Comparison of TMS 19 and IFRS in Directing Foreign Direct Investment to Employment

Abstract

This study aims to examine TAS 19 and the International Financial Reporting System (IFRS) systems in order to direct foreign investment to employment. In this research, firstly, general information on related concepts was given, and then, in order to encourage foreign investment, TAS 19 and the IFRS system are compared in general. According to the results of the study, there is not enough incentive and ease in directing foreign investors to both the IAS 19 and UFDRS systems. When these two systems are compared with each other, it has been observed that TAS 19 is more effective in terms of employment oriented applications and directing foreign direct investment to employment, and responds more effectively than the IFRS system in many areas, especially from employee rights to investor's legal rights and regulations. TAS 19 is important for directing domestic investments to employment, and IFRS is important for bringing foreign direct investment to the country. It can be stated that the revision of TAS 19 to allow the free movement of capital in the international arena, similar to the IFRS system, will have positive contributions to the economy by increasing both field practices and increasing employment.