Preparation of balance sheets, initially prepared based on uniform accounting system, according to BOBI FRS transitional provisions: An application

The rapid development of the globalization phenomenon in recent years has become important for financial investors in terms of creating a common financial satatement language. Therefose, public enterprises in Turkey adopt the International Financial Reporting Standards (IFRS) However, it has been deemed necessary to create a new standard because non-public commercial businesses do not apply IFRS and the existing accounting system (MSUGT) is incomprehensible internationally. Therefore, Turkish accounting practices and financial statements prepared in accordance with them have been tried ta be made more understandable internationally via the Financial Reporting Standartd for Large and Medium Enterprises (BOBI FRS) published by KGK in 2017. Hence, as of the end os 2018, a provision about the requirement to prepared financial statements according to the BOBI FRS introduced for businesses that are large enough to be subject to interpendent audit but do not apply IFRS. Conversion of financial statements prepared in accordance with MSUGT to BOBI FRS has come to the agenda for businesses that are obliged to prepare financial statements according to both MSUGT and BOBI FRS. Businesses should use the guidance of transitional provisions in part 27 of the standard when converting their financial statements. The aim of this study is to assist the businesses that will implement transformation by drawing attention to the differences in accounting practices between the two standards. Accordingly, in the part of the study, MSUGT and BOBI FRS are tried to be explained by comparing them in terms of conceptual framework. In the second part, explanation about the recognition of items of account that subject to the conversion in both standards are made. In the last part, the balance sheet prepared by a sample enterprise according to the Uniform Account Plan (TDHP) bring in compliance with BOBI FRS. Since it is aimed to give detailed and in-depth information, the case study method was taken as the method in the study. As a result, it has been determined that deferred tax assets and deferred tax liabilities play an important role in the process of converting financial statements in accordance with the BOBI FRS due to the difference in the conceptual framework, accounting policies, measurement principles and accorting rules. Key Words: IFRS, MSUGT, BOBİ FRS, TDHP, Conversion of Financial Statements.