ERDEM-NEWSLETTER-2018-metin

210 NEWSLETTER 2018 law to be prepared on a periodic basis, such as financial statements, annual reports of the board of directors, as well as independent audit reports. Since the respective reports are prepared periodically, the dis- closure will be periodic. On the other hand, the public disclosure on material events would be performed once the events and transactions that are defined under the legislation occur. Public disclosure on mate- rial events is referred to as such due to the fact that the timing of the occurrence of the material events is undeterminable under the legisla- tion. The disclosure of material events would have the effect to change the impact of the perception of the occurrence as per the information in the continuous public disclosures. Therefore, determination of the material events, and timing of the disclosures, is important. Continuous Public Disclosures As per Article 14 ( Financial Reporting and Independent Audit ) of the Law, the issuer is obliged to prepare and submit financial state- ments and reports to be disclosed to the public, or that which has been requested by the Board as necessary in compliance with the regulations established by the Board in a timely, complete, and accurate manner. Pursuant to the Communiqué on Financial Reporting, financial statements refer to the statement of financial position, comprehensive income statement, cash flow statement, and statement of changes in equity, together with corresponding footnotes. The term of financial reports is further defined as the reports that are comprised of financial statements, board of directors’ reports and responsibility statements. Other than the financial statements, financial reports include the ac- tivity report of the boards of directors. Such reports have the same content of activity reports that are produced in a non-public joint stock company 3 . The content of the activity reports is listed in the Com- muniqué on Financial Reporting, in detail. The respective issuers and the capital markets institutions should take into account the TurkishAccounting Standards/ Turkish Financial Reporting Standards published by the Public Oversight, Accounting 3 Manavgat, Caglar : Publicly Held Companies and Public Offering from Legal Perspective, Research Institution on Banking and Commercial Law, Ankara, 2016 , p. 203.