Borrowing costs

Globalization has directed countries towards to speak the same language their financial statements to be compared, assessed and reported in equal criteria, trading inter countries. There are lots of significant works on common evaluating system of financial raportings which are produced in different countries and developing accaunting applications which are applicable within an international systems.Having started effectively and widely applying Accounting Standards of Turkey harmonious with International Accounting Standards is crucially important in aspects of adaptation to European Union for Turkey. As a result of Accepting the International Accounting Standards and The International Financial Reporting Standards together with Turkish Commercial Law number 6102 as Turkish Accounting Standards and Turkish Financial Reporting Standards, valuation (rating) which was a dictum regulated just with tax only has been removed.Türkiye Financial /Accounting Reporting Standards(TFRS) are also generated based upon International Accounting Standards(IAS). Financial tables which are constittuted according to desicions of Tax Procedure Law, will be constituted based upon Türkiye Accounting Standards (TMS) with the new Turkish Commercial Code (TTK) which will be coming into effect in 2012. Having done concrete specifications about this topic in the standard, more credible and unified financial statements can be submitted.In this study, the subject of Borrowing Costs Standart no.23, which is one of Turkısh (International) Accounting Standarts put into action in 2000?s, its place in the Turkısh Tax Laws and Capital Market Board and its accounting has been taken into consideration. Two methods used in accounting of Borrowing Costs (Bookkeeping as expenses and capitalisation) have been explained with sample applications. Additionally, the position of borrowing costs on financial leasing procedures has been emphasized.