For tax purposes, under Article 323 of the Tax Procedure Law an allowance may be made for receivables in litigation or enforcement, or small receivables unpaid despite protest or written demand. Under TFRS, the allowance follows the expected credit loss model and is recognised even before the receivable falls due.
Source: 213 sayılı VUK m. 323, TFRS 9
Related terms
Expected credit lossCredit losses on financial assets that are estimated, taking forward-looking information into account, and provided for in advance.Non-deductible expensesExpenses recorded in calculating commercial profit that cannot be deducted in determining taxable corporate income under tax legislation.Deferred taxTax payable or recoverable in future periods, calculated on temporary differences between the carrying amounts of assets and liabilities in the financial statements and their tax bases.Accounting estimatesThe determination by management judgement of amounts that cannot be measured precisely, such as provisions, useful lives, expected credit losses and fair values.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Accrual basis of accountingThe principle of recording transactions as income, expenses, assets and liabilities in the period in which they occur, rather than when cash is received or paid.
Last updated: October 31, 2026 · This definition is for general information only.