TO THE GENERAL ASSEMBLY OF THE TURKISH CAPITAL MARKETS ASSOCIATION AUDITORS’ REPORT
28.03.2019
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 31.12.2018 for your approval, and hereby recommend that the Board of Directors be acquitted from its liabilities.
BOARD OF AUDITORS
Adnan BAHAR A.Albert KRESPİN C. Cem ÖNENÇ
AUDITOR AUDITOR AUDITOR
M. Selim YAZICI Mehmet AHKEMOĞLU
AUDITOR AUDITOR
57
TCMA 2018ANNUAL REPORTIndependent Auditor’s Report
To the Board of Directors of Turkish Capital Markets Association:
1) Opinion
We have audited the financial statements of Association of Turkish Capital Markets and Its Operating Entity (the Association) which comprise the balance sheet as at December 31, 2018 and the income statement for the year then ended, and notes to the financial statements including a summary of significant accounting policies.
In our opinion, the accompanying financial statements of Association of Turkish Capital Markets and Its Operating Entity for the year ended December 31, 2018 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) Emphasis of Matter - Basis of Accounting and Restriction on Use
We draw attention to Note 2 to the financial statements, which describes the basis of accounting. Accounting policies applied by the Association differ from the accounting principles generally accepted in other countries and International Financial Reporting Standards (IFRS) in material aspects and the effects of such differences 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. 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. Our opinion is not modified in respect of this matter.
4) Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of these financial statements in accordance with the accounting policies described in Note 2 to the accompanying financial statements, 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.
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
58
TCMA2018ANNUAL 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
Balkız Devrim Ünal, SMMM Partner
March 22, 2019 Istanbul, Turkey
59
TCMA 2018ANNUAL REPORTCurrent Period Audited December, 31 2018
Prior Period Audited December, 31 2017 Assets
Current assets:
Cash and cash equivalents 6,792,809 2,577,041
Securities 1,731,472 1,577,863
Receivables from operations 781,932 676,052
Prepaid expenses 319,618 188,158
Other current assets 5,141 2,247
Total current assets 9,630,972 5,021,361
Non - current assets:
Financial investments 10,242,042 10,242,042
Property and equipment 4,657,003 3,647,005
Intangible assets 321,603 682,390
Accumulated depreciation and amortization (4,977,069) (3,996,341)
Other non - current assets 7,822 3,155
Total non - current assets 10,251,401 10,578,251
Total assets 19,882,373 15,599,612
Liabilities and equity Current liabilities:
Short - term financial lease liabilities - 139,409
Trade payables 45,983 73,126
Other payables 26,759 28,144
Advances received 45,626 31,440
Taxes and other obligations 219,882 342,436
Deferred income and expense accruals 764,472 581,632
Liabilities for employees 708,197 599,139
Total current liabilities 1,810,919 1,795,326
Non - current liabilities:
Long - term financial lease liabilities - 185,879
Reserve for employee termination benefits 1,457,446 1,148,887
Total non - current liabilities 1,457,446 1,334,766
Total liabilities 3,268,365 3,130,092
Equity:
Funds 10,247,042 10,247,042
Statutory reserve 2,222,477 1,644,888
İncome surplus 4,144,488 577,590
Total equity 16,614,008 12,469,520
Total liabilities and equity 19,882,373 15,599,612