International Accounting and Financial Support for Business

Introduction

International accounting and financial support for business is a key aspect of successful operations for companies operating in different jurisdictions. In this article, we will examine the features of accounting and financial support for businesses in the USA, the United Kingdom, and Turkey, paying special attention to national laws and standards governing this area.

USA

Main Standards and Regulatory Bodies

• US GAAP (Generally Accepted Accounting Principles): Generally accepted accounting principles that establish financial reporting standards for companies in the USA.

• SEC (Securities and Exchange Commission): The U.S. Securities and Exchange Commission, which regulates the activities of public companies and ensures investor protection.

Legislative Acts

• Sarbanes-Oxley Act of 2002: Enacted to enhance the transparency of financial reporting and prevent corporate fraud. It establishes strict requirements for internal control and auditing of public companies.

• Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010: Aimed at reforming the financial sector, including strengthening the regulation of accounting and auditing.

International Standards

Although US GAAP is applied in the USA, discussions are ongoing about convergence with International Financial Reporting Standards (IFRS). However, as of now, there has been no official transition to IFRS.

United Kingdom

Main Standards and Regulatory Bodies

• UK GAAP (Generally Accepted Accounting Practice): National accounting standards applied in the United Kingdom.

• FRC (Financial Reporting Council): The Financial Reporting Council, responsible for establishing accounting and auditing standards.

Legislative Acts

• Companies Act 2006: The main law regulating company activities in the United Kingdom, including requirements for accounting and financial reporting.

• The Statutory Auditors and Third Country Auditors Regulations 2016: Regulates the activities of auditors and establishes requirements for audit inspections.

International Standards

Companies whose shares are listed on EU stock exchanges are required to prepare consolidated financial statements in accordance with IFRS. Other companies may choose between IFRS and UK GAAP.

Turkey

Main Standards and Regulatory Bodies

• Turkish Financial Reporting Standards (TFRS): National standards based on IFRS, applied for the preparation of financial statements.

• Public Oversight, Accounting and Auditing Standards Authority (KGK): The body responsible for establishing and overseeing compliance with accounting and auditing standards.

Legislative Acts

• Law No. 3568 of June 1, 1989: Regulates the activities of certified accountants in Turkey. According to this law, accounting can only be conducted by licensed accountants, referred to as "Certified Public Accountants (SMMM)" and "Sworn-in Certified Public Accountants (YMM)."

• Turkish Commercial Code (TCC): Establishes general requirements for accounting and financial reporting for companies.

International Standards

Turkey has adopted International Financial Reporting Standards (IFRS) and adapted them in the form of TFRS, ensuring the comparability of Turkish companies' financial statements at the international level.

Conclusion

International accounting and financial support for business requires a deep understanding of the national laws and standards of each country. In the USA, US GAAP and strict legislative acts aimed at ensuring transparency and reliability of financial reporting prevail.

The United Kingdom combines national UK GAAP standards with international requirements, providing flexibility for companies. Turkey actively integrates international standards, adapting them to national specifics through TFRS and corresponding legislation.

Companies operating in these jurisdictions must consider these differences and comply with the relevant norms to ensure successful and lawful operations at the international level.