ANALYSIS OF CAPITAL MAINTANANCE IN THE SCOPE OF TURKISH FINANCIAL REPORTING STANDARDS AND EFFECTS OF COMPANY VALUES

Correct determination the current and unadultared values of companies' periodic profit is of a great importance at the continuity for companies in markets. Therefore the periodic profit’s correct determination and the capital maintannace is one of the main objectives of International Financial Reporting Standards. Thus it is the most important evidence that the concept of "Capital Maintanance" is emphasized momentously in the "Conceptual Framework" of International Financial Reporting Standards. However, it is thought that the operations to protect the capital in the conceptual framework are insufficient at the point of capital maintanance. In this context, a proposal has been made to determine the current and unadulterated values of periodic profits of the companies and thus to miantain the capital in real sense. Within the scope of this proposal, the current and unadulterated values of previous years profits have been re-determined by going back the previous year’s financial statements of Isuzu A？ which is traded in Stock Exchange of Istanbul. As a result of this finding, it was determined that the profit-loss amounts which was declared by the companies were irrelevant from the current profit-loss amounts and therefore the companies have distributed some of shareholders equities instead of dividends