FINANCIAL REPORTING IN THE CONSTRUCTION CONTRACTING COMPANIES IN TURKEY IN PERSPECTIVE FROM TAX REGULATIONS AND ACCOUNTING STANDARDS

The main focus is of this study to explain the difference between tax legislation and Accounting Standard applications of construction contracting companies in Turkey and how this difference affects the profitability of the period and financial reporting. For this purpose, firstly, the completion method which is used in the reporting of construction accrual transactions according to tax legislation is considered. After that, TFRS 15 which has been applied since 1 January 2018 and removed all accounting standards about Construction Contracts , recording and reporting of revenue and this standard’s innovations to existing standards is examined. In addition, the study includes comparing, the arrangements for the construction companies in Financial Reporting Standard for Large and Medium-sized Entities (BOBİ FRS), which was started to be implemented from the beginning of 2018, dated 29.07.2017 and all these different regulations. The study was conducted by literature and legislation survey, the current situation is determined and the results of the differences are interpreted.