MERCHANDISE COST WITHIN FINANCIAL REPORTING STANDARD FOR LARGE AND MEDIUM-SIZED ENTITIES (FRS FOR LMES) AND TAX PROCEDURE LAW (TPL)

Inventory cost is calculated by non-public interest entities in accordance with two different regulations carried into effect by Tax Procedure Law and Financial Reporting Standards for large and medium-sized entities. Add to this, Financial Reporting Standards for large and medium-sized entities have alternative practices based on maturity. Therefore, different inventory cost and different accounting practice are both in question. The study examines and clarifies these differences with a critical approach. The study is supported with sample solutions and based on written printed sources relating to the topic. Results of sample solutions indicates that diversifying accounting practices depending on maturity conflict with qualified financial information. Because, ignoring interest and non-use of amortized cost method on purchase transaction with short term maturity are both at odds with basic rules of accounting such as accrual basis, matching principle, substance over form