Comparing of inventories in Tax Procedure Law and Turkish Accounting Standard-2: An application on automotive supplier industry

Through globalization, enterprises have increased their trade activities in international areas. This situation necessitate a common reporting language and an uniform chart accounting system for financial tables which enterprises have to prepare. For being able to do this, International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) have been formed, also Turkish Accounting Standards (TMS) compatible with these standards have been issued in Turkey. Under favour of these standards, financial information users not only have gained truthful information, but also have been a chance to compare financial tables. TMS-2 standard has been formed regarding inventories. Demonstrating inventories with less or more value from their actual value in balance sheet will effect profit or loss for the period, also misguide financial information users. Thus, providing actual and truthful information related to inventories to the users becomes more of an issue. In this study, inventories have been investigated in depth in terms of Tax Procedure Law and TMS-2 provisions, and also determined application differences. Besides, the financial tables and accounting entries of an enterprise that operates in automotive supplier industry of Aegean Region have been analyzed with regards to inventory items and revealed application differences.