Comparison of Tangible Fixed Assets Within the Scope of FRS for LMSE and TPL

Abstract

In order to establish a common language and reporting system in accounting, financial reporting standards have been developed and it has been predicted that enterprises in our country, which are subject to independent audit, implement the Turkey Financial Reporting Standards (TFRS) as of 2013. In 2014, the scope of independent auditing was separated from the scope of TFRS and to be implemented in 2018, Financial Reporting Standard for Large and Medium Sized Enterprises (FRS for LMSE) was published for businesses that are subject to independent audit but do not apply TFRS. The existence of different provisions regarding the same events in FRS for LMSE and the Tax Procedure Law (TPL) causes different results arising from the same event. Different applications for tangible fixed assets, which have a high degree of impact on the financial statements, especially because they have a significant share in the financial statements, directly affect the period results of the enterprises. Compared to the TPL the financial statements prepared according to the FRS for LMSE increase the quality of financial reporting, while providing realistic and relevant, comparable and verifiable information. Therefore, expanding the scope of FRS for LMSE is important for access to useful financial information.