Türkiye considers inflation accounting rule delay - report
Türkiye is re-evaluating its decision on whether to discontinue an accounting regulation that mandates companies to modify their financial statements to account for high inflation rates, reported Bloomberg, citing sources.
The government initially intended to incorporate a provision in an omnibus bill presented to parliament last week.
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This provision was meant to delay the implementation of a particular practice for the accounting periods spanning 2025 to 2027.
However, the government ultimately chose not to proceed with this plan, stated the sources.
The sources added that the talks about postponing the implementation of the inflation accounting rule are ongoing, with a conclusive decision expected following additional assessments.
In 2024, Türkiye implemented inflation accounting for non-financial companies following a three-year cumulative increase in domestic producer prices that surpassed 100%.
This accounting practice adjusts companies’ financial statements to accurately represent shifts in purchasing power and profitability due to inflation and impacts the tax treatment of assets of non-monetary nature.
According to sources, the provision might still be incorporated during the committee review or general assembly phases of the bill, or it could be introduced later as an independent proposal.
Local media outlet Ekonomi initially disclosed the government’s contemplation of this postponement.
In 2024, Türkiye vice president Cevdet Yilmaz told Bloomberg that the government plans to evaluate the effect of the regulation on investment and determine its application by 2025.
