Accounting and reporting for leasing transactions: Comparasion of legal regulations in Turkey

Financial leasing, which is an alternative financing method apart from owning the assets that businesses need to continue their activities, is a lease method where the ownership and usage rights remain with the lessor, but all risks and returns arising from ownership are the lessee. Due to the fact that financial leasing has become very widespread at the international level in recent years, it has required legal regulations on leasing. Along with each country has its own regulations, assemblies that make international regulations have also developed some international standards in order to create a common language and accurate, reliable and comparable financial statements in the field of accounting and reporting. Among these standards, there are also standards related to leasing transactions. This study aims to reveal the similarities and differences between the tax regulations related to financial leasing in Turkey and the TFRS 16, BOBİ FRS 15, FFMS 32 standards applied in Turkey through a sample financial leasing contract. As a result of the study, it has been understood that the compliance of the regulations applied in Turkey has not been achieved and the current accounting chart of accounts has not yet been published within the framework of the regulations implemented by the regulatory boards. Therefore it has been understood that there are confusions and hesitations in the accounting and reporting stages of the companies. It has been concluded that the application will be unified and the hesitations will be eliminated with the relevant updates.