a)
Preparation obligation
The board of directors prepares financial statements, its supplements and annual report of the board of directors of the previous period as stipulated in the Turkish Accounting Standards within three months following the financial year-end and presents them to the general assembly.
b)
True and fair view
The financial statements of joint stock companies prepared in accordance with Turkish Accounting Standards should reflect the following:
- Show the company assets, liabilities, shareholder's equity and financial results,
- Are complete, coherent, comparable and prepared in accordance with the needs and the company's characteristic,
- Are transparent and reliable,
- Reflect the facts in true and fair view.
c)
Annual report of the board of directors
Annual report of the board of directors reflects the relevant year's financial activities and financial position from all aspects in a complete, accurate, straightforward, true and fair manner. In this report the financial position is evaluated in accordance with the financial statements. In addition, the report clearly indicates risks that the company may be exposed. The report also includes the evaluations of board of directors with respect to these issues.
The annual report of the board of directors also includes the followings:
- Matters that have occurred subsequent to the financial year-end are of an important nature,
- Research and development activities of the company,
- Financial benefits such as salary and bonus payments, allowances, travelling, accommodation and representation expenses, cash or non-cash advantages, insurances and similar benefits provided to board of directors and senior executives.
The required minimum content of an annual report of board of directors for joint stock companies and group of companies is regulated in detail by the Ministry of Customs and Trade through bylaws.
