A positive difference arising under the tax-basis inflation adjustment may be added to capital or offset against prior-year losses, while distributing it triggers taxation. The amount under TMS 29 usually differs from the amount in the tax books.
Source: VUK Mükerrer 298, TMS 29
Related terms
Inflation adjustment (tax)An adjustment made under tax legislation, when certain conditions are met, to remove the effects of price changes from the financial statements.TAS 29 (Financial reporting in hyperinflationary economies)The standard requiring entities whose functional currency is the currency of a hyperinflationary economy to state their financial statements in terms of the purchasing power at the end of the reporting period.Bonus issueIssuing shares to shareholders by adding a company's internal resources (reserves, retained earnings, capital adjustment differences) to its capital.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: November 8, 2026 · This definition is for general information only.