Comparison of Financial Reporting Standards for Small and Micro Enterprises (FRS for SMEs ) with Other Standards (TFRS-FRS for LMSEs) in the Conceptual Framework and Financial Statements

The first steps of standardization in Türkiye were taken with the General Communiqué on Accounting System Application, which was legalized in 1992 and came into force in 1994. This system, which came into force with the Uniform Accounting System and can also be described as a local standard, has become insufficient to meet the requirements of globalization. With globalization, the system has evolved from the national dimension to the international dimension due to reasons such as the expansion of businesses from the national market to the international market and the encouragement of foreign capital investments. In parallel with this, international accounting standards, which the European Union Countries have started to apply to their banking systems since 2005, will also be implemented in our country in the future. The Turkish Commercial Code was amended in 2011 to create the infrastructure for International Accounting Standards (IAS). Then, in 2013, the Turkish Financial Reporting Standards (TFRS); in 2018, the Financial Reporting Standards for Large and Medium Enterprises (FRS for LMSEs); and finally, as of 2023, the Financial Reporting Standards for Small and Micro Enterprises (FRS for SMEs) came into effect. The aim of this study is to reveal the similarities and differences of KUMİ FRS, which will concern approximately 99.8% of the businesses in Türkiye, from the previously implemented TFRS and BOBİ FRS in terms of conceptual framework and financial statements to be included in the application. When we look at the conceptual framework, all three standards mention basic and supporting qualitative features. In this sense, they mentioned the basic features of useful financial information, such as relevance and realistic presentation, as well as supporting features, such as understandability, comparability, and timely presentation. However, this is not clearly mentioned in the current accounting system. There are differences in both the content and type of financial statements that provide important data for accounting information users. In addition, all standards attach great importance to footnotes.