17.01.2023/17
Financial Reporting Standard for Small and Micro Enterprises (KÜMİ FRS) Published
The 2022 version of the Financial Reporting Standard for Small and Micro Enterprises (KÜMİ FRS) was published in the Official Gazette numbered 32075, dated 16/01/2023, with the decision of the Public Oversight, Accounting and Auditing Standards Authority dated 20.12.2022.
The purpose of KÜMİ FRS is to ensure that the financial statements of real and legal persons, who are not subject to independent auditing according to the Turkish Commercial Code (TCC) and who do not voluntarily apply the Turkish Financial Reporting Standards or the Financial Reporting Standard for Large and Medium-Sized Enterprises, provide accurate, relevant, and comparable information, in accordance with the provisions of Articles 64 to 88 of the TCC.
KÜMİ FRS will be applied to the financial statements of real and legal person traders who are not subject to independent auditing, according to the “Decision on Determining Companies Subject to Independent Auditing,” enacted by the Presidential Decree numbered 6434 dated 29/11/2022, as follows:
1) Financial statements prepared by companies not covered by the “Decision on Determining Companies Subject to Independent Auditing” enacted by the Presidential Decree, but which are subject to independent auditing according to other legislation,
2) Financial statements requested to be prepared with reference to the standards issued by the Public Oversight, Accounting and Auditing Standards Authority or by organizations responsible for regulating and auditing specific areas.
Other small and micro enterprises can choose to apply KÜMİ FRS voluntarily in their financial statements prepared in accordance with the TCC.
According to Article 5 of the Board Decision regarding the KÜMİ FRS 2022 version, traders whose total of at least two of the following three criteria exceed the threshold values will be considered small enterprises in the following reporting period:
a) Total assets of 3.5 million Turkish Liras or more.
b) Annual net sales revenue of 7 million Turkish Liras or more.
c) An average number of employees of 10 or more.
Traders who do not meet these criteria will be considered micro enterprises according to this Decision.
KÜMİ FRS became effective on its publication date for accounting periods beginning on or after 1/1/2023.
You can access the Board Decision on the KÜMİ FRS 2022 version and the KÜMİ FRS 2022 version here.
Best regards,
BİLGENER
