LEASING TRANSACTIONS AND INNOVATIONS OF TFRS 16

Abstract

With the new Turkish Commercial Code, which was put into effect in 2013, it has gained the opportunity to apply TFRSs in businesses other than publicly traded companies, financial institutions, insurance and pension institutions. Thus, when the TFRS application rate of the enterprises subject to audit is taken into account, it is seen that TFRSs are widely applied in the reporting of large enterprises in Turkey. Before TFRS 16 came into force, lease transactions were off the balance sheet. With this standard, leasing transactions are included in the balance sheet, therefore, rent expenses are not included in the Profit Loss Statement and Cash Flow Statement, and they are reported with the names of interest and depreciation. The subject of our study is the details of the TFRS 16 Lease standard, which will radically change the lease accounting for the lessees, and the sample accounting records on the innovations it brings