Evaluating of borrowing costs in Tax Procedure Law and Turkish Accounting Standard-23

Enterprises not only need to owner's equity for keeping on their activities but also need to liabities from external sources. Borrowing costs are defined as the elements arise from the funds that enterprises owe for providing liabilities. Generally, these elements are the expenses like interest expense, exchange difference, delay interest and commission expense. In our country, the terms and conditions regarding borrowing costs and applications are formed in TMS-23 Standard of Turkish Accounting Standards (TMS). Besides, there are also some terms and conditions regarding borrowing costs in Tax Procedure Law. In this study, borrowing costs have been investigated in depth within the scope of Tax Procedure Law and TMS-23 Borrowing Costs Standard and the comparison of Tax Procedure Law and TMS-23 Borrowing Costs Standard in terms of the application of borrowing costs. In the last part of this study, the borowing costs related the property, plant and equipment of an enterprise that operates in tobocco sector of Aegean Region have been analyzed and the application differences have been compared between Tax Procedure Law and TMS-23 Borrowing Costs Standard. Keywords: Turkish Accounting Standards, Tax Procedure Law, Borrowing Costs