Will footnotes be written in the balance sheet to be given as an annex to the 2024/2nd period provisional tax return?
Footnotes have been written in the income statements in provisional tax returns submitted for a long time and this continues. Footnotes must also be written in the balance sheets to be given with inflation adjustment. There is also a footnote section in the Balance Sheet table in the declaration format in the Declaration Regulation Program. Since there is no provision in Communiqué No. 555 and Circular No. 165 stating that footnotes will not be written, we evaluate that footnotes should be written.
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Purpose of Balance Sheet and Income Statement Footnotes
Footnotes are prepared to provide a better understanding of financial statements. They include the details behind the figures presented in the financial statements, accounting policies and important explanations. In this way, users looking at the financial statements (investors, creditors, auditors, etc.) obtain more comprehensive information about the financial status and performance of the enterprise.
Footnotes increase the transparency of financial statements and tell the story behind the numbers. It is not enough to provide numbers alone in financial statements; how these numbers are formed, under what assumptions they are calculated, and possible uncertainties are explained in footnotes. In this way, people who analyze financial statements can evaluate the real situation of the company more accurately.
Footnotes are also necessary to comply with international financial reporting standards (IFRS) and Turkish Financial Reporting Standards (TFRS). These standards include detailed rules on how to prepare footnotes and what information should be presented.
Balance sheet and income statement footnotes are an integral part of financial reporting. These footnotes help financial statement users understand the details and accounting policies behind the reported numbers, thus allowing them to make more informed decisions about the company’s financial situation and performance.
Source: Istanbul Chamber of Certified Public Accountants
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