METHODS USED FOR ANALYZING CASH FLOW TABLE AND CASH FLOW TABLE ACCORDING TO TURKEY ACCOUNTING STANDARDS

Abstract

The combination of businesses in the globalizing economy and different countries has led to
different accounting practices. Businesses have thus been forced to maintain different financial
statements and accounting records for each foreign market in which they operate. With the
development of international trade, a common financial report for businesses operating in foreign
markets has been evaluated and interpreted. It is to eliminate the differences in accounting of the
businesses operating in the international markets and to ensure that a common accounting system is
used. In this case, international accounting standards were published. To ensure compliance with
standards, International Accounting Standards (UMS) and International Financial Reporting
Standards (UFRS) have been translated into Turkish for better understanding and interpretation.
Turkish Accounting Standards (TMS) and Turkish Financial Reporting Standards (TFRS) were
created and published in the Official Gazette in 2005. Financial reporting standards require that the
financial status table, comprehensive revenue table and equity exchange sheet and cash flow table
be reported and presented together. Considerations for the preparation of the cash flow table are
regulated by the "TMS 7: Cash Flow Tables" standard as a separate standard. TMS 7 was released
for the purposes of performing the account period, which started after 31.12.2005. The cash flow
table shows the increase and decrease in cash flows arising from business activity transactions and
business activities. The purpose of the cash flow table is to explain the variation between an asset
item that is equal to cash and cash. The cash flow table traces the collections, payments, and uses
for the payments that the business has made. This study outlines descriptions and concepts
regarding the aspects, methods and cash flow statement that should be considered when preparing
the cash flow table.