**2.1 Uniform Chart of Accounts**

The chart of accounts is expressed as a list of accounts to be used in accounting. Uniform Chart of Accounts is a system that is organized for the systematic execution of all accounts held in an enterprise and to ensure that the same events are always recorded in the same accounts.

In Turkey, Uniform Chart of Accounts mentioned in the Accounting System Application General Communiqué, Order No.1 published in the Official Gazette dated 26.12.1992 and numbered 21,447 (repeated) became a necessity for all businesses and accounting activities as of 01.01.1994. Thus, it is aimed to provide unity in accounting practices in enterprises. Uniform Chart of Accounts is a scale that shows the accounts of the activities of the enterprises, and the enterprises comply with the chart of accounts and transfer the same type of documents to the accounting records and financial statements according to the same chart of accounts and the same accounting system. The purpose of the Uniform Chart of Accounts is to use the same chart of accounts for companies holding books on the balance sheet basis and to include the economic events occurring in enterprises in the same accounts within the framework of the same systems and principles. Uniform Account Chart framework [1] is as follows:


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 groups and accounts.

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 added in the draft chart of account [2]:


**15**

transactions.

*National Accounting Standards in Turkey DOI: http://dx.doi.org/10.5772/intechopen.84364*

**2.2 Bank Uniform Chart of Accounts**

consists of the following groups [3]:

2. Investment values and other assets

3. Deposits and other foreign resources

0. Return values

1. Credits

4. Equity

5. Interest income

6. Interest expenses

7. Noninterest income

8. Noninterest expenses

9. Off-balance sheet accounts

number, then it indicates a foreign currency account.

income and expenses (accounts 684 and 697)

• Income and expenses relating to discontinued operations and taxes on these

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

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

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

• Income and expenses relating to discontinued operations and taxes on these income and expenses (accounts 684 and 697)
