Framework for Local Financial Reporting and Financial Reporting Standard for Large and Medium Sized Entities: A Literature Review (2016 - 2017)

Abstract

In Turkey, financial reporting is regulated by Turkish Public Oversight, Accounting and Auditing Standards Authority within the framework of the concepts of independent audit and public accountability. For the purpose of financial reporting, entities that are subject to independent audit and publicly accountable are subject to Turkish Financial Reporting Standards (TFRS) that are in compliance with International Financial Reporting Standards; however, entities that are not publicly accountable but subject to independent audit have two options either to use TFRS or Financial Reporting Standard for Large and Medium Sized Entities (FRS for LMEs). This paper focuses on a literature review related to the papers published in referred journals on the recently published FRS for LMEs and its draft predecessor which was called as Framework for Local Financial Reporting (FLFR) and offers suggestions for future research.