Presentaion of financial statements in TFRS for SMEs and a case study in a business organization

Small and medium-sized Enterprises (SMEs) constitute the 95% of economies in the world including Turkey. It has become mandatory that SMEs which have the largest share in business world must have their own specific structures. One of the most important structures is financial reporting. The increasing prevalence of Financial Reporting Standards has led to the following question: How can these standards be applied to SMEs? In order to address this issue, IASB (International Accounting Standards Board) published IFRS (Internatioanal Financial Reporting Standards) for SMEs. IFRSs for SMEs consisting of 239 pages were prepared to consider the capacities and needs of small enterprises. Assets, liabilities, income and expenditure measure guidelines and principles exsisting in full set of IFRSs were simplified, sections which are not directly related to SMEs discarded and mandatory descriptions were also reduced. In order to further reduce the reporting burden of SMEs, it was agreed to review IFRSs for SMEs every three years rather than annually or within closer intervals.During the process of harmonization with Europan Union (EU), legal arrangements in Turkey, which are competible with international accounting standards have been more developed. In order to put an end to multi-headed application of accounting and financial reporting in Turkey and to create and publish national accounting standards, Turkey Accounting Standards Board (TASB) was established. In this study; the differences between national accounting systems used in various countries around the world will be resolved and advantages of TFRSs for SMEs will be explored. Concepts and principles concerning presentation standards in Turkish Financial Reporting Standards (TFRS) for SMEs will be explained. Issues related to financial statements and their presentation will be mentioned and finally an application made in a business organization will be illustrated.Keywords: Small and Medium Enterprises (SMEs), Internatioanal Financial Reporting Standards (IFRS), Turkish Financial Reporting Standards (TFRS) for SMEs, Presentation Standards.