NEWSLETTER-2020-metin

81 CAPITAL MARKETS LAW situations pertaining to the entire five accounting period, or in each of such periods, to the Board within 20 business days following the announcement of the financials of the fifth accounting period to the public. The Board will then evaluate the respective reasonings. During such evaluation, the Board will consider the unfavourable cases that may have affected the economy, sector or the company, and which are not under the control of the shareholders’ management. The approach of the Board concerning the financial difficulties that the companies are in due to the recent economic events, will be important for the application of such rule. Initiation of the Time Period The respective five consequtive years will be counted as of the first accounting year staring from the subsequent year, in which the company has been publicly withheld. For the companies that were publicly withheld at the time where the Capital Markets Law has en- tered into force the Provisional Article 1 ( Transmission Period ) of the Communiqué will be applied. Accordingly, the respective five con- sequtive years will initiate from (i) the accounting year ending on 31 December 2013 for those publicly withheld companies with their their fiscal year the same as the calendar year; or (ii) the special accounting year ending in 2014, for public companies with special accounting years. Financial Statements Pursuant to Article 5 ( Priciples for the Financial Statements ) of the Communiqué, if the company is subject to an independent audit, then the financial statements to be taken into account while determin- ing the losses should be the financial statements that are announced to the public, and which have been audited. In respect of the public companies that are required to prepare consolidated financial state- ments, then those consolidated financial should be taken into account. Otherwise, i.e. for the companies that are not obliged to prepare con- solidated financial statements, solo financial statements will be evalu- ated. It is further clarified that the loss for the financial year under the consolidated statements refers to the “loss by the parent” or, on the