Under Article 14 of Labour Law No. 1475, still in force, an employee meeting the conditions is paid severance equal to 30 days' wages for each full year of service; the wage used may not exceed the ceiling. Under TFRS the provision is calculated using an actuarial method, while under BOBİ FRS (Turkish GAAP for SMEs) simpler methods may be used.
Failing to recognise any provision is one of the most common reasons for a qualified opinion in an independent audit.
Source: Labour Law No. 1475 Art. 14
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Employee benefits (TAS 19)The standard governing accounting for short- and long-term benefits provided to employees in exchange for their services.Qualified opinionThe opinion the auditor expresses when misstatements, or a lack of evidence, are material but not pervasive.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.