A Look At The Differences Between Participation Finance Accounting Standard-1 and Interest-Free Finance Accounting Standard-1 and Evaluation with Content Analysis

Mustafa Kısakürek; Ayşe Zeynep Karci

Article Details

A Look At The Differences Between Participation Finance Accounting Standard-1 and Interest-Free Finance Accounting Standard-1 and Evaluation with Content Analysis

Authors:

Mustafa Kısakürek | Ayşe Zeynep Karci

Publisher:

Kahramanmaras Sutcu Imam University

Main Topics:

Ekonomi | İşletme ve Yönetim Müfredatı ve Öğretimi

Journal:

Kahramanmaraş Sütçü İmam Üniversitesi Sosyal Bilimler Dergisi Vol.22 Issue 1, pp.469-490

Document Type:

Article

Publication Date:

4/2025

Document Language:

Turkish

Document ID (Org No.):

2001346601

pISSN:

1304-8120

Keywords:

Abstract:

 The increasing need for an interest-free banking system has become evident due to the diverse sensitivities of individuals regarding the integration of their savings into the economy. Interest-free financial institutions primarily operate on the basis of profit-loss sharing, adhering to Islamic principles, and providing alternative financing options to investors. The leading entities in this sector are participation banks. According to the Turkish Commercial Code and the Banking Law, participation banks must comply with the regulations of the Banking Regulation and Supervision Agency BRSA and the Turkish Accounting Standards TAS and Turkish Financial Reporting Standards TFRS issued by the Public Oversight Accounting and Auditing Standards Authority KGK. Participation banks are required to report in accordance with the fundamental principles of interest-free finance. Consequently, KGK has issued the Interest-Free Finance Accounting Standards IFFAS, which are based on the standards regulating the interest-free finance sector in many Islamic countries. This set includes a conceptual framework and 27 accounting standards. On December 29, 2023, KGK revised and published the Participation Finance Accounting Standard-1 PFAS-1, incorporating individual retirement and insurance transactions into interest-free banking processes. This study examines IFFAS-1 and PFAS-1, comparing these standards to highlight similarities and differences. Additionally, a word cloud and word combination analysis were conducted to identify distinctions.

 The increasing need for an interest-free banking system has become evident due to the diverse sensitivities of individuals regarding the integration of their savings into the economy. Interest-free financial institutions primarily operate on the basis of profit-loss sharing, adhering to Islamic principles, and providing alternative financing options to investors. The leading entities in this sector are participation banks. According to the Turkish Commercial Code and the Banking Law, participation banks must comply with the regulations of the Banking Regulation and Supervision Agency BRSA and the Turkish Accounting Standards TAS and Turkish Financial Reporting Standards TFRS issued by the Public Oversight Accounting and Auditing Standards Authority KGK. Participation banks are required to report in accordance with the fundamental principles of interest-free finance. Consequently, KGK has issued the Interest-Free Finance Accounting Standards IFFAS, which are based on the standards regulating the interest-free finance sector in many Islamic countries. This set includes a conceptual framework and 27 accounting standards. On December 29, 2023, KGK revised and published the Participation Finance Accounting Standard-1 PFAS-1, incorporating individual retirement and insurance transactions into interest-free banking processes. This study examines IFFAS-1 and PFAS-1, comparing these standards to highlight similarities and differences. Additionally, a word cloud and word combination analysis were conducted to identify distinctions.

 The increasing need for an interest-free banking system has become evident due to the diverse sensitivities of individuals regarding the integration of their savings into the economy. Interest-free financial institutions primarily operate on the basis of profit-loss sharing, adhering to Islamic principles, and providing alternative financing options to investors. The leading entities in this sector are participation banks. According to the Turkish Commercial Code and the Banking Law, participation banks must comply with the regulations of the Banking Regulation and Supervision Agency BRSA and the Turkish Accounting Standards TAS and Turkish Financial Reporting Standards TFRS issued by the Public Oversight Accounting and Auditing Standards Authority KGK. Participation banks are required to report in accordance with the fundamental principles of interest-free finance. Consequently, KGK has issued the Interest-Free Finance Accounting Standards IFFAS, which are based on the standards regulating the interest-free finance sector in many Islamic countries. This set includes a conceptual framework and 27 accounting standards. On December 29, 2023, KGK revised and published the Participation Finance Accounting Standard-1 PFAS-1, incorporating individual retirement and insurance transactions into interest-free banking processes. This study examines IFFAS-1 and PFAS-1, comparing these standards to highlight similarities and differences. Additionally, a word cloud and word combination analysis were conducted to identify distinctions.

 İnsanların farklı hassasiyetlerinden dolayı tasarruflarını ekonomiye katmak amacıyla faizsiz bankacılık sistemine olan ihtiyaç gün geçtikçe daha çok arttığı görülmektedir. Faizsiz finans kuruluşları temelde kâr-zarar ortaklığına dayanan, İslamî kuralları esas alan ve yatırımcılara alternatif finansman sağlayan finans kuruluşları olarak çalışmaktadır. Bu kuruluşların başında katılım bankaları gelmektedir. Katılım bankaları, Türk Ticaret Kanunu ve Bankacılık Kanununa göre, Bankacılık Düzenleme ve Denetleme Kurumu BDDK düzenlemeleri ile Kamu Gözetimi Muhasebe ve Denetim Standartları Kurumu KGK tarafından yayınlanan Türkiye Muhasebe Standartlarına TMS ve Türkiye Finansal Raporlama Standartlarına TFRS uymak zorundadır. Katılım bankalarının faizsiz finansın temel ilkelerine uygun bir şekilde raporlama yapmaları gerekmektedir. Oluşan bu ihtiyaç sonucunda KGK, birçok İslam ülkesinde faizsiz finans sektörünü düzenleyen standartları esas alınarak, Faizsiz Finans Muhasebe Standartları FFMS yayınlanmıştır. Bu standart seti 1 adet kavramsal çerçeve ve 27 adet muhasebe standardından oluşmaktadır. KGK 29 Aralık 2023te FFMS-1i revize Katılım Finans Muhasebe Standardı-1 KFMS-1i yayınlamıştır. KFMS-1de faizsiz bankacılık işlemlerine bireysel emeklilik ve sigortacılık işlemleri de eklenmiştir. Bu çalışmada, FFMS-1 ve KFMES-1 incelenmiş, bu standartlar arasında mukayese yapılarak benzerlikler ve farklılıklar ortaya konmaya çalışılmıştır. Ayrıca farklılıkların belirlenmesi amacıyla kelime bulutu ve kelime kombinasyonu analizi yapılmıştır.

Article Details

A Look At The Differences Between Participation Finance Accounting Standard-1 and Interest-Free Finance Accounting Standard-1 and Evaluation with Content Analysis

Authors:

Mustafa Kısakürek | Ayşe Zeynep Karci

Publisher:

Kahramanmaras Sutcu Imam University

Main Topics:

Ekonomi | İşletme ve Yönetim Müfredatı ve Öğretimi

Journal:

Kahramanmaraş Sütçü İmam Üniversitesi Sosyal Bilimler Dergisi Vol.22 Issue 1, pp.469-490

Document Type:

Article

Publication Date:

4/2025

Document Language:

Turkish

Document ID (Org No.):

2001346601

pISSN:

1304-8120

Faizsiz Finans

Faizsiz Bankacılık

Bireysel Emeklilik

Sigortacılık

Issues

Article Details

A Look At The Differences Between Participation Finance Accounting Standard-1 and Interest-Free Finance Accounting Standard-1 and Evaluation with Content Analysis

Authors: Mustafa Kısakürek | Ayşe Zeynep Karci

Publisher: Kahramanmaras Sutcu Imam University

Main Topics: Ekonomi | İşletme ve Yönetim Müfredatı ve Öğretimi

Journal: Kahramanmaraş Sütçü İmam Üniversitesi Sosyal Bilimler Dergisi Vol.22 Issue 1, pp.469-490

Document Type: Article

Publication Date: 4/2025

Document Language: Turkish

Document ID (Org No.): 2001346601

pISSN: 1304-8120

Faizsiz Finans

Faizsiz Bankacılık

Bireysel Emeklilik

Sigortacılık

Issues

Authors:

Mustafa Kısakürek | Ayşe Zeynep Karci

Publisher:

Kahramanmaras Sutcu Imam University

Main Topics:

Ekonomi | İşletme ve Yönetim Müfredatı ve Öğretimi

Journal:

Kahramanmaraş Sütçü İmam Üniversitesi Sosyal Bilimler Dergisi Vol.22 Issue 1, pp.469-490

Document Type:

Article

Publication Date:

4/2025

Document Language:

Turkish

Document ID (Org No.):

2001346601

pISSN:

1304-8120