**2.2 Bank Uniform Chart of Accounts**

Banks and leasing and factoring companies have a Uniform Chart of Accounts different from the other entities due to the different types of activities and operations of the financing companies. The operations of such institutions are recorded by using Bank Uniform Chart of Accounts that is recognized under the provisions of the Banks Association of Turkey. Banks are subject to the Bank Uniform Chart of Accounts and the regulatory authority, BRSA. Bank Uniform Chart of Accounts consists of the following groups [3]:


*Accounting and Finance - New Perspectives on Banking, Financial Statements and Reporting*

groups and accounts.

added in the draft chart of account [2]:

(accounts 111, 112, 201, and 202)

and 242 and groups 34 and 44)

control (account number 516)

and account numbers 643 and 653)

245–249 and account numbers 647 and 657)

Uniform Chart of Accounts is divided into nine account classes, from 1 to 9. Likewise, each account class is divided into ten account groups, ranging from 0 to 9. There are a total of ten main accounts in each account group, from 0 to 9. The main accounts are given three-digit numbers. For instance; 1 Current assets (account class), 10 Cash and Cash Equivalents (account group), 100 Cash (main account). In the Uniform Chart of Accounts coding, various code systems are used while numbering the accounts. Account codes make it easy to distinguish between account

According to the Uniform Accounting System, enterprises have to establish their accounting systems in accordance with the uniform accounting framework and chart of accounts. Businesses plan their accounts in advance and make a list of them. With the introduction of new standards in Turkey, there was a need for new account codes. There are a number of problems related to the definition of new account codes due to new applications of the Uniform Chart of Accounts related to the application of TFRS and FRS for LMEs such as account of investment property and account of qualified assets held for sale purpose. Therefore, a serious review and revision is needed.

The draft chart of account has been drawn up by POAASA that will enable the companies to establish their accounting systems so that they can prepare their financial statements. In the drafting of the chart of account, account groups and accounts have added to ensure that all companies have access to financial statement data directly. This draft chart of account was submitted to the public on 25.12.2018. After taking the comments of the public and related institutions and organizations, the final version of the new chart of account will be given. These accounts have

• Financial investments whose fair value difference is measured at amortized cost by financial investments reflected in other comprehensive incomes

• Financial assets from ongoing construction (undertaking), project or service contracts, and obligations arising from these contracts and construction works performed in advance (groups 14 and 24 with the exception of accounts 142

• Live assets and gains and losses related to them (account numbers 17 and 27

• Liabilities related to noncurrent assets classified for sale and groupings classified as held for sale (account numbers 196–19 9 and account numbers 396–39 9)

• Investment properties and related income and expenses (accounts numbers

• Deferred tax assets and liabilities and deferred tax income and expense effects

(account numbers 289 and 489 and account numbers 692 and 696)

• The effect of mergers involving enterprises or enterprises subject to joint

• Income and expenses accumulated in shareholders' equity (groups 55 and 56)

• Other comprehensive income and expenses for the period (groups 80, 81, 82,

**14**

and 83)


The accounts in each group are divided into two as Turkish currency and foreign currency. The foreign currency-denominated accounts are the accounts in which the amounts arising from the foreign currency transactions of the bank are recorded. Foreign currency balances in these accounts are valued at the end of the period and transferred to related accounts. Foreign currency interest, commissions, and income received from foreign currency accounts and transactions are translated into Turkish Lira at the exchange rates prevailing at the transaction date and recorded in the related foreign currency profit/loss accounts. Even if the revenues are collected in Turkish currency instead of foreign currency, they are recorded in the related foreign currency profit and loss accounts. In the Uniform Chart of Accounts, the accounts working for Turkish Lira and foreign currency transactions are separated at the general ledger level. If the last digit of the general ledger accounts is an even number, then it is in Turkish Liras, and if the last digit is an odd number, then it indicates a foreign currency account.

A new account cannot be opened in the book at a new level without the permission of the BRSA. For the accounts that are opened at the level of general ledger and do not have any subaccounts, banks can open auxiliary, sub-, and subordinate accounts if needed. If there is no special account in which to record a transaction, a special account must be opened with permission from the BRSA for such transactions.
