Assessment of trade receivables&payables in businesses within the framework of tax procedure law and Turkish Accounting Standards/Turkish Financial Reporting Standards and an application

Nowadays, significant enhancing of transaction volumes of businesses in rapidly developing market conditions increases the impact and importance of trade receivables and payables on financial statements. The probability of uncollectibility or delinquency of trade receivables and trade payables makes the assessment process of these important as well. Which it affects every aspect of life, the rapid impact of globalization on commercial life has brought with it the need for a common financial reporting language that businesses can use to participate in and adapt to global activities. This case has been the main factor ensuring the formation and development of International Accounting Standards. Turkish Accounting Standards, which are an adaptation of the International Accounting Standards, have determined different measures relative to the Tax Procedure Law for the assessment of financial instruments. There is a difference in practice between the Tax Procedure Law and Turkish Accounting Standards / Turkish Financial Reporting Standards in the assessment of trade receivables and payables, which be part of the scope of financial instruments. The reason for this difference is that the tax base is aimed to be calculated correctly in the regulations of the Tax Procedure Law regarding the assessment process while the main purpose of the regulations of the Turkish Accounting Standards / Turkish Financial Reporting Standards regarding the said process is not the calculation of the tax base correctly but it is aimed to be representing of financial positions genuinely in the financial statements of businesses. Assessment of trade receivables and payables of the businesses in accordance with Tax Procedure Law is important for the correct calculation of tax base as it directly affects tax base. If the conditions in the Tax Procedure Law are met by businesses regarding assessment of trade receivables and payables and the assessment process is done correctly, the opportunity to reduce the tax burden of businesses increases the importance of assessment, which is topic. Likewise, considering that trade receivables and payables included in the financial statements of the enterprises significantly affect the decisions of the financial statement users, assessment of these in accordance with the Turkish Accounting Standards / Turkish Financial Reporting Standards is also of great importance. In our study, the assessment process of trade receivables and payables of businesses has been discussed separately within the scope of the Tax Procedure Law and Turkish Accounting Standards / Turkish Financial Reporting Standards, application differences are mentioned, tax-related consequences of these are presented and some explanations are given. Additionally it has been stated that, international assessment standards can be achieved with the legal arrangements to be made in the Tax Procedure Law in order to minimize the differences in assessment of trade receivable and payables and to comply with international standards.