IAS-18 revenue recognition, its implications and applications in Turkey

All the standards, published within the scope of the International Financial Reporting Standards (IFRS) aim to reflect the financial states of enterprises in both the domestic and the international markets most accurately. Still, some issues are encountered during the transition to the application of these standards and certain changes have occurred in the accounting information as well, during the application of said standards. This study attempts to refer to the types of innovations, brought to the practice by Revenue Standard, while approaching the revenue recognition with case studies that comprise the revenue itself. Furthermore, Revenue Standard and the Turkish Uniform Accounting System (TUAS) are compared and contrasted with a model application. Disparities occur between IFRS applications and the TUAS applications, pursuant to tax legislation in sales of goods, service deliveries, interest, royalties and dividends and as to when the revenue arises and how much is it; complications may be manifested in the application of these as well. At the same time, based on the concepts of periodicity and fair value within the scope of IFRS, differences can be observed between revenue recognition and the TUAS applications, pursuant to tax legislations. Minimizing these disparities between IFRS and TUAS would be both facilitating for the implementers and useful to generate financial tables of higher reliability. Keywords: IAS18, Revenue, IFRS, Uniform Accounting System.