Accounting of the letter of credit within tas and FRS for LMES

Letter of Credit which is one of the most preferable forms at international trade, the importer and exporter are guaranteed. In letter of credit transactions exporters and importers make agreements and sign the contract without knowing each other. "A Sample Procedures and Rules of Practice for Letter of Credits" published by the International Chamber of Commerce regarding the letter of credit regulates the operation of the letter of credit. These rules are recognized by almost all countries around the world and provide significant assurance in international trade transactions. The letter of credit is accepted and regulated by the laws of our country as regulated by the laws of many countries. The letter of credit is essentially a guarantee and contains the necessary forms and conditions for the payment of the price or determination of amount of the goods shipped. All letter of credit transactions, regardless of type, must be made in accordance with the accounting principles and the laws and rules set by international accounting standards. In the first part of this thesis, the first part of the paper has been accredited, the definition and importance of the letter of credit, types of letters of credit, information and documents to be used during the letter of credit, stages of letter of credit, the advantages and disadvantages of the letter of credit are tried to be explained. In the second section of thesis is described International Accounting Standards, Turkey Accounting Standards (TAS) who inspired by International Accounting Standards, Large and Medium Sized Enterprises Financial Reporting Standards (FRS for LMEs) that can not apply the TAS and also the differences between TAS and FRS for LMEs. In the last part of the thesis, the accounting of the letter of credit made under the TAS and FRS for LMEs and also the accounting of the import and export transactions within scope of the letter of credit is explained.