A Study on the Assessment of the Conversion Process of Financial Statements Prepared According to Different Accounting Regulations


Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi, vol.23, no.2, pp.690-708, 2022 (Peer-Reviewed Journal) identifier


This study aims to evaluate the process of converting the financial statements of firms, which are subject to independent audits in Türkiye, prepared according to the Accounting System Application General Communiqués (ASAGC) to Turkish Accounting / Turkish Financial Reporting Standards (TAS / TFRS) or Financial Reporting Standard for large and Medium-Sized Entities (FRS for LMSE). For this purpose, a qualitative research method was utilized in the study. In this context, face-to-face or online interviews were conducted with 25 professionals working in independent audit companies and taking an active role in the transformation of financial statements, using a semi-structured interview form. In the study, although the majority of the participants found the dual accounting system to be healthier and more beneficial, it was determined that it was difficult to implement due to the accounting infrastructures of the enterprises and the additional costs that the system would bring. It was revealed that the participants had difficulty in obtaining the information and documents requested from the customer enterprise most during the transformation process and they had more problems in the preparation of the cash flow statement. In addition, while the majority of the participants thought that the information presented in the financial statements prepared by conversion has the qualitative characteristics that useful financial information should have, some participants think that the presented information does not have the feature of being presented in a timely manner. It was observed that the participants, who stated that reporting according to different regulations was unnecessary, stated that businesses should report according to a single regulation and this regulation should be TAS / TFRS. However, it has been determined that FRS for LMSE is preferred by the majority of the participants if they continue to report according to two different regulations as in the current practice.