Government incentives in accounting standard sets and accounting system application general communiques: Accounting and presentation

The efforts of various institutions in Turkey in the field of accounting and reporting have led to the emergence of a pluralistic accounting system, causing companies to prepare their financial statements in accordance with different accounting systems, such as the General Communique on Application of Accounting System (GCASAS). The Accounting System Application General Communiques (GCASAS), implemented in 1992 with a primary focus on tax concerns, and the new Turkish Commercial Code (TCC) introduced in 2012, have served as guiding principles for accounting standards in the preparation of financial statements. In today's context, businesses subject to accounting standards are required to prepare a set of financial statements that comply with both the GCASAS from a tax law perspective and accounting standards according to the TCC. Governments provide incentives to businesses for various reasons, including resource allocation, personnel support, and technical knowledge assistance. Our study focuses on how these incentives are accounted for and reported in line with accounting standards and GCASAS. We aim to outline the differences between the mentioned practices and evaluate their impacts on financial statements. In our study, firstly, definitions and explanations related to state incentives within the scope of accounting legislation, accounting standards, and General Communiques on Accounting System Application (MSUGT) will be examined. Subsequently, the classification of incentives and a comprehensive explanation of the incentives applied in our country will be provided. In the final section, the accounting treatment of state incentives in accounting legislation and their presentation in financial statements have been outlined.