Turkiye passes law to drop inflation accounting for 3 fiscals

The requirement was introduced in 2023 from end-2023 to 2026 after inflation soared above 85 per cent in 2022 following big cuts in interest rates leading to a currency crash.

According to the new regulation, accounts of Turkish companies will not be subject to inflation adjustment for the 2025, 2026 and 2027 fiscals.

Turkey’s parliament has approved a law to drop a requirement for firms to produce inflation-adjusted accounts for three fiscals beginning this year.
The requirement was introduced in 2023 till 2026 after inflation soared above 85 per cent in 2022 following big cuts in interest rates.
Accounts of Turkish firms will not be subject now to inflation adjustment for the 2025, 2026 and 2027 fiscals.

The regulation authorises the president to extend this period for another three years, a global newswire reported.

Turkey’s Bnking Regulation and Supervision Agency (BDDK) recently said it had decided that banks and financial leasing, factoring, financing, savings financing and asset management companies would not apply inflation accounting.

Turkey’s annual inflation was 31.07 per cent in November, the lowest in four years.

Fibre2Fashion News Desk (DS)