Comparative study of reporting exploration, development and production activities in the mining sector in terms of tax procedures law and Turkish financial reporting standards

Natural underground sources have taken their place as a promoter force in all stages of development from prehistoric times to today. In particular, mines have become a symbol of power by means of all civilizations and states throughout history, with the aim of gaining superiority over other states. In addition to this, the needs of both the living quarters and the era were taken into consideration and processed in this direction in daily life. When looked at the mining-intensive countries on the world map diversity of minerals, Turkey has bonanza, at meanwhile, it has become a pioneer among the few countries in the world in terms of reserves and some elements. Notwithstanding, the mining sector investments, which were made as a state policy in the first years of the Republic, have declined to almost zero level in the 1950s. This situation led to the insufficient disclosure of the existing underground resources in our country. Decreasing investments in the public sector and the lack of necessary incentives for the private sector have caused the mining sector to be economically hampered. In recent years, mining has become a sector which international and domestic investors have made remarkable initiatives besides some incentives in our country, as well as the progress of the mining sector on the path it targets, it is quite obvious that significant investments are required for mining activity. It has been important for the future of the sector to the registry and report these investments in a systematic manner in terms of cost perspective according to national and international tax legislation. In this study, it has been tried to include research, development and production activities that point to different stages in mining sector in terms of Tax Procedure Law and Turkish Tax Legislation and International Financial Reporting and Standards. Legislation and economic data for the sector are presented, as well as examples of how the tax procedure law and international financial reporting standards are subject to review. The differences between the two methodologies were put forward and the purpose was to interpret the differences and to fill in the practical scientific gaps in the costing and financial reporting of the mining sector activities. During the study period, it was noteworthy that the academic and sectoral studies on the study subject were rare. In the study, a mining site related to mining and mining operations; General information on sectoral and tax legislation regarding research - development and production activities is given. In addition, different aspects of the mining sector, such as property structure, depreciation and research-development expenses, have been tried to be analyzed and examples of practices related to Turkish Tax Legislation and International Financial Reporting Standards are included.