COMPARISON OF REAL ESTATE IN TERMS OF TAS-TFRS AND GCAAS

Abstract

In Turkey, especially in the 2000s; At the international level, important steps have been taken in terms of compliance with the standards, which were founded in the 1970s and accepted by the majority of the countries in the world in the 2000s, and which are generally called "International Accounting Standards (IAS)" and "International Financial Reporting Standards (IFRS)". The “New Turkish Commercial Code No. 6102” enacted in 2011 made it a legal obligation to translate “International Standards” into Turkish, and to accept “Turkish Accounting Standards (TAS)” and “Turkish Financial Reporting Standards (TFRS)”. In this context, it is seen that our country follows and accepts the changes and developments in these standards in coordination with the whole world. As a result, there have been some changes and developments in the valuation and recognition of real estates and their presentation in the financial statements. In our country, as of 2022, accounting records are made and financial statements are prepared using the "Uniform Chart of Accounts (THP)", which was created on the basis of the "General Communiqués on the Application of Accounting System (GCAAS)", which was adopted in 1992 and entered into force since the beginning of 1994. In terms of GCAAS, real estates held for trading are followed in the Inventories group, and other real estates are followed in the Tangible Fixed Assets account group without any discrimination. TAS-TFRSs are; Similar to GCAAS, it has brought some differences in valuation of real estates used by the business and real estates acquired for different purposes, making accounting records and reflecting them in the financial statements. In this study, it is aimed to compare the new situations in accounting and financial reporting with GCAAS and to reveal the differences by examining the differences. Since there is no account separation for the accounting recording of these differences in THP, accounting and financial reporting in accordance with TAS-TFRS are tried to be made through auxiliary accounts. However, this situation is insufficient to meet the need. In order to eliminate this inadequacy, “The Draft Chart of Accounts (FRS Chart of Accounts) in accordance with Financial Reporting Standards” was submitted to the opinion of the relevant parties by the “Public Oversight Accounting and Auditing Standards Authority (POA)” in 2019. This chart of accounts is expected to enter into force by 2023. With the entry into force of this plan, accounting and financial reporting in accordance with TAS-TFRS will be done more effectively. In this study, comparative examples with the "GCAAS Uniform Chart of Accounts" are given, taking into account the "FRS Chart of Accounts Draft".