Financial Reporting Standards of Revenue for Large and Medium-sized Enterprises; Review of Turkey and Somalia
Dr. Gökhan Baral, Ahmed M. Ali
In this study, the accounting records and financial reporting practices of revenues of large and medium-sized enterprises in Turkey and Somalia were examined. Large and Medium-sized Enterprises can contribute to the country’s economy by providing a large portion of production and employment. Large and Medium-sized Enterprises play an important role in promoting individual savings, regional equitable development, spreading property over a wide area, providing employment opportunities, and so on. In the increasingly competitive environment in recent years, the accounting and financing structures of large and Medium-sized Enterprises have become increasingly important. “International Accounting Standards” are not mandatory for enterprises in Somalia. However, international investor companies use “International Financial Reporting Standards”. Using International Financial Reporting Standards has now become a prerequisite for attracting international investors and for incorporating global economics. The application inTurkey is quite different from that of Somalia. The public interest entities or public profit-seeking organizations in Turkey is obliged to implement the International Accounting and International Financial Reporting Standards. Micro or small-scale businesses are excluded from this application. These businesses do record and report under the scope of Turkey general communique on accounting system application and tax procedure law. As of July 29, 2017, the Financial Reporting Standards for Large and Medium-Sized Enterprises was published in the official newspaper of the Republic of Turkey. Accordingly to this, In Turkey, the businesses that meet the definition of Large and Medium-Sized Enterprises hereafter are compulsory to report within the scope of Large and Medium-Sized Enterprises Financial Reporting Standards. The Financial Reporting Standards of the Large and Medium-Sized Businesses are simplified version of the international accounting and financial reporting standards. Large and Medium Enterprises Financial Reporting Standards are expected to improve the efficiency and effectiveness of the application. Financial Reporting Standards of Large and Medium-Sized Enterprises in Turkey will be an alternative solution to the problems of financial reporting encountered by Somalia’s large and medium-sized businesses.
Keywords: Somalia, Turkey, Accounting Standards, Large and Medium-Sized Enterprises Financial Reporting Standards, IAS / IFRS.
For full text: https://www.intraders.org/may/archive/
İstanbul: Hiperlink Yayınları, 2018.