ACCOUNTING FOR FINANCIAL LEASING TRANSACTI？ONS WITHIN NATIONAL AND INTERNATIONAL REGULATIONS

Long term assets are one type of the assets that companies need to sustain their activities and to make invest. Long term assets that are needed are obtained through purchasing and leasing. In this process, called financial leasing, companies rents assets from leasing companies for a certain period and after the end of the rental period they usually buy these assets for a small amount. There are different national and international regulations regarding the accounting of financial leases. In addition to the national regulations made by the Turkish Tax Law, there is TAS 17 Leases issued by the International Accounting Standards Board (IASB) and that is promulgated in the Official Gazette in Turkey on 24.02.2006. Also second standard, IFRS 16 Leases, is issued by IASB on January 2016 and applies to annual reporting periods beginning on or after 1 January 2019. Finally, for companies that do not apply the full set of TAS/TFRS but are subject to independent audit, Financial Reporting Standard for Large and Medium-sized Enterprises (FRS for LMEs) is promulgated in the Official Gazette on July 29, 2017. In this study, the financial leasing transactions were examined in the context of the four regulations both in terms of leaser and leaseholder and their differences are revealed