Abstract: In outer financial topics, sharp intersections has been faced indisturial enterprises very often due to global crises and their effects. With the effects of global competition, industrial enterprises have to understand IFRS (International Financial Reporting Standards) applications which forms their accounting legs for the activities of internationalization of accounting in very short time and accellerated their adaptation to these standards. Standards composed of eight of current IFRS which accepted 41 IAS (International Accounting Standards) as references and their explanations as a whole has been accepted as the expression of internationalization in accounting. With the application of all standards that accepted by IASB (International Accounting Standards Board), industrial enterprises especially enterprises that already offered their shares to public were expected to save the rights of share holders and enlighten them. It is obvious that financial reports will be approach to ideal about transparency and giving right information by reflecting the truth, clarification perspectives. Integration to international accounting standards which were used to expressing their financial situation as a common language by industrial enterprises in global medium will be an important factor in obtaining sources from financial market and repetition and international commercial of the firms. In this study, compatibility degrees to IFRS and IAS of 500 industrial enterprises and if there is a statistically significant compatibility degree difference among enterprises with and without foreign partners in Turkey were tested. For conclusion adoptation levels of industrial enterprises considering intensiveness at fair level, at partly good level, at slightly bad level.

INTRODUCTION

Enterprises mainly multinational enterprises have been faced different and partially contradictory national standards. Therefore, it is important to coherent of all standards in terms of firm along with the other units (Van Der Tas, 1988).

It has been a good improvement on previous trends moving to simple accounting standards like FASB (Financial Accounting Standards Board in England) and IASB (International Accounting Standards Board in United State). Both previously published diffferent standards but reached an agreement by clearly expressing their commitment to reach an agreement on the United State standards (USGAAP) and international accounting standards (IAS/IFRS) which will be concluded on the signing of the Norwalk Treaty.

Some modifications has been made according to IFRS based on Declaration of Capital Market Accounting Standards which was later become a mandatory startin 1 January 2005 for he firms in Turkish share as well as 91 country in Turkey (Aysan, 2007). International coherence in financial tables is very important for sides who has been using these data. Thus confidence level of these tables shows the deepness of details of the financial data and transparecy of country (Shalin and Roger, 2004).

In many researches, the importance of adoptation to IFRS and IAS in order to provide transparency and full information functions of financial tables about credit costs based on the risk has been mentioned (Doyrangol and Muge, 2006; IASB, 2009; Casu, 2006; Tiskens, 2003).

Credit organizations used the financial tables of the firms will use grading value which was provided by independent grading companies based on Basel II in giving credits to firms. One of the factors effecting grading level is preparing financial reports based on the international accounting rules.

Enterprises will be evaluated with respect to measurements such as financial tables, financial reports period, local administrative applications and sectorial analysis by grading firms. According to determined results each firm will have a grade and card. These grades will be the major factor in the evaluation of a firm to get credits and the rate of the interest. If the grade is low banks will not be volunteer to give credits to these firms. Since such kind of credit required much more capital to be hold by the bank.

The aim of IFRS applications is increasing the quality of the information by financial tables. However sometimes using application of high quality standards to get high quality information may not be enough (Ray, 2000).

The aim of this study, compatibility degrees to IFRS and IAS of 500 industrial enterprises and if there is a statistically significant compatibility degree difference among enterprises with and without foreign partners in Turkey were tested. The subject of the study is composed of the 500 industrial enterprises listed by Istanbul Chamber of Industry in 2007. Questionnaries were answered by general managers or vice managers during the study.

MATERIALS AND METHODS

Process of sampling: Full count sampling method was used since there were 12 different activity kinds among the industrial enterpries. A total of 316 questionnarie was subjected to statistical analyzes and the others were discarded due to incomplement or disinformation in filling out of the questionnaries. It was determined that there were 128 and 188 enterprises with and without foreign partners, respectively. All determined data were analyzed by SPSS 13.0 statistical software.

Preliminary study: Prior to preparation of questionnaries and collecting the data, advices and suggestion of famous researches in the subject of accounting and statistics were gotten and to the experiences of representators of international rating agencies were also applied.

Methods and tools for the data collection: Questionnaries were succesfully handled to 500 firm authorities either by hand or via e-mail.

In order to collect financial data reference letters of Istanbul Chamber of Commerce and Chambers of Industry and Commerce of Bursa and Kayseri, Industry and Commerce City Directorates, Ataturk University Institue of Social Science were used. At the last stage of the study, an agreement was made by a commercial survey company in order to present results much more effectively then the collected data with the confirmation of the authorities from the enterprises were subject to analyes. The questionnarie was contained 2 sections; the first section included the questions about the descriptive information of surveyed enterprises and the second part was about the compatibility degree to IFRS and IAS of the enterprises. Reliability tests of the questionnaries were done and the results were found highly trustable with an alpha value of 0.8122.

In order to analyze the results, arithmetical means, standard deviaitons were used, frequencies and percentages descriptive information was determined, finally compatibility differences based on having foreign partners or not were analyzed.

Hypotheses of the study: Research hypoteses were decided as followed considering the purpose and model of the study.

H₁: There are significant differences between enterprises with and without foreign partners with respect to compatibility to IFRS 2a.

H₂: There are significant differences between enterprises with and without foreign partners with respect to compatibility to IFRS 2b.

H₃: There are significant differences between enterprises with and without foreign partners with respect to compatibility to IFRS 3.

H₄: There are significant differences between enterprises with and without foreign partners with respect to compatibility to IFRS 5.

H₅: There are significant differences between enterprises with and without foreign partners with respect to compatibility to IFRS 7.

H₆: There are significant differences between enterprises with and without foreign partners with respect to compatibility to IFRS 8.

H₇: There are significant differences between enterprises with and without foreign partners with respect to compatibility to IAS 1a.

H₈: There are significant differences between enterprises with and without foreign partners with respect to compatibility to IAS 2a.

H₉: There are significant differences between enterprises with and without foreign partners with respect to compatibility to IAS 7.

H₁₀: There are significant differences between enterprises with and without foreign partners with respect to compatibility to IAS 11.

RESULTS AND DISCUSSION

Demograpical information of research sample: Regions, activity branch, number of worker, sector, type of enterprise, exporting capacity, state of foreign partnership and state of using international finance from industrial enterprises answered the inquiries were shown in Table 1. It was determined that 128 (40.5%) of the surveyed enterprises had foreign partner and 188 (59.5%) of them did not.

Analysis of enterprises compatibility levels to IFRS and IAS: As shown in Table 2, minimum arithmetic mean showing compatibility level of industrial enterprises to IFRS and IAS was found as 2.28 and maximum arithmetic mean was 4.30. Evaluation of compatibility levels by using arithmetic means and standard deviations are as:

Table 1:	Demograpical information of surveyed industrial enterprises

Table 2:	Arithmetic means and standard deviations of adoptation levels of industrial enterprises to IFRS and IAS
*1:Worst 5: Best; IFRS: International Financial Reporting Standard; IAS: International Accounting Standard

Table 3:	The results of t-test

According to this evaluation adoptation levels of industrial enterprises considering intensiveness: at fair level (22 standard), at partly good level (6 standard), at slightly bad level (2 standard).

Determination of compatibility level differences between enterprises with or without foreign partners: The data were subject to t-test in order to determine if there is a statistically significant difference between compatibility degree of enterprises with and without foreign partners to IFRS and IAS. Aritchmetical means, standard deviations and t values from the statistical analyzes are shown in Table 3.

In this case; H₃, H₄, H₆, H₇, H₈, H₉ and H₁₀, hypotheses were accepted. With respect to compatibility abilities to IFRS and IAS mentioned hypotheses, there were significant (p<0.05) differences between the enterprises with and without foreign partners.

H₁, H₂, ve H₅ hypotheses were rejected means that there were no significant differences between enterprises with and without foreign partners with respect to the IFRS and IAS content of these hypotheses.

CONCLUSION

Following results were determined from the present study that aimed to determine the adoptation levels of 500 industrial firms chosen by Istanbul Chamber of Industry as for the year of 2007 to IFRS and IAS. Adoptation level of industrial enterprises to IAS and IFRS based on density were at fair level, good level and at bad level took a small part.

Among the industrial the firms succesfully involved the survey and had foreign partners were significantly different at 70% rate than the ones without foreingn partners with respect to adoptation level.

RECOMMENDATIONS

Considering the findings of the present study, the following suggestions can be made: In order to improve the adoptation level of firms, individuals employed in accounting must be trained for international accounting standards. Firms must be tried to benefit from experienced enterprises with foreign partner that differ significantly from themselves.

Accounting standards subjects must be included in accounting education curricilum in undergraduate, graduate levels. Another problem solving way would be the more focusing and guidance on the IFRS and IAS applications by academical staff. Thus the relationships and ties must be strenghtened between the firms and the industrial institutes with consultancy.