Ever changing global markets with complex structures forced many actors to modify their systems. These actors who make up the financial system range from financial markets to banks all the way down to simple investors. Especially for banking, significant events of the early 1970s like the discontinuation of fixed exchange rate and the petroleum crises of 1974, had significant effects to trigger authorities even more to establish a sound global banking system. Late 1970s and early 1980s has been the period of substantial deregulation. As a result of this development, major banking crisis emerged towards the end of 1980s. Therefore, banking crisis has expediated the necessity of a strong regulatory process in world banking. Though Basel II aims to fix weaknesses of the banking system, the new accord leads banks to act in an abrasive manner towards small and medium-sized enterprises (SMEs). The purpose of this research is to evaluate the desirability of the International Financial Reporting Standards for small to medium-sized enterprises in Turkey, and their readiness to apply these International Financial Reporting Standards in the light of Basel II.