Financial Reporting Standard for Small and Micro Enterprises (KÜMİ FRS) has been published
The 2022 version of the Financial Reporting Standard for Small and Micro Enterprises (KÜMİ FRS) has been published in the Official Gazette No. 32075 (2nd Supplementary) on 16/01/2023, following the decision of the Public Oversight, Accounting and Auditing Standards Authority dated 20/12/2022.
The aim of KÜMİ FRS is to ensure that the financial statements of real and legal persons, who are not subject to independent audits under 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, needs-appropriate, and comparable information, in accordance with Articles 64 to 88 of the TCC.
KÜMİ FRS will be applied by real and legal person traders who are not subject to independent audits, as defined in the “Decision on the Determination of Companies Subject to Independent Audit,” which came into force with the Presidential Decision No. 6434 dated 29/11/2022. It will be applied to the following financial statements:
- Financial statements that are prepared under other regulations by those subject to independent audits, but outside the scope of the Decision on the Determination of Companies Subject to Independent Audit,
- Financial statements requested to be prepared by institutions, boards, or organizations responsible for the regulation and audit of specific sectors, or by reference to the standards published by the Public Oversight, Accounting and Auditing Standards Authority.
Small and micro enterprises, other than those mentioned above, may choose to apply KÜMİ FRS voluntarily when preparing their financial statements under the TCC.
According to Article 5 of the Board Decision on the 2022 version of KÜMİ FRS, real and legal person traders who exceed the threshold values of at least two of the following three criteria are considered small enterprises in the subsequent reporting period:
- Total assets of 3.5 million Turkish Liras or more,
- Annual net sales revenue of 7 million Turkish Liras or more,
- Average number of employees of 10 or more.
Real and legal person traders who do not meet these criteria will be classified as micro enterprises under this Decision.
KÜMİ FRS has come into effect on the date of publication and is applicable for accounting periods starting from 1/1/2023.
You can access the Board Decision on the 2022 version of KÜMİ FRS and the 2022 version of KÜMİ FRS here.
Best regards,
BİLGENER
