International Conference on Eurasian Economies
1-3 July 2014 – Skopje, MACEDONIA
Paper detail
Paper ID : 882
Status : Paper published
Language : Turkish
Topic : Finance and Financial Crises
Presenter: Prof. Dr. Emine Fırat
Session : 3C Finansal Kriz II
The Role of Financial Reporting in Occurrence of Financial Crises: Are The Regulations Generated by International Financial Reporting Standards Suffic
Finansal Krizlerin Oluşmasında Finansal Raporlamanın Rolü: Uluslararası Finansal Raporlama Standartlarının Getirdiği Düzenlemeler Yeterli mi?
- Prof. Dr. Emine Fırat (Aksaray University, Türkiye)
- Asst. Prof. Dr. Hakan Seldüz (Aksaray University, Türkiye)
Abstract
Financial liberalization politics are utilized to cope with the economic dimension of globalization. They had important roles in occurrence and outspread of financial crises; and economic crises were triggered by the spread of financial crises to real economy. Because of financial liberalization; financial sector grew disproportionately developing faster than real economy. As the financial tools and methods got diversified, the sanction power of national regulations weakened due to the global dimension and a functional auditing mechanism could not be established. This enabled creative accounting practices and financial reporting manipulations and caused financial reports to become misleading and decreased their reliability. It is claimed by many researchers, that financial reporting again played an important role in the occurrence and spreading of the 2008 crisis, despite the fundamental amendments laid down with IFRS in 2003 and the continual updates. This study, which is displaying the characteristic features of a qualitative research, is carried out mainly by literature review. A wide and comprehensive investigation is meticulously executed on IFRS versions and drafts, the related legislation and regulations and the results of the some important researches about the allied subjects. The role of financial reports in occurrence of financial crises has been displayed. The effects of IFRS on financial reports are explored especially in terms of realism, transparency and reliability. The adequacies of the regulations are discussed, the risky points are spotlighted and proposals are put forward to minimize these risks in accordance with the principals of corporate governance.
JEL codes: G01, M40, M48
Fırat, Emine, Seldüz, Hakan (2014). "The Role of Financial Reporting in Occurrence of Financial Crises: Are The Regulations Generated by International Financial Reporting Standards Suffic" in Proceedings of International Conference of Eurasian Economies 2014, pp.515-524, Skopje, MACEDONIA.
DOI: https://doi.org/10.36880/C05.00882
