A COMPARISON OF THE BANKS' INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS UNDER TFRS 10 IN TERMS OF FINANCIAL PERFORMANCE AND ACTIVITY RESULTS

Abstract

The conceptual framework of consolidated financial statements are prepared Turkish Financial Reporting Standard 10 Consolidated Financial Statements and literature research are included and the data assembled from individual/consolidated financial statements(2017-2018)  prepared by the deposit banks were used in order to do the research. In the study aimed to reveal the effect of consolidation, firstly, the absolute and percentage changes in the total assets, equities and net profit items were calculated. Secondly, (subsidiaries/assets), (net profit/assets) and (net profit/shareholders equities) ratios were calculated for both solo and consolidated statements. The significance of the difference between the solo-consolidated financial statements was determined by paired samples t-test. The results show that the consolidation of the financial statements had a significant effect on financial statements' item basis and on the profitability ratios. It is indicated that this effect was statistically significance for the two years of the study on both net profit and equity's profitability items and for the year 2017 on assets profitability. Finally, in the regression model created to explain the changes in profit, it was found that the changes in equity affect the changes in the profit.