A study on accounting order and costs in construction companies, financial analysis on BIST registered companies operating in the field of construction

The construction sector, which is urbanized due to population growth and migration from villages to cities, develops and grows within the framework of investment and support programs in the sector. However, as a result of the global crises that became widespread in the last days of the pandemic, increasing production costs and sudden exchange rate increases and increasing inflation in internal dynamics, many fires and price increases occurred. Activities in the sectors most affected by price increases in the construction industry. Price increases in the construction industry, the reasons for price increases, and the products and sectors that are ultimately affected by price increases are important. Accounting for financial transactions in the construction sector, which is one of the sectors that plays an important role in the country's economy, is an important issue. Recently, large-scale and costly construction, contracting, construction and repair projects such as dams, highways and bridges, which are spread over many years, have increased. Since the completion of such construction works often takes years; It is a problem when the revenue generated from the construction work and the costs incurred on behalf of this construction work will be recorded and included in the financial statements. In order to solve this problem, practices and methods within the scope of standards and legal regulations are explained. The aim of the study is to examine the financial transactions of construction, construction and repair works over the years within the scope of the Tax Procedure Law, TMS 11 Construction Contracts Standard and TFRS 15 Revenue from Customer Contracts Standard. It also aims to examine the financial statements of some companies operating in the construction sector registered in BIST and compare their results. In this context, conceptual information was discussed in the first part of the study, and the differences in the recognition of revenues and costs of construction works in the financial statements in terms of both the Tax Procedure Law (VUK) and TMS/TFRS were mentioned by giving examples. In the study, TMS 11 Construction Contracts Standard and TFRS 15 Revenue from Customer Contracts Standard were explained and these two standards were compared. In the application part of the last part of the study, the financial statements of a company operating in the construction sector registered in BIST were examined based on the last five years and compared with the sector rates and an inference was made about the financial balance of the business according to the results obtained.