National Accounting Standards in Turkey

This study describes the accounting standards being implemented in Turkey. Uniform Accounting System and Uniform Chart of Accounts, Turkish Financial Reporting Standards (TFRS), and Financial Reporting Standards for Large- and Medium-Sized Enterprises (FRS for LMEs) are simultaneously applied in Turkey. TFRS are a direct translation of the International Financial Reporting Standards (IFRS). Enterprises that are subject to independent audit apply TFRS. FRS for LMEs is a financial reporting framework that is subject to independent audit and is valid for financial statements presented to general assemblies of enterprises that do not apply the TFRS. Enterprises that are not subject to independent audit apply Uniform Accounting System. Uniform Chart of Accounts is used by all these businesses. Despite these new practices, a revision has not been carried out in Uniform Chart of Accounts. Because of these applications, it is necessary to define the new accounts needed and to review Uniform Chart of Accounts. Banks, insurance and pension companies, finance companies, financial leasing and factoring companies, and asset management companies are required to use a different account plan despite the application of TFRS.