Public Oversight Authority Publishes Announcement on Inflation Adjustment
According to the announcement made by the Public Oversight, Accounting and Auditing Standards Authority (POA) on 20/01/2022, companies applying TFRS and BOBİ FRS will not make inflation adjustment in their financial statements for 2021.
Paragraph 3 of IAS 29 states that an economy has hyperinflation when the cumulative inflation rate for the last three years approaches or exceeds 100%.
According to the CPI rates announced by the Turkish Statistical Institute, since the cumulative change in the general purchasing power of the last three years has been realized as 74.41%, enterprises applying TFRS do not need to make any adjustments within the scope of TAS 29 in their financial statements for 2021.
The Public Oversight Accounting and Auditing Standards Authority will amend the relevant provisions in Section 25 Financial Reporting in Hyperinflationary Economies of the Financial Reporting Standard for Large and Medium-Sized Enterprises (BOBİ FRS) to be compatible with TFRS, and the application specified for TFRS will be taken as basis for enterprises applying BOBİ FRS.
You can access the relevant announcement of the Public Oversight Accounting and Auditing Standards Authority here.
