Corporate Accounting Rating and Its Practice in Publicly -Held Companies

Abstract

Corporate Governance and its rating in publicly held companies has become a subject matter of both competition and prestige. Since the regulations introduced in the Turkish Commercial Code, have been prepared with the philosophy of the corporatization of all the firms, Corporate Governance shall become one of the most significant issues of the recent years. The capability of the implementation of corporate governance by the firms depend on the institutionalization of the accounting system. The object of this review is to enable Corporate Accounting Rating and to provide guiding suggestions to those companies who wish to achieve high grades in Corporate Accounting Rating regarding the accounting systems. The institutionalization of the accounting system required the following actions:  The organization of the accounting systems of the firms should be realized in an effective manner,  An accounting manual should be prepared and released in the form of a book,  Ethical codes should be developed and should be applied on the decision making processes of the companies,  The policies concerning knowledge explanation should be prepared in a manner that enables access to accurate and reliable information,  The information technologies should be designed in an updated manner that will facilitate access to internet sites and to the available knowledge.  Committees should be established not only for compulsory auditing, but also for internal audit processes.