Can this amendment be used to manipulate company profits?

The regulation is tied to TFRS 9 standards and a specific investment entity status; therefore, rather than an arbitrary valuation, a transparent measurement based on market value is aimed for.

What does it mean for an ordinary stock market investor?

It allows you to see the real market value of the participations of the holding or partnership you invest in more clearly in the financial statements, and increases the transparency of the company.

BOARD DECISION31 July 2026

Fair Value Revolution in Companies from the Poa

Official titleDecision of the Public Oversight, Accounting and Auditing Standards Board Dated 28/07/2026 and Numbered 75935942-050.01.04-[44558]

The Public Oversight Authority has put into effect amendments regarding the 'fair value' option in the valuation of investments in associates and joint ventures in order to ensure compliance with international accounting standards.

Details of the Regulation

The Public Oversight, Accounting and Auditing Standards Authority (POA) has integrated the international updates made under 'IAS 28' into local legislation. This regulation provides flexibility regarding how participation investments held particularly by venture capital organizations, mutual funds, and similar entities are to be presented in financial statements.

Within the scope of the amendment, the said investment entities have obtained the opportunity to measure their investments in participations at 'fair value' within the framework of TFRS 9 standards, instead of the 'equity method'. In this way, entities will be able to reflect changes in the market value of their investments in the statement of profit or loss.

The regulation amended paragraphs 18 and 19 of TMS 28 and added a new paragraph numbered 45M. In connection with the application of the TFRS 17 standard, the implementation has been made effective for reporting periods ending on or after the date of its publication.

REGAS Commentary

This regulation directly concerns investment funds, venture capital companies, and accounting professionals rather than ordinary citizens in excess. Allowing companies to show their assets at more up-to-date market values in their financial statements, this amendment is expected to contribute to investors seeing the real value of the company more transparently.

Questions You Might Have

Can this amendment be used to manipulate company profits?: The regulation is tied to TFRS 9 standards and a specific investment entity status; therefore, rather than an arbitrary valuation, a transparent measurement based on market value is aimed for.
What does it mean for an ordinary stock market investor?: It allows you to see the real market value of the participations of the holding or partnership you invest in more clearly in the financial statements, and increases the transparency of the company.

Key Terms

Özkaynak Yöntemi: It is the method of adjusting the acquisition cost of the participation in line with the investor's share in the net assets of the participation.
Gerçeğe Uygun Değer: The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
IAS 28: The international accounting standard regarding investments in associates and joint ventures.

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