Reflections of IFRS and Translation Loss: The Case of Turkcell

Abstract

This study examines the possible reflections of translation differences based on the financial statements that areprepared in accordance with IFRS, and TFRS, which is a literal translation of IFRS. Majority of the literature about“accounting and translation” concerns regulations, and there has been a few on the reflection of these on annual reportspresented in more than one language. A company which prepares financial statements in two languages has been chosen forcase study analysis to gain insight. We selected Turkcell Group since they are the first and only company in Turkey thattrades on both the New York Stock Exchange (NYSE) and Borsa İstanbul (Istanbul Stock Exchange). Turkcell prepares itsfinancial statements in both languages. SEC ruled in 2007 to accept financial statements prepared in accordance with IFRSwithout reconciling them to U.S. GAAP, with an effective date of March 2008, narrowed our focus on the period of 2009 to2017. In this pilot study, the content analysis revealed that there is a significant difference between two financial statementsin terms of intangible assets yet there is no significant difference for tangible assets.