Abstract:

The Public Oversight, Accounting and Audit Standarts Authority (POA) has put into effect the Financial Reporting Standard for Small and Micro Enterprises (FRS for SMEs) in the Official Gazette dated January 16, 2023, in order to expand the scope of the business in terms of the accuracy and comparability of its financial information. FRS for SMEs is a standard that serves as a guide that businesses within the scope of SMEs, who want to create their financial statements other than independent audit purposes, can benefit from in terms of accounting and financial statements for their transactions. With the FRS for SMEs coming into force, a reporting framework for businesses of different sizes and scales has been provided in our country, thus the scope of businesses and transactions in reporting financial information has increased. In the study, a general evaluation of FRS for SMEs was made, in addition, the issue of leases was examined comparatively within the framework of SMEs, Financial Reporting Standard for Large and Medium Size Enterprises (FRS for LMEs) and Turkish Financial Reporting Standard (TFRS) and their similar and different aspects were determined. It is envisaged that collections/payments related to operating leases in reporting frameworks to be reflected in profit or loss on a linear basis as income/expense, and it has been determined that they have similar characteristics in this regard. On the other hand, FRS for SMEs does not include investment real estate and sale-leaseback sections, so FRS for SMEs and other reporting frameworks differ in these matters. A sample application has been added to the study in order to concretize the differentiating aspects of the subject of leases within the scope of reporting frameworks.

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