**3. Turkish Financial Reporting Standards (TFRS)**

In the POAASA's decision dated 13.09.2018 numbered (03/161), TFRS are redefined. They cover the standards published under the names of TAS, TFRS, TAS Interpretation, and TFRS Interpretation [4].

The financial statements are prepared and presented by their preparers across the globe for their users. There are some differences due to the use of different financial statements by different countries during the creation of national regulations for social, economic, and legal reasons. The efforts of the International Accounting Standards Board (IASB) to form a common language in the process of globalization are in question. IASB aims to reduce the differences by harmonizing the rules and accounting standards and application procedures for the preparation and presentation of financial statements.

As the common language used by businesses in terms of financial reporting, IFRS are the standard set which directs financial reporting in the world and are formed by the IASB that is the authority for financial reporting in terms of the level of implementation and adoption by the world. The purpose of the IFRS is to increase international investments and trade through a comparable, reliable, understandable, and transparent presentation of financial statements. TAS/ TFRS and TAS/TFRS Interpretations are literal translations into the International Accounting Standards/International Financial Reporting Standards/ International Financial Reporting Interpretation Committee (IAS/IFRS/IFRIC) as issued by the IASB.

A set of financial statements prepared under the TFRS [5] are as follows:


TFRS are prepared to meet the needs of the users of the securities and their financial statements.

The accounting records of companies of the specified nature and scale determined by the decision of the Council of Ministers which was formed around the decision of the POAASA following 01.01.2013 continue to be done in accordance with Tax Procedure Law with compatibility to TFRS [6].

The publication of TAS/TFRS does not mean that Uniform Accounting System has completed its function, but rather increases its importance in order to ensure their healthy implementation, comparability, and reliability [7].

With the application of TAS/TFRS, there are some changes in the format and classification of the financial statements in the Uniform Accounting System which have been compulsory since 1994, and the formal structure is changing. The importance of information is emphasized in the standards, and it is required to present important information in a truthful manner. TAS/TFRS also made significant changes in the valuation of balance sheet items and income statement items. These changes in measurement and valuation significantly affect the reported amounts of items in financial statements [8].

**17**

*National Accounting Standards in Turkey DOI: http://dx.doi.org/10.5772/intechopen.84364*

Borsa Istanbul, joint stock companies.

Each business determines its own chart of accounts.

from IFRS that will be used by nonpublic entities [9].

enterprises in question.

**Enterprises (FRS for LMEs)**

tion is detailed below [4]:

In the POAASA's decision dated 13.09.2018 and numbered (03/161), TAS are redefined. TAS cover TFRS mentioned above and FRS for LMEs and other standards determined by the agency. TAS of the decision for determining the scope of applica-

• Institutions that require TFRS to be used in the preparation of their individual and consolidated financial statements: (A)—(i) Joint stock companies traded on the stock exchange; (ii) Investment institutions; (iii) Collective investment institutions; (iv) Portfolio management organizations; (v) Mortgage financing institutions; (vi) Housing finance and asset financing funds; (vii) Asset leasing companies; (viii) Central clearing houses; (ix) Central lending organizations; (x) Data storage organizations; and (xi) Capital market instruments that are not traded on the stock exchange, but which provide at least two of the three criteria from publicly traded companies in the capital market: (a) Total of 15 million and more Turkish Lira; (b) Annual net sales revenue of 20 million and more Turkish Liras; (c) Number of employees 50 and above. (B)—Businesses subject to the regulation and supervision of the BRSA in accordance with Banking Law—(i) Banks; (ii) Financial leasing companies; (iii) Factoring companies; (iv) Financing companies; (v) Asset management companies; (vi) Rating agencies; (vii) Financial holding companies; (viii) Companies holding financial holding companies; and (ix) Payment agencies. (C)—Insurance, reinsurance, and pension companies. (D)—Corporations, which are allowed to operate in

• Subject to independent audit and the implementation of FRS for LMEs in the preparation of individual and consolidated financial statements of institutions, establishments, and enterprises other than the above; however, it will be able to implement the TFRS upon request of the institutions, organizations, and

TFRS is the basis of the policy. It does not give businesses the chance to use the account name according to their needs. In the principle-based approach, only the account framework is determined, and the chart of accounts is not compulsory.

IFRS is divided into two as IFRS full set and SME sets in the world and in Turkey, although TFRS for SMEs that was in line with IFRS for SMEs was published in 2010 in the official gazette, but there has been no chance to implement it. Later, FRS for LMEs was issued by POAASA instead of the TFRS for SMEs. FRS for LMEs, entered into force on the date of publication, to be applied in the accounting periods beginning on or after 01.01.2018. It consists of 27 chapters and sets out the accounting principles for

The purpose of the IASB is to prepare a separate standard for SMEs as a set of accounting principles derived from IFRS, which will be used by small, simplified entities whose stocks are not listed on the stock exchange. IASB has defined IFRS for SMEs as a set of simple and simplified Financial Reporting Standards derived

FRS for LMEs was issued by replacing TFRS for SMEs with certain additions. This standard includes interest costs, fair value application, receivables and asset

**4. Financial Reporting Standards for Large- and Medium-Sized** 

all accounting transactions that the companies may encounter in general.

### *National Accounting Standards in Turkey DOI: http://dx.doi.org/10.5772/intechopen.84364*

*Accounting and Finance - New Perspectives on Banking, Financial Statements and Reporting*

In the POAASA's decision dated 13.09.2018 numbered (03/161), TFRS are redefined. They cover the standards published under the names of TAS, TFRS, TAS

The financial statements are prepared and presented by their preparers across the globe for their users. There are some differences due to the use of different financial statements by different countries during the creation of national regulations for social, economic, and legal reasons. The efforts of the International Accounting Standards Board (IASB) to form a common language in the process of globalization are in question. IASB aims to reduce the differences by harmonizing the rules and accounting standards and application procedures for the preparation

As the common language used by businesses in terms of financial reporting, IFRS are the standard set which directs financial reporting in the world and are formed by the IASB that is the authority for financial reporting in terms of the level of implementation and adoption by the world. The purpose of the IFRS is to increase international investments and trade through a comparable, reliable, understandable, and transparent presentation of financial statements. TAS/ TFRS and TAS/TFRS Interpretations are literal translations into the International

International Financial Reporting Interpretation Committee (IAS/IFRS/IFRIC)

TFRS are prepared to meet the needs of the users of the securities and their

The accounting records of companies of the specified nature and scale determined by the decision of the Council of Ministers which was formed around the decision of the POAASA following 01.01.2013 continue to be done in accordance

The publication of TAS/TFRS does not mean that Uniform Accounting System has completed its function, but rather increases its importance in order to ensure

With the application of TAS/TFRS, there are some changes in the format and classification of the financial statements in the Uniform Accounting System which have been compulsory since 1994, and the formal structure is changing. The importance of information is emphasized in the standards, and it is required to present important information in a truthful manner. TAS/TFRS also made significant changes in the valuation of balance sheet items and income statement items. These changes in measurement and valuation significantly affect the reported amounts of

A set of financial statements prepared under the TFRS [5] are as follows:

Accounting Standards/International Financial Reporting Standards/

• Statement of profit or loss and other comprehensive incomes.

**3. Turkish Financial Reporting Standards (TFRS)**

Interpretation, and TFRS Interpretation [4].

and presentation of financial statements.

• Statement of financial position.

• Statement of changes in equity.

• Financial statements are composed of footnotes.

with Tax Procedure Law with compatibility to TFRS [6].

their healthy implementation, comparability, and reliability [7].

• Statement of cash flows.

items in financial statements [8].

as issued by the IASB.

financial statements.

**16**

In the POAASA's decision dated 13.09.2018 and numbered (03/161), TAS are redefined. TAS cover TFRS mentioned above and FRS for LMEs and other standards determined by the agency. TAS of the decision for determining the scope of application is detailed below [4]:


TFRS is the basis of the policy. It does not give businesses the chance to use the account name according to their needs. In the principle-based approach, only the account framework is determined, and the chart of accounts is not compulsory. Each business determines its own chart of accounts.
