CMB Announcement on Inflation Accounting Adjustments

The announcement on the application of inflation accounting in bulletin No. 2023/81 of 28.12.2023 published by the Capital Markets Board ("CMB") reads as follows:

1. Announcement made pursuant to Board Decision No. 81/1820 of 28/12/2023:

ANNOUNCEMENT ON THE APPLICATION OF INFLATION ACCOUNTING

In its announcement of 23.11.2023, the Public Oversight, Accounting and Auditing Standards Authority announced that the financial statements of entities applying Turkish Financial Reporting Standards for annual reporting periods ending on or after 31.12.2023 must be presented adjusted for the effects of inflation in accordance with the relevant accounting principles in Turkish Accounting Standard 29 "Financial Reporting in Hyperinflationary Economies" (TAS 29), and that institutions or organisations authorised to regulate and supervise their own sectors may set different transition dates for the application of TAS 29.

Accordingly, it has been decided that:

a) issuers and capital market institutions subject to the Board's financial reporting regulations that apply Turkish Accounting/Financial Reporting Standards shall apply inflation accounting by applying TAS 29, starting with their annual financial reports for accounting periods ending on 31.12.2023,

b) capital market institutions and issuers with a special accounting period shall apply inflation accounting by applying TAS 29, starting with their annual financial reports for the first accounting period ending after 31.12.2023,

c) the notification periods set out in Communiqué II-14.1 "Principles of Financial Reporting in Capital Markets" and Communiqué II-14.2 "Principles of Financial Reporting of Investment Funds" shall be extended by 10 weeks for the annual financial reports in which TAS 29 is applied for the first time, and by 6 weeks for the first two interim financial reports dated 31.03.2024 and 30.06.2024 and, for those with a special accounting period, for the first two interim financial reports to be prepared following the first annual financial reports to which inflation accounting is applied.