Affiliation Report

• Seda Bayraktar, CPA
• Partner
• Accounting Compliance & Reporting
• E-mail to Seda

In accordance with the Turkish Commercial Code, companies (joint stock companies and limited liability companies) must prepare an “Affiliate Report”. The referred article reads as follows;

The board of directors of the subsidiary must prepare a report related to the companies’ relations with the parent company and dependent companies within the first quarter of the year. This report includes all legal transactions which the companies conducted in the previous year with the parent company and any companies that the parent company participates in. This report also includes any compensation of losses of subsidiaries by the parent company.

The transactions as stated in the aforementioned must be in compliance with “true and fair accounting principles”.

In addition, the board of directors of the subsidiary must explain whether or not the subsidiary incurred any damages resulting from taking or refraining from taking the measure pertaining to the transactions with the group of companies including the parent company. If the subsidiary incurred damage, the board of directors must also explain whether or not the damage was compensated. This explanation must be included in the report.

Cerebra provides services for the preparation of this report on behalf of the board of directors.