BOBİ FRS or TFRS? Which Turkish Financial Reporting Framework Applies?
Obligation to apply TFRS, independent audit scope and the limited choice available: the decision steps for preparing financial statements under TFRS or…
OUR SERVICES
IFRS / TFRS Financial Reporting Support for standards-compliant financial statements
We work with your finance team on conversions, disclosures and consolidation when financial statements are prepared under TFRS, IFRS or BOBİ FRS.
What does this service cover?
In Türkiye, companies subject to statutory audit prepare their financial statements under the Turkish Financial Reporting Standards (TFRS) issued by the Public Oversight, Accounting and Auditing Standards Authority (KGK) — or, if they are audited but do not apply TFRS, under the Financial Reporting Standard for Large and Medium-sized Enterprises (BOBİ FRS). Companies reporting to foreign shareholders or lenders may also need IFRS reporting.
Prime Numeris supports the preparation of financial statements under these frameworks from the statutory books.
Who is it for?
- Companies subject to statutory audit Businesses that must prepare financial statements under TFRS or BOBİ FRS.
- Subsidiaries with group reporting Companies submitting IFRS packages to a foreign parent or shareholder.
- First-time audited companies Businesses crossing the audit thresholds and preparing for their first reporting cycle.
- Companies raising finance Management teams speaking with lenders or shareholders who require standards-based statements.
- Typical sectors Manufacturing, trading, energy, construction, services and group structures.
COMMON CHALLENGES
Common reporting challenges
Squeezed by the audit timetable
Conversion work is done during the audit, under time pressure and repeatedly.
Notes prepared at the last minute
Information is scattered, so notes end up incomplete or inconsistent.
Unclear accounting policies
No consistent policies for revenue, leases, provisions or financial instruments.
Hyperinflation adjustments are demanding
Data and indexation are not ready for TMS 29 / BOBİ FRS Section 25 calculations.
Manual consolidation
Intra-group transactions and related-party reconciliations are rebuilt every period, with a risk of error.
SCOPE OF SERVICE
What our IFRS / TFRS reporting support covers
Financial statement preparation support
Support in preparing TFRS/IFRS balance sheet, profit or loss, cash flow and equity statements.
Financial statement conversions
Calculating adjustments from statutory books to TFRS, IFRS or BOBİ FRS.
Accounting policy assessment
Comparing current practice with the standards and recommending policies.
Note preparation
Drafting the disclosures required by the standards.
Consolidation support
Consolidating subsidiaries and eliminating intra-group transactions.
TMS 29 / IAS 29 inflation adjustment
Restating the financial statements for inflation: separating monetary and non-monetary items, indexing non-monetary items and calculating the gain or loss on the net monetary position.
TFRS 16, 15 and 9
Calculating and documenting lease, revenue and financial instrument accounting.
BOBİ FRS reporting
A separate workstream supporting statements and notes for entities applying BOBİ FRS.
Profit/loss reconciliations
Reconciliation tables explaining differences between statutory and reported profit or loss.
Is this scope right for your business?
In a short initial call we listen to your current situation and expectations, and define the right scope for your business together.
What it brings to your business
On-time reporting
Conversion and note work is completed ahead of the audit timetable.
Documented calculations
Every adjustment is recorded with its rationale and calculation.
Comparable information
Shareholders and lenders receive standards-based, comparable statements.
A repeatable process
Checklists and templates make future periods easier to prepare.
What you receive
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Conversion working files
Documented files showing the calculation and basis of each adjustment.
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TFRS / BOBİ FRS financial statements
Draft statements prepared under the applicable framework.
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Draft notes
Disclosure sets required by the standards.
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Adjustment entries
A list of entries bridging statutory books to the reporting basis.
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Profit/loss reconciliation tables
Tables explaining differences between statutory and reported profit or loss.
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Reporting checklists
Checklists that make the process repeatable in future periods.
How we work
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01
Confirm the framework
We confirm the company’s TFRS, BOBİ FRS or IFRS reporting obligation and timetable.
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02
Gap analysis
Statutory books and current practice are compared with the standards; areas needing adjustment are listed.
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03
Conversion and calculations
Adjustments, TMS 29 and TFRS 16/15/9 calculations and consolidation work are performed.
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04
Statements and notes
Financial statements and draft notes are prepared and supported by profit/loss reconciliations.
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05
Audit readiness and handover
Working files are organised for the auditors’ review and a checklist is set up for future periods.
Frequently asked questions
Should we apply TFRS or BOBİ FRS?
Under KGK rules, audited entities that do not apply TFRS use BOBİ FRS. Which framework applies is confirmed at the start based on the company’s status and choices.
Do you perform statutory audits?
No. This service supports the preparation of financial statements; no audit opinion is issued. Statutory audits are performed by firms authorised by KGK.
Is the hyperinflation adjustment (TMS 29) still required?
KGK required entities applying TFRS and BOBİ FRS to present annual financial statements for periods ending on or after 31 December 2023 adjusted for inflation. Current KGK announcements are checked for each period.
What do you need for consolidation?
Financial statements of group companies, a list of intra-group transactions and reconciliations, and the group structure are enough to start.
Should we prepare for TFRS 18 now?
TFRS 18 has been issued by KGK for periods beginning on or after 1 January 2027. Given the changes to the presentation of profit or loss, assessing the transition impact early can be useful.
Request a financial reporting consultation.
Tell us which framework you apply or need to apply (TFRS, BOBİ FRS, IFRS) and your reporting timetable; we will clarify your needs together.
- Complimentary initial consultation
- Needs assessment
- Tailored approach
- advisory@primenumeris.com
- +90 553 012 13 27
- Bursa, Türkiye
Meeting request
Briefly describe your situation and we will contact you to arrange a suitable time to talk.