared, companies take into account the basic concepts of accounting and financial reporting standards. With these tools, it is aimed to provide a fair, reliable and transparent presentation of the reports. The information in the financial reports takes into account the facts which are mostly realized, in some cases based on the estimation. Estimation based data are generally used by the business management to calculate the provisions. Provisions have a significant role in the preparation of financial reports. In this study, first, provisions are reviewed in Turkish Accounting Standards framework. Then, by examining in which way and what amount the provision items that taken in the scope of TAS 37 Provisions, Contingent Liabilities and Contingent Assets and TAS 19 Employee Benefits are disclosed in financial statements of companies quoted to BIST 30 index, provision ratios by years, and distribution by sectors, it is aimed to determine the usage level of provisions