Presidential Decisicon on Determination of Companies Subject to Independent Audit
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Ece Akbaba
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Mahmut Barlas
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The Presidential Decisicon on the Determination of the Companies Subject to Independent Audit published in the Official Gazette No. 32029 dated November 30, 2022 with the Decisicon No. 6434 and the procedures and principles regarding the companies subject to audit under Article 398 of the Turkish Commercial Code No. 6102 dated 31/01/2011 were determined.
As of January 1, 2023, which is the effective date of this decision, the Decision on the Determination of Companies Subject to Independent Audit, which was put into effect by the Decisicon of the Council of Ministers dated 26/03/2018 and numbered 2018/11597, will be abolished and we submit for your information the changes between the current regulation and the new regulation that will enter into force with the Presidential Decisicon No. 6434 as follows.
- Comparative Table of Threshold Values for Companies whose Capital Market Instruments are not traded on a Stock Exchange or Other Organized Markets but are considered publicly traded within the scope of the Capital Market Law
In terms of Total Assets | In terms of Annual Net Sales Revenue | In terms of Number of Employees | |
Council of Ministers Decision dated 26/03/2018 | 15 Million Turkish Liras | 20 Million Turkish Liras | 50 People |
Presidential Decisicon dated 30/11/2022 | 30 Million Turkish Liras | 40 Million Turkish Liras | 50 People |
- Comparative Table of Threshold Values of the Companies Listed in Annex (II) to the Resolution
In terms of Total Assets | In terms of Annual Net Sales Revenue | In terms of Number of Employees | |
Council of Ministers Decision dated 26/03/2018 | 30 Million Turkish Liras | 40 Million Turkish Liras | 125 People |
Presidential Decisicon dated 30/11/2022 | 60 Million Turkish Liras | 80 Million Turkish Liras | 100 People |
- Comparative Table of Thresholds for Companies Not Covered by Annex (I) and (II) of the Decisicon
In terms of Total Assets | In terms of Annual Net Sales Revenue | In terms of Number of Employees | |
Council of Ministers Decision dated 26/03/2018 | 35 Million Turkish Liras | 70 Million Turkish Liras | 175 People |
Presidential Decisicon dated 30/11/2022 | 70 Million Turkish Liras | 150 Million Turkish Liras | 150 People |
The Presidential Decisicon dated 30/11/2022 will enter into force as of January 1, 2023; companies listed in Annex (I) of the Decisicon will be subject to independent audit without being subject to any thresholds and conditions; companies outside the Annex (I) List will be subject to independent audit as of the following accounting period if at least two of the thresholds of total assets / annual net sales revenue / number of employees exceed the thresholds to be effective as of January 1, 2023 in two consecutive accounting periods.
The full text of the Presidential DecisionNo. 6434 is available here.