The problems related to the harmonization of financial information reporting of the industrial enterprises in Turkey with European Union`s implementations and a proposal of solution

11 ABSTRACT The most recent regulation concerning financial reporting made by the European Union is about; application of International Accounting Standards in preparing consolidated financial statements from the year 2005. This regulation has a special concern for Turkey from the very reason of being in full membership process and in this respect the sensitivity of harmonisation in all aspects. In this study, it is aimed to determine the problems related to the harmonisation of financial information reporting about the industrial enterprises in Turkey with International Accounting Standards and to present a proposal of solution related to the cited harmonisation. For this purpose, in the first section, general information related to financial statements is being given and explanations about recognition of International Accounting Standards in global respect are made. In the second section, regulations about accounting has been made by the European Union are explained. In the third section, it is aimed to determine similarities and differences between accounting applications about industrial enterprises in Turkey and International Accounting Standards. After determining the differences, it is being aimed to present proposal of solution for harmonisation.