POA Issued an Announcement on Accounting for Currency-Price Protected TL Deposit Accounts with Currency-Gold Conversion
With the announcement made by the Public Oversight, Accounting and Auditing Standards Authority (POA) on 01/03/2022, explanations were made on how to account for FX/Gold Conversion Currency/Price Protected TL Deposit Accounts under TFRS and BOBİ FRS.
For entities that have FX/Gold Conversion Currency/Price Protected TL deposits and participation accounts and apply TFRS, FVTPL will be measured at fair value through profit or loss in accordance with TFRS 9. Accordingly, GCCI will be presented as “Financial Investments” in the Statement of Financial Position and changes in the fair value of GCCI at the end of the reporting period will be reflected in “Income/Expenses from Investing Activities” in the Statement of Profit or Loss and Other Comprehensive Income.
In accordance with BOBİ FRS, KKMH is required to be classified as “other financial instruments” and measured at fair value through profit or loss. In this context, KKMH will be presented as “Financial Investments” in the Statement of Financial Position and changes in the fair value of KKMH at the end of the reporting period will be presented in the Statement of Profit or Loss under “Financial Investments Value Increase Gains or Financial Investments Value Decrease Losses”.
You can access the relevant announcement of the Public Oversight Accounting and Auditing Standards Authority here.
