Abstract:

The objective of this study is to examine the financial transactions of the widespread construction, commitment and repair works in the framework of the Tax Procedure Act, TMS 11 Construction Contracts Standard and TFRS 15 Customer Contracts Standard. The study found that the financial statements prepared according to the method of completion adopted by tax laws gave misleading results for and financial statements users. While the construction work is ongoing, the method is contrary to the concept of periodicity, although it is not given any information about profit/danger. The financial statements prepared according to the completion percentage method in TMS 11 are in line with the term periodicity but contain estimated results. In this standard, the Customer Agreements Standard 15 has been introduced to eradicate the conceptual complexity that has not been clearly defined as the revenue. The financial statements prepared according to the input method defined in TFRS 15 provide more detailed information about the amount of revenue obtained from the construction work.

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