21.03.2018
The Association’s accounts and transactions have been audited on a monthly basis.
It has been established that the records of the Turkish Capital Markets Association have been kept in accordance with the relevant regulations and accounting principles, at that they present at true and fair view of the financial position of the Association.
We hereby present the balance sheet, income statement and final chart of accounts as well as the Auditors’ Report for the year ended 31.12.2017 for your approval, and hereby recommend that the Board of Directors be acquitted from its liabilities.
BOARD OF AUDITORS
E. Pamir KARAGÖZ Murat GÜLER M. Aşkın DOLAŞTIR
AUDITOR AUDITOR AUDITOR
Mehmet Ali ERSARI Mehmet AHKEMOĞLU
AUDITOR AUDITOR
Auditors’ Report
51 TCMA 2017 Annual Report
To the Board of Directors of Association of Turkish Capital Markets:
1) Opinion
We have audited the financial statements of Association of Turkish Capital Markets and Its Operating Entity (the Association) which comprise the statutory balance sheet as at December 31, 2017 and the statutory income statement for the year then ended, and notes to the financial statements including a summary of significant accounting policies and other explanatory notes.
In our opinion, the accompanying financial statements of Association of Turkish Capital Markets and Its Operating Entity for the year ended December 31, 2017 are prepared, in all material respects, in accordance with the accounting policies described in Note 2 to the balance sheet.
2) Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Association in accordance with the ethical requirements that are relevant to our audit of the financial statements in Turkey, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
3) Other Matter
This report has been prepared solely for the information and use of the members and the Management of the Association and should not be used for any other purpose or distributed to any other parties.
The effect of differences between the accounting policies described below and accounting principles generally accepted in countries in which the accompanying financial statements are to be distributed and International Financial reporting Standards (IFRS) have not been quantified in the accompanying financial statements. Accordingly, the accompanying financial statements are not intended to present the financial position and financial performance of the Association in accordance with the accounting principles generally accepted in such countries and IFRS.
4) Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting policies described in Note 2 to the accompanying statutory balance sheet, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, Management is responsible for assessing the Association’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Association or to cease operations, or has no realistic alternative but to do so.
Management is responsible for overseeing the Association’s financial reporting process.
Independent Auditor’s Report
Güney Bağımsız Denetim ve SMMM A.Ş.
Eski Büyükdere Cad. Orjin Maslak No: 27 Maslak, Sarıyer 34398 İstanbul - Turkey
Tel: +90 212 315 3000 Fax: +90 212 230 8291 ey.com
Ticaret Sicil No: 479920 Mersis No: 0-4350-3032-6000017
52 TCMA 2017 Annual Report
5) Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.
• Conclude on the appropriateness of Management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Association’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Association to cease to continue as a going concern.
Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi A member firm of Ernst & Young Global Limited
Sinem Arı Öz, SMMM Partner
March 21, 2018 Istanbul, Turkey
53 TCMA 2017 Annual Report
Current Period Prior Period
Audited Audited
December, 31 2017 December, 31 2016 Assets
Current assets:
Cash and cash equivalents 2,577,041 1,572,823
Securities 1,577,863 1,277,524
Receivables from operations 676,052 526,003
Prepaid expenses 188,158 531,956
Other current assets 2,247 12,904
Total current assets 5,021,361 3,921,210
Non - current assets:
Financial investments 10,242,042 8,282,042
Property and equipment 3,647,005 3,581,680
Intangible assets 682,390 263,302
Accumulated depreciation and amortization (3,996,341) (3,828,215)
Other non - current assets 3,155 3,155
Total non - current assets 10,578,251 8,301,964
Total assets 15,599,612 12,223,174
Liabilities and equity Current liabilities:
Short - term financial lease liabilities 139,409
-Trade payables 73,126 31,911
Other payables 28,144 20,401
Advances received 31,440 25,466
Taxes and other obligations 342,436 192,674
Deferred income and expense accruals 581,632 480,308
Liabilities for employees 599,139 598,020
Total current liabilities 1,795,326 1,348,780
Non - current liabilities:
Long - term financial lease liabilities 185,879
-Reserve for employee termination benefits 1,148,887 942,464
Total non - current liabilities 1,334,766 942,464
Total liabilities 3,130,092 2,291,244
Equity:
Funds 10,247,042 8,287,042
Statutory reserve 1,644,888 1,032,035
Income surplus 577,590 612,853
Total equity 12,469,520 9,931,930
Total liabilities and equity 15,599,612 12,223,174