Every company in Türkiye keeps books under the tax laws, but a foreign parent, bank, investor or auditor often wants statements prepared under financial reporting standards. We build the bridge between the two with a regular system.
Why do tax records and financial statements differ?
| Topic | Financial reporting (TFRS / BOBİ FRS) | Tax records |
|---|---|---|
| Severance pay | Provision by actuarial calculation | Expense when paid |
| Depreciation | Useful life set by management | Rates published by the administration |
| Impairment, expected credit loss | Recognised | Limited acceptance |
| Deferred tax | Yes | No |
| Revenue | Transfer of control | Invoice and delivery rules |
| Leases | On balance sheet under TFRS 16 | Rent expense |
| Inflation | IAS 29 applied in hyperinflation | No adjustment in tax records for 2025–2027 (Law No. 7571) |
Our services
- Transition: opening balance sheet, accounting policies, restatement of comparatives, transition differences in equity.
- Periodic reporting: monthly or quarterly statements, group reporting packages (in the foreign parent's format), reconciliations for consolidation.
- Tax–financial reconciliation: a permanent reconciliation updated at each close.
- Severance provision: coordination with an actuary.
Internal control and financial review
In growing businesses, errors and misuse usually arise from the same weak points. The control review we carry out on request:
| Area | Control |
|---|---|
| Cash and bank | Authority and signing limits, daily reconciliation, cash receipts |
| Purchasing | Who can open supplier accounts, three quotes, order–delivery note–invoice matching |
| Sales and receivables | Discount authority, credit limits, returns and cancellations |
| Inventory | Counts, wastage, impairment. Inventory valuation |
| Payroll | Ghost employees, overtime approvals, advances |
| Related parties | Transactions with partners and managers, arm's length prices |
Output: a risk map, a prioritised remediation list and a short management report. Where fraud is suspected, findings are documented with a lawyer for legal proceedings.
FAQs
Is TFRS different from IFRS? Not in content; TFRS is the Turkish text published by KGK. The practical choice is between full TFRS and BOBİ FRS.
Can the tax books be dropped? No. Tax records continue; financial statements are prepared separately.
Who chooses accounting policies? Company management, not the auditor.
Sources
KGK: TFRS, BOBİ FRS, KÜMİ FRS; IAS 29; Law No. 7571; Turkish Commercial Code No. 6102 arts. 88 and 397.