INTERNATIONAL FINANCIAL REPORTING STANDARDS AND RECALUATION OF TANGIBLE ASSETS

These standards, which were published as International Accounting Standards (UMS) until 2001, started to be published as International Financial Reporting Standards (IFRS) after this year. In 2002, all European Union countries announced that they would be subject to these standards. Within the scope of European Union harmonization laws, our country adopted IFRS standards in 2017. The reason for the creation of IFRS is to create a common reporting language and to make the financial statements of companies on a global scale understandable and comparable.

Inflation, which affects all segments of society economically, socially and politically, is defined as an increase in the general level of prices. The high inflation in the last 30 years has also affected the businesses negatively and the traces of this negative effect are also clearly seen in the financial statements of the companies.

In inflationary periods, the difference between the registered values and the current values of the assets registered in the balance sheet makes the accuracy and reliability of the financial statements showing the results and flow of the activities of the enterprises questionable. Inflation disrupts the homogeneity of financial statements, makes the asset structure of balance sheets meaningless and may cause inflation profits to occur in income statements.

In our country, the correction of the financial statements by taking inflation into account was recently made within the framework of "Tax Inflation Accounting Practice of the Balance Sheets dated 31/12/2003". After this date, the value of the securities in the balance sheet continued their assets with their costs at the date of acquisition.

The values of the assets at the time of entry into the business and the economic, political and technological developments may differ from each other in the current market conditions depending on the use of the asset. With the globalizing world and increasing competition, compliance with the International Valuation Standards (UDS) has become mandatory in order for companies to open up to the world, to integrate into the markets, to harmonize their financial statements and to be accepted in the international market with a common discipline. In this context, making an initial inventory of tangible fixed assets and revaluation in accordance with the truth has become a necessity that brings different solutions, rather than an accounting process.

It will be beneficial for the enterprises to revalue their fixed assets included in the balance sheet in certain periodic periods with the methods determined by the UDS, in order to obtain tax advantage and to regulate their credibility. This work can be done for some or all of the fixed assets.

The period of change in the fair value of tangible fixed assets included in the assets of companies should be the same as the period of revaluation. When the market data (inflation, exchange rate change, etc.) are examined, it is obvious that the annual revaluation of all economic assets will provide an advantage for companies in our country and today's world conditions.

Sufficient experience and knowledge with CMB licensed Valuation the revaluation of assets by economic experts, a mechanical engineer, machinery and equipment, facilities, land-air-sea studies, valuation of vehicles, inventory, investment, monitoring and the reporting entity is the owner of high quality and accurate way of due diligence, institutions and individuals is of great importance. Detailed information is available on(www.adendegerleme.com).

INTERNATIONAL FINANCIAL REPORTING STANDARDS AND RECALUATION OF TANGIBLE ASSETS
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