The Effects of Property, Plant and Equipment (TAS 16) Standard on Cost of Sales of Manufacturing Companies

According to the Turkish Commercial Code that came into force in July 2012, the all capital companies that meet the criteria described by the Council of Ministers are required to be in compliance with accounting and financial reporting standards published by the Public Oversight, Accounting and Auditing Board. There are several differences between the local accounting regulations and the standards in terms of valuation, computation and presentation. These differences also affect the cost of sales of the companies that result in differences in the calculation of costs of goods manufactured. The purpose of this study is to examine and demonstrate the potential effects of the TAS 16 Property, Plant and Equipment on calculations of manufacturing costs and the cost of sales of manufacturing companies.