Announcement from the CMB regarding inflation accounting

The Capital Markets Board (CMB) issued an announcement regarding the Inflation Accounting Practice in its final bulletin of 2023. Accordingly, publicly traded companies will apply inflation accounting starting with their annual financial reports for the accounting period ending as of December 31, 2023.

The following statements were included in the announcement regarding the matter:

“In the announcement made by the Public Oversight, Accounting and Auditing Standards Authority on 23.11.2023, it was publicly declared that the financial statements of enterprises applying Turkish Financial Reporting Standards for annual reporting periods ending on or after 31.12.2023 must be presented by adjusting for the effects of inflation in accordance with the relevant accounting principles contained in Turkish Accounting Standard 29 'Financial Reporting in Hyperinflationary Economies' (TAS 29), and that institutions or organizations authorized to regulate and supervise in their own fields may determine different transition dates for the implementation of TAS 29 provisions.

In this context;

It has been decided that issuers and capital market institutions subject to our Board's financial reporting regulations that apply Turkish Accounting/Financial Reporting Standards shall implement inflation accounting by applying the provisions of TAS 29, starting with their annual financial reports for the accounting period ending as of 31.12.2023,
That capital market institutions and issuers with a special accounting period shall implement inflation accounting by applying the provisions of TAS 29, starting with their annual financial reports for the first accounting period ending after 31.12.2023,
That the notification periods determined in Communiqué II-14.1 'Principles Regarding Financial Reporting in Capital Markets' and Communiqué II.14.2 'Principles Regarding Financial Reporting of Investment Funds' shall be extended by 10 weeks for the annual financial reports where TAS 29 is applied for the first time, and by 6 weeks for the first two interim financial reports to be prepared following the first annual financial reports to which inflation accounting is applied for those with dates of 31.03.2024 and 30.06.2024 and those with special accounting periods."