Understanding Turkey’s accounting standards framework is essential for any foreign company operating in the country. Turkey has adopted Turkish Financial Reporting Standards (TFRS), which are aligned with International Financial Reporting Standards (IFRS), ensuring that financial statements are comparable with global practices. This guide covers the accounting standards landscape in Turkey for 2026, including recent regulatory updates and compliance obligations.
Overview of Accounting Standards in Turkey
Turkey operates a multi-tier accounting standards system governed by the Public Oversight, Accounting and Auditing Standards Authority (KGK). The framework includes three main tiers:
- TFRS (türkiye Finansal Raporlama Standartları): The full set of Turkish Financial Reporting Standards, aligned with IFRS. Mandatory for public interest entities including publicly traded companies, banks, insurance companies, and other financial institutions
- BOBİ FRS: A simplified accrual-based framework designed for large and medium-sized non-public companies that are subject to statutory audit
- Uniform Chart of Accounts (Tekdüzen Hesap Planı): The statutory bookkeeping standard mandatory for all companies for tax reporting purposes
TFRS vs IFRS: Key Differences
TFRS is essentially the Turkish translation of IFRS with some local interpretations. The KGK translates and adopts each IFRS standard, issuing it as a corresponding TFRS standard. In substance, a company applying TFRS is also compliant with IFRS. However, there are minor differences in implementation guidance and transition provisions specific to the Turkish market.
For 2026, key IFRS amendments coming into effect include changes to IFRS 9 and IFRS 7 regarding classification and measurement of financial instruments, as well as Annual Improvements to IFRS (Volume 11).
Statutory Books and Tax Reporting
All companies in Turkey, regardless of whether they apply TFRS or BOBİ FRS for financial reporting, must maintain their books according to the Uniform Chart of Accounts and the Turkish Tax Procedure Law (VUK). This dual-reporting requirement is important for foreign companies to understand:
- VUK-based books: Used for tax calculations and reporting to the Revenue Administration
- TFRS/BOBİ FRS statements: Used for financial reporting, statutory audits, and group consolidation
- E-Ledger (e-defter): Electronic general ledger mandatory for companies above revenue thresholds
- E-Invoice (e-fatura): Electronic invoicing required for most commercial companies
Mandatory CPA Requirement
All companies in Turkey must appoint a local Certified Public Accountant (SMMM — Serbest Muhasebeci Mali Müşavir) who is responsible for preparing and signing tax returns, maintaining statutory books, filing monthly/annual tax declarations, and ensuring compliance with VUK and KGK regulations. This is a legal requirement — companies cannot file tax returns without a licensed CPA’s signature.
Statutory Audit Requirements
Statutory audit by an independent audit firm is mandatory for companies meeting certain size criteria. Companies subject to audit must apply either TFRS or BOBİ FRS. The KGK determines the audit thresholds, which are reviewed periodically. For 2026, companies exceeding two of the following three criteria must be audited: total assets above 150 million TL, net revenue above 300 million TL, or employee count above 150.
Sustainability Reporting (New)
Since January 2024, Turkey has adopted TSRS 1 and TSRS 2, which are translations of IFRS S1 (General Requirements for Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures). While initially applicable to larger public companies, the scope is expected to expand in the coming years.
Celikel CPA — Your Accounting Partner in Turkey
At Celikel CPA, we provide comprehensive accounting services for foreign companies including Turkish statutory bookkeeping (VUK/Uniform Chart), TFRS/IFRS financial statement preparation, e-invoice and e-ledger setup, monthly/annual tax return preparation, and liaison with statutory auditors.
Need professional accounting services? Contact us: yigit@celikelcpa.com | WhatsApp: +90 544 649 40 87
