The Importance Of Financial Reporting During Privatization: Turkish Case
AbstractPrivatization has been on a lot of countries’ agenda, especially for the emergingcountries for a long time. In Turkey, as an emerging country, privatization plan has been a veryhigh priority among the State Budget income items for three decades. To identify and to explore theaccounting role in privatization is the critical issue for the countries under privatization process. Inthis study, the importance of financial reporting during privatization process is examined. Theoverall responsibility of accounting in privatization is to develop investor confidence to channel theflows of funds and to ensure the effective and efficient use of capital funds. Therefore, without asound accountancy framework, the privatization process would not generate the desired long termeconomic, social, and financial development results. Therefore, we analyzed the period of Turkishprivatization experience by underlying the importance of financial reporting in this process. Forthis purpose, in the first part of the study, we defined the privatization and argued the positive andnegative opinions about it. In the second part, we clarified the role of accounting in privatizationprocess under disclosure, transitional problems, training, valuation problems, and inflationaccounting subsections. In the third part, we discussed the recent accounting developments whichmay effects privatization in Turkey. In the fourth part, we summarized the implementation ofprivatization in Turkey. Then, we mentioned the key issues in privatization process for emergingeconomies. Based on the Turkey’s privatization practices, financial reporting has a very importantrole in the SOE’s privatization process. In our point of view, since accounting has an importantrole in privatization, this role takes place before, during and also after the privatization. It shouldbe taken into consideration that the main objective of privatization is not only to privatize SOE’s,but also keep the sustainability of privatized SOE’s. While privatization creates sources for newinvestments of the governments, it should support the effectiveness and economics of goods andservices in the area of privatization. So the sustainability of privatized companies is very importantas well as their sales. All of the above purposes can be controlled by solely accounting.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia in its journal Annales Universitatis Apulensis Series Oeconomica.
Volume (Year): 2 (2010)
Issue (Month): 12 ()
Contact details of provider:
privatization; accounting; financial reporting; emerging economies; state owned enterprises;
Find related papers by JEL classification:
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
- L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dan-Constantin Danuletiu).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.