Public Oversight Authority Announcement on the Adjustment for Inflation of the Financial Statements of Companies Subject to Independent Audit

Under provisional article 33 added to the Tax Procedure Law on 29 January 2022, the financial statements dated 31/12/2023 prepared under tax legislation will be adjusted for inflation regardless of whether the conditions for inflation adjustment have been met. To ensure consistency of practice in this context, the financial statements of entities applying Turkish Financial Reporting Standards and the Financial Reporting Standard for Large and Medium-sized Entities (BOBİ FRS (Turkish GAAP for SMEs)) for annual reporting periods ending on or after 31 December 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" and "BOBİ FRS Section 25 Financial Reporting in Hyperinflationary Economies".