How Receivables are evaluated?
1-How receivables are evaluated?
Receivables are evaluated with carrying value.
On the other hand, the receivables based on deposit money or loan contract, are taken into consideration with the interests to be calculated.
Documented debts can be returned to the pervious condition of the amounts of the valuation day.
***If interest rate is explained in the note, this rate will be accepted however if not explained, official discount rate decided by Central Bank will be executed.
*** Banks or bankers and insurance companies return their receivables into the previous condition by executing official discount rate decided by Central Bank or return them to the pervious condition of the amounts of the valuation day.
2- HOW THE ESTABLISHMENT AND FORMATION EXPENSES ARE EVALUATED?
Establıshment and formatıon expenses are evaluated along with value in account.
Value in account cannot be more than the establıshment and formatıon expenses.
***Expenses for establishing of the institution, opening a new branch, or business expansion are these kind of expenses.
*** Activation of Establıshment and formation expenses is optional.
***Good will of real person or entities is also evaluated value in account.
3- HOW CASH IS CHECKED?
Cash is valued by nominal value; foreign currency is executed article 208 of tax procedure law.
4- HOW DEBT IS EVALUATED?
Debts are evaluated along with value in account. Debts based upon deposit money or loan contract are taken into account with the interests calculated to the valuation day.
5- HOW UNDUE DEBT IS EVALUATED?
Undue debt is evaluated in accordance with the valuation day rate.
If interest rate is explained in the note, this rate will be accepted however if not explained, official discount rate decided by Central Bank will be executed.
*** Banks or bankers and insurance companies return their receivables into the previous condition by executing official discount rate decided by Central Bank or return them to the pervious condition of the amounts of the valuation day.
6-HOW BOND VALUATION IS DONE?
Join stock company and state-owned economic enterprise have to evaluate their bonds over nominal par.
7-HOW RESERVE VALUATION IS DONE?
Cash cover is a certain amount of money whose amount isn’t known properly and it is separated for the coverage of the loss.
***Cash cover is evaluated by means of pacifying value in account.
***Special provisions regarding amortization records are conserved.
8- HOW ECONOIMIC ASSETS WHOSE VALUES AREN’T KNOWN, ARE EVALUATED?
Economic assets whose values aren’t known are evaluated along with tax values of buildings and terrains, while the others are along with fair value if it exists or with value in account or precedent value.
Source: Tax Procedure Law
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
