Transition Analysis and Gap Report
Existing VUK accounting records are compared with TFRS requirements. Gap areas are reported along with a prioritised transition timeline and resource planning.
Gap Analysis Transition Planning
Financial Reporting Standards
Financial statements,
structured to international standards.
For companies subject to independent audit or planning to go public, the TFRS conversion process is managed comprehensively — from accounting policies to the opening balance sheet, from notes to audit readiness.
3 TTK Size Criteria
6102 Legal Basis (TTK)
2013 TFRS Obligation Start
FROM VISION TO VALUE AKBAŞ ADVISORY
Legal Framework
TFRS
Turkish Financial Reporting Standards
Independent audit requirement under Turkish Commercial Code No. 6102, Article 397
KGK (Public Oversight, Accounting and Auditing Standards Authority) regulations
TFRS/IFRS-compliant international reporting framework
Public company reporting under CMB (Capital Markets Board) regulations
Audit readiness support under Independent Audit Regulations
Our Expert Team
TFRS/IFRS &
Independent Audit Specialist
Independent Audit Expertise
Service Scope
For companies subject to independent audit under the Turkish Commercial Code, or those that will become subject to audit in the future, transitioning to financial reporting standards is a mandatory process. This process is not merely about reorganising accounting records; it encompasses the comprehensive migration of asset valuation methods, accounting policies and note requirements into the TFRS framework.
For companies planning to go public, attracting foreign investors or using international credit, TFRS-compliant financial statements have become a key indicator of corporate credibility. TFRS-based financial analysis is increasingly emerging as a standard requirement in banks' project and facility financing evaluations.
Akbaş manages the TFRS conversion process with its expert team. Every stage — from transition analysis to opening balance sheet preparation, from documenting accounting policies to audit readiness — is completed under expert supervision. Throughout the process, coordination with audit firms is maintained and all required working papers are prepared in full. This approach accelerates the audit process and creates a basis for the company to receive more cost-effective audit proposals.
Applied Standards
TFRS Turkish Financial Reporting Standards
IFRS International Financial Reporting Standards
BOBİ-FRS Financial Reporting Standard for Large and Medium-sized Enterprises
KÜMİ-FRS Financial Reporting Standard for Small and Micro Enterprises
US GAAP For companies listed on US exchanges or reporting to US investors
TFRS Conversion Financial Reporting Independent Audit Accounting Policies KGK Compliance BOBİ-FRS KÜMİ-FRS Audit Readiness
Service Areas
Every stage, a distinct expertise.
TFRS conversion is a multi-layered process. Every stage from analysis to reporting is managed under expert supervision, tailored to your company's structure.
Accounting Policy Development
Valid accounting policies under the TFRS framework are selected, formalised and documented in accordance with the company's transaction structure.
Policy Selection Documentation
Financial Statement Conversion
The opening balance sheet is prepared under TFRS 1. Comparative period financial statements are restated on a TFRS basis.
Opening Balance Sheet Comparative Period
Notes and Disclosure Requirements
TFRS notes mandated by KGK are prepared. Accounting policy disclosures, materiality assessments and asset class details are reported.
Notes Preparation KGK Compliance
Independent Audit Readiness
A pre-audit review is conducted; deficiencies are identified and addressed. Technical support is provided during the auditor query response phase.
Pre-Review Auditor Support
Periodic Reporting Support
After the initial conversion, support is provided for periodic TFRS reporting processes. Standard changes and KGK updates are incorporated into the company's agenda.
Ongoing Support Regulatory Tracking
Service Scope
Every standard managed,
a documented conversion.
The scope of TFRS conversion is not limited to general headings. The service items below are assessed based on your company's structure and implemented accordingly.
Opening Balance Sheet Preparation
Preparation of the opening balance sheet as of the transition date under TFRS 1 and assessment of exemptions.
Accounting Policies Package
Selection, formalisation and management approval processes for TFRS-compliant accounting policies.
Asset Valuation Methods
TFRS valuation principles for property, plant and equipment, intangible assets, investment properties and financial instruments.
IFRS 16 Lease Contracts
Lease asset and lease liability calculations; restructuring the distinction between finance leases and operating leases under IFRS 16.
IFRS 9 Financial Instruments
Classification, measurement and expected credit loss assessment of financial assets and liabilities under IFRS 9.
Employee Benefits
Actuarial calculation of severance pay provision under IAS 19 and reporting of employee benefit plans.
Notes and Disclosure Package
IAS 1-compliant note structure; changes in accounting estimates, materiality decisions and related party disclosures.
Technical Support for Auditor Queries
Written and oral response preparation for auditor queries during the independent audit process; working paper and evidence file support.
Working Model
From analysis to audit,
every step defined.
The TFRS conversion process takes shape according to the company's size and accounting infrastructure. The steps below reflect a typical transition process; scope is clarified at the initial meeting.
01
Current Status Analysis and Gap Identification
The company's existing accounting structure, financial statements and transaction diversity are reviewed. Gap areas arising from TFRS requirements are reported in order of priority.
02
Transition Plan and Accounting Policies
The transition timeline, resource requirements and accounting policies are determined. Optional exemptions and mandatory exceptions under TFRS 1 are assessed.
03
Financial Statement Conversion
The opening balance sheet is prepared; comparative period financial statements are transitioned to TFRS basis. Specific calculations under IFRS 16, IFRS 9 and IAS 19 are completed.
04
Notes Preparation and Reporting
An IAS 1-compliant financial statement set and comprehensive notes package are prepared. Accounting policy disclosures, estimation uncertainties and materiality decisions are documented.
05
Independent Audit Process Support
Written and oral responses to auditor queries are prepared; working papers and evidence files are supported. Post-audit correction suggestions are carried into the relevant period reporting.
Key Facts in TFRS Conversion
Standards change;
being prepared
does not.
"Sound incentives start not with numbers, but with foresight. We listen first, then put it into numbers."
3
TTK Size Criteria
Total assets, net sales revenue and number of employees; companies exceeding two of these criteria are subject to independent audit.
2
Parallel Record System
During TFRS conversion, VUK tax records and the TFRS financial reporting system run simultaneously; both are properly maintained.
2+
Comparative Period
TFRS covers comparative prior period information in the first year of application; transition planning is made accordingly.
Frequently Asked Questions
Questions about
TFRS conversion.
What is the fundamental difference between TFRS and VUK accounting?
TFRS provides comparable financial statements for international investors and analysts, while VUK determines the accounting record structure in compliance with Turkish tax legislation. Differences between the two systems are particularly pronounced in asset valuation methods, provision calculations, lease contract accounting (IFRS 16) and financial instrument reporting (IFRS 9). Companies that transition to TFRS must also maintain VUK-compliant records for tax purposes; two parallel record systems are managed concurrently.
Which companies are subject to independent audit?
Companies that exceed at least two of the size criteria defined under Article 397 of the Turkish Commercial Code No. 6102 and the Presidential decree for two consecutive financial years are subject to independent audit. These criteria are total assets, annual net sales revenue and number of employees; threshold values are updated regularly. Additionally, companies whose shares are traded on a stock exchange, as well as entities subject to public oversight and supervision such as banks, insurance companies and investment trusts, are subject to audit regardless of size criteria.
How long does TFRS transition take, and when should I start preparing?
The transition period depends on the company's size, existing accounting infrastructure and transaction diversity. For simple structures, it ranges from four to six months; for complex structures, six to twelve months. Since TFRS covers comparative period information, it is critical to initiate the process at least twelve months before the start of the first audited period. Starting early from the moment you learn that you are subject to audit directly affects the quality of the transition.
What benefits will TFRS transition bring to our company?
In processes such as attracting investment, obtaining corporate credit, foreign partnership negotiations and IPOs, TFRS-compliant financial statements offer transparency aligned with international standards. TFRS-based financial analysis is increasingly common in banks' project financing evaluations. Furthermore, TFRS enables more economically accurate valuation of assets and liabilities, creating a more reliable analytical basis for management decisions.
Do you work with our existing accounting team during the transition?
Yes. We conduct the process jointly with the company's internal accounting team. During the transition, we organise working sessions to help the team internalise TFRS accounting policies, and provide technical support during the opening balance sheet preparation and financial statement conversion phases. We also support you during the audit process at the auditor query response stage. After the transition, the goal is for the team to largely sustain periodic TFRS reporting independently.
TFRS/IFRS Advisory
Let us evaluate your TFRS conversion process together.
We listen to your company's current accounting structure and audit timeline, and create the optimal transition plan together.
Request a Meeting The initial meeting is for preliminary assessment purposes.
Bir sonraki adım
Take your financial reporting to
international standards.
We invite you to a meeting to manage your TFRS conversion process with our expert team, with a plan tailored to your company's structure.