A comparison of TMS 12 income taxes standard and BOBI FRS 23 taxes on income standard: The case of a listed company in Istanbul Stock exchange

It is important that the financial reports presented by businesses about their activities and financial situations are understandable by those concerned. With globalization, those interested in the fields of activity and/or activities of businesses have gone beyond country borders, and therefore the importance of the reports they present being understandable all over the world has increased. As a result of the need to create a common language regarding the financial reports presented, International Accounting Standards were born and organizations were established to ensure the use of these standards all over the world. There are differences between accounting standards and current tax laws in our country. Laws consider the financial reports prepared by businesses as tax centers; Accounting standards, on the other hand, aim to present the financial situation of businesses in a more realistic way. In the study, the articles of BOBİ FRS 23 Taxes on Income standard and TMS 12 Income Taxes standard were compared and it was concluded that there is no significant difference between these two standards except for the determination of business sizes. Apart from this difference, the two standards generally overlap with each other.In addition, in the application part of our study, the events that create the differences are included by comparing the tables prepared according to the tax laws of a company traded in Borsa Istanbul with the tables prepared by reviewing them according to the standards. As a result of the study, it was concluded that financial statements prepared according to standards reflect reality better. For this reason, it is thought that more emphasis should be placed on compliance with standards in our country. Standards serve to provide more realistic information about the financial structure of businesses.