Abstract:

With goods, services and capital movements exceeding national borders, enterprises, which are parties to international trade transactions, have become in need of a common language in the field of accounting and finance in order to provide comprehensible, comparable and fair reporting. For this reason, financial statements need to be according to globally known accounting standards in order for individuals reading various financial information to the same result. The tax payable at the end of the reporting period needs to be calculated based on the taxation laws, but the accounting records thus prepared are not in accordance with the standards. Differences in practices and their results constitute the subject for these papers. Methodology- Accounting records of the products that were imported by this foreign trade company were examined and compared with TAS. Findings- Foreign exchange differences arise in favor of or against the enterprise in the event that there is a difference between the transaction date and payment date for foreign trade transactions made in foreign currencies. The principles applied in the accounting of foreign exchange differences have affected the value of the inventories, profit for the period and the amount of tax to be paid at the end of the period.

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