Application and Reporting of Hedge Accounting in Banking Sector of Turkey-2018

Abstract

The widespread use of derivatives in the Turkish Banking sector started since the beginning of 2000's, although their initial use was during 1980's. The use of derivatives was limited with a few transactions before 2000. However, the banking crises and adoption of free currency system led the Turkish banks to use derivatives actively. The purpose of this study is to examine the use of derivatives and hedge accounting practices in banks that are operating in the Turkish banking sector. In this context, the audited 2018 IFRS-Financial Statements and their disclosures of 42 banks (commercial, participation, development and investment banks) was investigated. In this study, data about the use of derivatives and reporting of hedge accounting practices is collected and analyzed. This work was supported by Scientific Research Projects