Accounting of incentives provided for foreign trade transactions in Turkey within the framework of Turkish accounting standards

The purpose of this study is to determine how incentives provided to exporting businesses in Turkey will be accounted for in accordance with the Turkish Accounting Standards (TMS 20) and how they will be reported in the financial statements. Transferring incentives to accounting records in an accurate and transparent manner ensures that financial statements reflect the truth. In this context, how incentives provided for exporting activities will be recorded has been discussed with examples on capital and income items and comparative evaluations have been made in the light of this data. Export-oriented supports in our country were implemented within the framework of a decree dated 1995 and circulars of the Ministry of Economy until 2022. However, with the Presidential Decree issued on August 18, 2022, the "Decree No. 5973 on Export Supports" came into force. This decree was analyzed comprehensively and updates were made to the numerical values of these supports as of 2024. In the first part of our study, the basic concepts of foreign trade transactions were examined from a broad perspective. Export and import processes, documents to be used in these processes, delivery and payment methods were analyzed in a comprehensive manner. In the second part, the concepts of incentives and the subject of incentives in exports were discussed; the purposes and characteristics of the incentives provided or being provided by the state and the types of incentives offered to businesses for export in Turkey were explained in detail. In addition, the TMS 20 Accounting Standard for State Incentives was defined; the purpose, scope and basic concepts of this standard and the capital and income approaches were emphasized. In the third part of our study, the accounting of export incentives and aids for businesses according to the income and capital approaches within the framework of TMS 20; how this process is carried out was discussed with practical examples.