Calculation of Production Costs According to Turkish Accounting Standards (TAS) and Accounting Through Draft Chart of Accounts Compatible with Financial Reporting Standards: Light Bulb Production Sample Case

Abstract

The Public Oversight Board (KGK) released its draft chart of accounts compatible with the financial reporting standards to the public view on December 25th, 2018. This study focuses on the cost accounts of the new draft chart of accounts. Normal costing was implemented in a light bulb production business in accordance with the TAS 2 Inventories standard and its accounting was carried out using the draft chart of accounts in accordance with financial reporting standards. Thus, the aim was to provide businesses that carry out their reporting in accordance with TAS/TFRS sets, with a complete costing application integrated with accounting records. The new draft chart of accounts includes significant differences in regards to cost accountings. It is possible to use optional accounts especially in recording general production expenses and businesses are able to monitor their costs individually until the production is complete. With this application, alternative recording methods provided by the new draft chart of accounts are presented using the real application cost data.