General Investigation of Financial Reporting Standards from IFRS for SMEs to Present

Accounting, which is essentially a recording technique, carries out its activities within certain principles. With the effect of accounting being a social science, these principles are formed by considering the accounting activities needs. Accounting activity has a deep-rooted history, but it had transformed into its current role with the 18th century when private businesses’ influence in commercial life was increased. Especially towards the end of the 20th century, studies were carried out on establishing international uniformed principles with the effect of the globalization of businesses. Today, accounting has entered a new era with International Financial Reporting Standards (IFRS), which have applications in many countries. However, since IFRSs are generally created, considering the needs of organizations that concern the public interest, they have not been suitable for smaller businesses. For this aim, the IFRS for SMEs set was published, but this set could not be applied for reasons such as cost and the unsuitability of small business characteristics. Afterward, ‘Financial Reporting Standard for Large and Medium-Sized Enterprises (BOBİ FRS)’ was published recently, and the ‘Financial Reporting Standard for Small and Micro Enterprises (KÜMİ FRS)’ draft was published for the implementation of smaller businesses in 2021. In this research, the formation process of these three sets of standards (IFRS for SMEs, BOBİ FRS, and KÜMİ FRS) were examined, and the differences between them were revealed, and a general evaluation was made.