Tax procedure law and within the context of accounting standards of Turkey: depreciation applications of tangible fixed assets
Year: 2018
Type: article
Abstract: Purpose-Businesses' investments in property, plant and equipment as well as the accuracy and the impacts of the depreciation procedure, applied to these assets and serve to the determination of end-of-period book values, are essential with respect to precise enlightenment of all parties utilizing financial statements.In this perspective, the purpose of the study is to examine the depreciation approaches of provisions in Turkish Accounting Standard 16 (TAS 16) and current Tax Procedure Law (VUK in Turkish abbreviation); and to present the similar and differentiating aspects in depreciation rate, depreciation period, determination of depreciable value, depreciation method and depreciation separation.Our study also includes explanations about the subject in Financial Reporting Standards for Large and Medium Sized Enterprises (BOBI FRS in Turkish abbreviation), for which there is an application requirement since 2018.Methodology-The Tax Procedure Law in Turkey applied accounting standards within the framework of the depreciation methods and these methods are explored the depreciation costs calculation formats.Findings-Both in the Tax Procedure Law and standards, although the name similarity calculations of depreciation methods, useful life, residual value, not as a tangible fixed asset is dissected into pieces all depreciation application can be made and in a different format all depreciated assets depreciation application can be made.Besides standard "production quantity method", also in the Tax Procedure Law.Conclusion-The fair for the first time to financial reporting standards will apply to businesses, and in particular a large number of tangible fixed asset has some difficulties with production enterprises.Calculation of the value of the entity remains some of these difficulties and declining-balance method can be applied.Therefore, such enterprises in the straight-line method of depreciation calculation featured our view that it would be more accurate of.
Source: Pressacademia
Author: Mustafa Canakcioglu
Institution: Kadir Has University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W2901769005