Abstract:

In accordance with periodicity concept, which is one of the basic concepts, the results of each accounting period of companies activities must determine independently of each other. Due to the fact that spreaded on years buildings and repairing are usually extending more than one year, different applications are emerging. One of these methods is the completed contract method which must be applied according to the income tax law. According to this method, the contract revenue and costs are considered to be obtained during the accounting period in which the work is completed and the taxation is carried out in the period when the work is over. For this reason, the completed contract method contradicts the "Periodicity Principle" and causes various problems to arise in the accounting and reporting of the income and costs of the entity's operating periods. The other method is the percentage of completion method specified in the TMS 11 construction contracts standard. According to this method, the completion level of the work is determined on the basis of the period in which the revenues and costs are realized.  For this reason, it is more accurate to apply this method in terms of periodicity principle. In this study, accounting records and comparisons have been made with respect construction contracting works over the years, which should be prepared within the tax legislation and TMS 11 construction contracts standard.    

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