The determiniation of the measurement (valuation) differences in Turkish Accounting Standarts and Taxation Laws and reporting to tax administration

The globalization throughout the world has accompanied the developments towards the application to a common financial reporting for standards enabling the financial information of the enterprises to be comparable. In many countries, financial reporting standards published by ?International Accounting Standards Board (IASB)? have either been implemented or been adopted in order to be implemented. These standards have been published as ?Turkish Accounting Standards? by being translated into Turkish and have entered into force. Turkish Accounting Standards have begun to be implemented by enterprises subject to independent auditing and gradually, they will be able to be implemented in other enterprises.Turkish Accounting Standards bring about important changes into accounting and financial reporting systems that have been implemented up to today. These changes also affect the calculation of the profit (financial profit) calculated according to the Turkish Taxation System and reported to the tax administration. Hence, the enterprises obliged to issue their financial statements according to Turkish Accounting Standards will have to declare the differences that develop while they reach the taxable income from book income they have reported in their financial statements hereinafter, and report them to Turkish Tax Administration as well.The aim of this study is to assess the measurement (valuation) methods creating difference between book income being reported according to Turkish Accounting Standards and taxable income calculated according to Turkish taxation system, and the differences according to the measurement methods as well as introducing how the differences detected with reference to both procedures can be reported to the Turkish Taxation Administration. Reviews carried out within this context present the necessity to make some amendments in both taxation laws and other legal basis issuing accounting practices of enterprises. The study also includes the necessity for the additional reporting to current notification and declaration regarding the calculation of taxable profit from book profit and reporting sample to provide this reporting.Key Words : Financial Reporting, International Accounting Standards, Turkish Accounting Standards, Measurement, Valuation, Measurement Methods, The Transition from Book Profit to Taxable Profit, Taxation System, Income Taxation Standard, Deferred Taxation, Temporary Difference.