TAS 23 borrowing costs and TAS 2 inventories: The comparison of the standards with the Turkish Tax Procedural Law

In recent years, with the increasing foreign direct investments and capital movements due to globalization, the need for reliable and comparable financial statements has increased. So as to meet this need, IASB formulated and published high quality and reliable International Accounting Standards (IAS/IFRSs). In Turkey, Turkish Accounting Standards Board (TASB) has followed the strategy of setting Turkish Accounting Standards (TAS/TFRSs) fully compliant with IAS/IFRSs.One of the effects of globalization for entities is increasing competition. The entities need new investments such as machines, plants or facilities to overcome this severe competition. The financing of these investments generally done by external resources and this has increased the importance of accounting of borrowing costs. On the other hand, the valuation of inventory has always been one of the important and controversial issues of accounting because overvaluation or undervaluation of inventories influences directly net income and so taxation. Because of this importance of the borrowing costs and inventories in the valuation and taxation process, this study aims to analyze two of the Standards that are published by TASB; TAS 23 Borrowing Costs and TAS 2 Inventories and the differences between their provisions and present tax and accounting applications in Turkey based on Tax Procedural Law (TPL) by following a comparative analysis method.Key words: 1) TAS/TFRS 2) Borrowing Costs 3) Inventories 4) Valuation