Abstract:

In the construction sector, accounting practices have a unique structure in terms of TMS (Turkish Accounting Standards) and VUK (Tax Procedure Law) because the beginning and completion of work is at different times in this sector, particularly the construction and repair billings spread over years. While completion contract method was used in tax applications made in accordance with the uniform chart of accounts, percentage of completion method must be used in TMS 11 standard. However, TFRS 15 Revenue from Contracts with Customers has gone through significant changes related with many revenue generating transactions, especially TMS 11 standard. In this context, the purpose of this study is to explore the differences of the construction works in accounting practices within the scope of TMS and VUK. In accordance with this purpose, it was evaluated how construction works must be accounted and reported due to case studies. As a result of the study, it has been determined that the new standard of TFRS 15 and the existing TMS 11 standard for the years-wide construction and repair operations have been separated on the revenue side and there has been no change in cost calculation.

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