In Turkey, the most important application of TAS 19 is the severance pay obligation. Severance pay is treated as a defined benefit plan and calculated using actuarial methods (discount rate, salary growth, probability of leaving); actuarial gains and losses are recognised in other comprehensive income.
Provisions for unused leave also fall within the scope of the standard.
Source: TAS 19
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Provision for severance payThe liability recognised in the financial statements for severance pay payable when employees leave after meeting the statutory conditions.Other comprehensive incomeItems of income and expense recognised directly in equity rather than in profit or loss.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Amortised costThe amount at which a financial asset or liability is measured at initial recognition, minus principal repayments, plus cumulative amortisation calculated using the effective interest method.AssociateAn entity over which the investor has significant influence but not control or joint control.BOBİ FRS (Turkish GAAP for SMEs)The financial reporting standard issued by the POA for large and medium-sized entities that are subject to independent audit but do not apply TFRS.
Last updated: October 22, 2026 · This definition is for general information only.