Assets – Muhasebe News

External assets in Turkey recorded USD 247.5 billion indicating an increase of 8.0%

MuhasebeNews — Fri, 06 Dec 2019 09:00:55 +0000

External assets in Turkey recorded USD 247.5 billion indicating an increase of 8.0%

According to the data published by Central Bank of Republic of Turkey, regarding the International Investment Position (IIP) at the end of September 2019, external assets recorded USD 247.5 billion indicating an increase of 8.0 percent compared to the end of 2018 and liabilities against non-residents recorded USD 599.2 billion indicating a decrease of 0.2 percent.

The net IIP, defined as the difference between Turkey’s external assets and liabilities, posted USD -351.6 billion at the end of September 2019, in comparison to USD -371.0 billion observed at the end of 2018.

As regards to sub-items under assets, at the end of September 2019, reserve assets recorded USD 101.1 billion indicating an increase of 8.7 percent, while other investment recorded USD 96.6 billion indicating an increase of 8,8 percent compared to the end of 2018. Currency and deposits of banks, one of the sub-items of other investment, recorded USD 51.1 billion indicating an increase of 14.3 percent compared to the end of 2018.

As regards to sub-items under liabilities, direct investment (equity capital and other capital) at the end of September 2019 recorded USD 157.4 billion indicating 5.9 percent increase in comparison to the end of the previous year, with the contribution of the changes in the market value and foreign exchange rates.

Portfolio investment decreased by 1.4 percent and recorded USD 138.0 billion compared to the end of 2018. Non-residents’ equity holdings recorded USD 31.9 billion reflecting an increase of 8.1 percent compared to the end of 2018. Non-residents’ holdings of GDDS (Government Domestic Debt Securities) recorded USD 16.3 billion with a decrease of 12.0 percent. Outstanding eurobond holdings of nonresidents posted USD 49.8 billion with an increase of 3.3 percent.

Other investment indicated a decrease of 2.5 percent to USD 303.8 billion compared to the end of 2018. FX deposits of non-residents held within the resident banks recorded USD 33.8 billion at the end of September 2019, reflecting an increase of 5.7 percent compared to the end of 2018, and TL deposits decreased by 3.6 percent recording USD 13.5 billion.

Total external loan stock of the banks recorded USD 71.0 billion decreasing by 13.0 percent compared to the end of 2018, and total external loan stock of the other sectors recorded USD 101.3 billion decreasing by 5.0 percent.

Source: Central Bank of Republic of Turkey / Link: https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Statistics/Balance+of+Payments+and+Related+Statistics/International+Investment+Position/
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.

Turkish Central Bank reserves exceed $104B in October

MuhasebeNews — Fri, 29 Nov 2019 07:00:42 +0000

Turkish Central Bank reserves exceed $104B in October

According to the news of Hürriyet Daily News, the Turkish Central Bank on Nov. 28 announced its official reserves amounted to $104.6 billion as of the end of October.

Total reserve assets jumped to 3.4% in October, versus the end of September, the bank’s international reserves and foreign currency liquidity report showed.

Foreign currency reserves – in convertible foreign currencies – totaled some $76.5 billion, up 3.8% compared to the previous month.

In October, the bank’s gold reserves – including gold deposits and, if appropriate, gold swapped – also rose 2.7% monthly to $26.6 billion.

In mid-December 2013, its total reserves hit their all-time peak at nearly $136 billion, including some $21 billion in gold reserves.

Source: Hürriyet Daily News / link: http://www.hurriyetdailynews.com/turkish-central-bank-reserves-exceed-104b-in-october-149230
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.

What is the VAT rate for properties that are company’s assets for less than 2 years?

MuhasebeNews — Mon, 11 Mar 2019 14:36:41 +0000

What is the VAT rate for the properties that are registered as a residence to the company’s assets?

The VAT rates for the selling of properties that are the company’s assets until 31.03.2019 are;

1% if the property is under 150 square meters,
8% if the property is over 150 square meters.

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.

If taxpayers in Turkey sell their real property entered as assets, would they have to pay taxes

MuhasebeNews — Tue, 05 Mar 2019 13:35:45 +0000

A taxpayer keeps accounting records on the basis of balance. If the taxpayer sells their real property that is entered as an asset, would it be possible for them to benefit from 50% exemption from income tax and VAT exemption?

Only corporate taxpayers are able to benefit from the Real Property Income Tax Exemption that is mentioned in the Value Added Tax Law and Corporate Tax Law. Income taxpayers can not benefit from this exemption.

Is the VAT rate still 8% when selling stores that are registered as assets?

MuhasebeNews — Thu, 03 Jan 2019 08:00:02 +0000

Which one do I have to pay regard to when selling a store that is registered as an asset of a construction firm, the VAT rate of 18% or the discounted amount (8%)?

8% will be applied until 31.03.2019.

Source: İSMMMO
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.

Rules and Procedures in Regard to Preparing Consolidated Financial Statements

MuhasebeNews — Fri, 17 Aug 2018 19:00:33 +0000

What are Consolidated Financial Statements?
What are the Rules and Procedures in Regard to Consolidated Financial Statements?

Consolidated Financial Statements: Financial information presentation (in which the assets, equity, liabilities, and operating accounts of a company can be seen) and its subsidiaries are combined and shown as belonging to a single reporting entity.

These are the rules and procedures in regard to preparing consolidated financial statement;

– Financial statement items of a group company should be aggregated separately.
– Goods and service sales done between group companies are deducted from gross sales and cost of sales. Profit and loss generated from purchase and sale done within group should be eliminated also by applying it to corrected parallel stocks.
– Income and expense items generated from transactions done within the group are eliminated from each other like amortizations, interests and dividends.
– “Allowance for taxation on current period profit and other legal liabilities” related to all consolidated partnerships should be involved in consolidated financial statements.
– Profit belonging to non-community shares of community’s shareholders should be presented as “Minority Shareholders’ Profit and Loss” and as a discount item in financial statement.

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.

What is Joint Stock Company?

MuhasebeNews — Sat, 17 Mar 2018 06:00:35 +0000

1- WHAT IS JOINT STOCK COMPANY?
1.1- Joint-stock company is a company whose capital is declared and divided into shares and who is only responsible for its assets because of its debts.
1.2- Shareholders are responsible to the company with their shares that they undertake.

***Except special provisions, these parts of provisions are applied to joint stock companies being subjected to special provisions.

2- WHAT ARE INCLUDED IN THE SUBJECT OF JOINT STOCK COMPANIES?
Joint stock companies can be established for every kind of legal economical purposes and subjects.

3- WHAT SHOULD BE THE AMOUNT OF CAPITAL IN ORDER TO ESTABLISH A JOINT STOCK COMPANY?
3.1- Registered capital, which is undertaken as a whole in articles of incorporation, cannot be less than 50.000 Turkish Lira. As for non-public joint stock companies which accepts registered capital system showing the maximum realm of authority of board of directors for capital increase, initial capital cannot be less than 100.000 Turkish Lira. Minimum capital amount can be increased by the Council of Ministers.
3.2- Within the scope of this law, initial capital in joint stock companies with registered capital is compulsory to provide in the establishment and when they move into this system. On the other hand, issued capital represents the total amount of nominal value of issued shares.
3.3- Unless non-public joint stock companies have necessary conditions, they are able to log out of registered capital system by getting permission from Ministry of Customs and Trade. Moreover, if they fail to fulfil the conditions while logging in the system, they can be logged out of the system by the Ministry even if they have no claim.

***Provisions of article 12 of Capital Market Law dated 28.07.1981 and numbered 2499 are reserved.

Source: Turkish Commercial Code

What is the Importance of Company’s Valuation in Turkey?

MuhasebeNews — Mon, 29 May 2017 14:52:07 +0000

Since mergers and acquisitions (m&a) have been popular and driven intense interest of the public for the last 10 years in Turkey, there have been a lot of news, analysis and comments on it both in general finance sector and financial media. On the other hand, the main subjects were valuation of a company that is acquired, sold, merged. This subject is of interest to public because it is a matter of monetary greatness and appreciation of company’s value. In this process, both businessmen and public concerning about this issue have been discussing the details of m&a. As a result of that, people have become familiar with some concepts like earnings before interest taxes depreciation and amortization (EBITDA) and discounted cash flow (DCF).

It is highly efficient to know the concepts and roughly get an idea about value of a company. Furthermore, it is very important that one must realize the benefits provided to bosses and directors. In case of an acquisition or a merging, it is required to know company’s value in detail. Eventually, negotiations will be carried out with potential buyers on the basis of company’s value; so it is quite essential to have an idea about it. Besides, some points are always important: if one knows how to determine company’s value and its methodology, he/she may increase the value of company by applying these concepts to all of the procedures and processes of the company. The duty of company management is providing maximum profit to shareholders. That profit should be maximization of a company’s normal profit rate rather than a normal profit rate earned every year. Under these circumstances, company’s valuation procedures should be turned into Key Performance Indicators (KPI). Aims of each employee in the company also should be turned into performance indicators. Thus, it will be a good management example to follow these indicators and try to make them stable.

One may find a lot of results about company valuation in Google; however, there are only 2 main procedures applied to non-public companies:

Discounted Cash Flow:it is the present value of free cash flow that company will create in the future.
EBITDA factor:it is a factor determined by multiplying EBITDA created by the company with its sector and a factor determined according to its position in sector.

Consequently, even though the concepts are different, these two procedures focuses on making profit (Actually company’s value does not depend on its assets, it depends on its performance/profit made by using its assets). Therefore, directors will both try to maximize company’s value and manage it “well” with Key Performance Indicators that they create according to these factors.

In line with this, Key Performance Indicators may include these followings: (These are listed as an example. It does not mean that they are complete/total/faultless in no sense. They vary because of company structure and culture and the situation they are in.)

Increase its profitability
Decrease capital requirements
Regulation of records and independent audit of financial tables
Systematization of transactions (Regulation of work-flow)
Prepare a growth plan and create a rota for growth plan
Paralleling key personnel with company’s rota
Conditioning relationships between external stakeholders with laws/customs

As it can be seen, some subjects are directly numeral and the others are for quality. I will share data about why I write these aforementioned subjects in this text.

Source: Alper UYAR,
24.04.2017,
İstanbul

The Determination of 2-Year Rule When Selling the Properties in line with the Sale and Release and Take Back Procedure According to Turkish Laws!

MuhasebeNews — Tue, 25 Apr 2017 14:43:50 +0000

The Determination of 2-Year Rule When Selling the Properties Being Subject to Lease Certificate Purchase/Sale Transactions in line with the Sale and Release and Get Back Procedure!

1- On condition that they are taken back at the end of the agreement and on the purpose of lease back within the scope of Leasing, Factoring and Financing Companies Law dated 21/11/2012 and numbered 6361,
The period of holding the assets in the active accounts of the leasing, participation, development and investment banks should be taken into consideration for the selling of transferred properties to
1.1- The financing companies by the corporations,
1.2- The development and investment banks and participation banks in the selling of properties to the third persons by the leasee on the occasion of sale and release and take back procedure.

2- In the selling of the properties transferred to the leasing companies to the third persons by the parent company for the purpose of lease certificate purchase/sale transactions within the scope of Capital Market Law dated 06.12.2012 and numbered 6362, the period of time of the active account of leasing company should be taken into consideration while calculating of period of holding the assets in the active account.

Source: Corporate Tax Law

Are Real Estates That in possession of Company’s Assets More Than 2 Years Subject to VAT in Turkey?

MuhasebeNews — Thu, 23 Mar 2017 07:00:13 +0000

ARE REAL ESTATES THAT IN POSSESSION OF COMPANY’S ASSETS MORE THAN 2 YEARS SUBJECT TO VAT IN TURKEY?
According to article 17/4-r of VATA, the handover process of real estates, which have been in possession of company’s assets or municipalities or provincial special administrations at least for 2 years, are exempt from VAT.

With regard to that law, the handover process of immovable (premises, terrain, structure), which have been in possession of company’s assets or municipalities or provincial special administrations at least for 2 years, are also exempt from VAT. If these properties are sold at an auction, there will be exceptions.

Nevertheless, exception clauses are not within the scope of institutions that buy and sell these properties because of commercial reasons. Municipalities and provincial special administrations that buy and sell these properties because of commercial reasons cannot take an advantage of those exceptions.

Source: Value Added Tax Act