The Effects of Exchange Rate Changes on Financial Statements: A Study on Selected BIST 30 Companies

Abstract

The purpose of this research is to examine the effects of currency changes on the financial statements of businesses before and after the Covid 19 pandemic period, within the framework of the regulations introduced by TAS 21 Effects of Currency Changes. The data used in the research were obtained from the 6-year (2017-2022) independent financial audit reports of 15 selected companies traded in the BIST 30 index. The changes in the other income and expenses, Finance income and expenses, Revenue, Cost of Sales and Gross profit of the enterprises from the main activities were subjected to Kruskal Wallis H analysis. The results of the study showed that there is a generally positive, statistically significant relationship between exchange rate changes and financial statements. Currency changes; While it had a significant effect on other income, revenue, cost of sales and Gross profit of companies from main activities, it did not have a significant effect on other expenses and financing income/expenses from main activities.