The deferred tax applications and deferred taxes in financial statments according to international accounting standards

At this study, we tried to explain deferred taxes practice and observe the present time situation in our country. We gave information about the practice and figured out how important in the financial analysis. The topic of ?deferred tax? is a new and complex subject, given the previous accounting standards in Turkey. In a research made among the European Union members, International Accounting Standard No.12 ? the standard dealing with deferred taxes ? has been named as the hardest standard for accounting staff to adapt. In order to describe deferred taxes correctly, firstly we gave the definition of pre-tax profit that ise presented in financial statements calculated to the accounting system and taxable profit calculated as per the tax legislation. And then we defined temporary and permanent differences. Permanent differences originate from the differences in the calculations of accounting profit and taxable profit due to tax legislation in force, and will not be removed in other periods. Non-allowable charges or non-taxable incomes are examples of permanent differences. Temproray differeneces arise when there is diffrences between the occure time of incomes and expenses and their recognition time as per the tax legislation. Evaluating operational and financial profits in accounting applications in Turkey, permanent differences which are caused by tax exempted revenues and expenses are taken into cosideration while the tax effects of temporary differences are ignored as a resuult of seasonality. This aim of this paper is to analyse the elations between accounting rules and tax rules in Turkey and also harmonization to explain of International Accounting Standards (UFRS).