Financial Reporting Standards for
Small-sized Entities (KÜMİ)

Financial Reporting Standards for Small-sized Entities (KÜMİ) have been developed for the entities which are not subject to audit but bookkeeping is made according to balance sheet basis.

An entity can be classified as small-sized in case of meeting at least two of the below stated criterion;

  • Asset total has to be higher than 350.000 EURO and lower than 4.000.000 EURO
  • Net Sales has to be higher than 700.000 EURO and lower than 8.000.000 EURO
  • Number of employees has to be more than 10 and less than 50

Financial Reporting Standards for Small-sized Entities is in line with “Think Small First" approach in the EU Accounting Directive. It provides a cost-based financial reporting principle for small-sized entities. Main principles can be stated as below;

  • Cost-based financial reporting principle is accepted
  • It is consistent with International Financial Reporting Standards
  • Almost all accounting and reporting issues that an entity may face with have been included