Comparison of financial statements arranged according to the Financial Reporting Standard for large and medium sized enterprises (FRS for LMEs), Turkish Financial Reporting Standards (TFRS) and tax method law and an application

In our country, prior to FRS for LMEs, reporting in accordance with TFRS was done by enterprises that were subject to independent auditing, who wanted to implement PIEs (Public Interest Establisments) and TFRS. However, for companies that are subject to independent audit and do not apply TAS (Turkish Accounting Standards)/TFRS (Turkish Financial Reporting Standards), there is a need for a local financial reporting set that is compatible with TFRS. As a result of the studies carried out for this purpose FRS for LMEs entered into force as of 01.01.2018. This standard set has all the features required by acceptable financial reporting without the need for any other standard set related to the preparation of financial statements. The purpose of this study is the comparison of the FRS for LMEs, TAS/TFRS and the General Notification of Accounting System Application/Tax Method Law reporting systems to identify similarities and differences, and to compare the financial statements prepared in accordance with the tax legislation, and to interpret the results obtained according to the FRS for LMEs and TFRS.