The Ministry of Commerce made adjustments to the Inflation Adjustment application

The “Communiqué on Financial Statements to be Taken as Basis in Companies Applying Inflation Adjustment” prepared by the Ministry of Commerce came into force after being published in the Official Gazette. The Communiqué aimed to determine the financial statements to be taken as basis by the general assembly and management body regarding the inflation adjustment to be applied in 2023 and subsequent accounting periods.

Inflation-adjusted financial statements prepared in accordance with Article 88 of the law by companies that must prepare their financial statements in accordance with the accounting standards determined by the Public Oversight, Accounting and Auditing Standards Authority will be taken as basis.

SEPARATE APPLICATION FOR COMPANIES OUT OF THE SCOPE

In companies outside this scope, financial statements with inflation correction applied and financial statements without inflation correction will be taken into consideration together in accordance with the provisions of the temporary article 33 of the Tax Procedure Law No. 213 and the Tax Procedure Law General Communiqué (Sequence No: 555) for the accounting period of 2023.

In this context, inflation-corrected financial statements will be taken as basis in determining dividend distribution from the remaining values ​​after deducting losses from free reserve funds and other distributable resources, capital increase and decrease, merger, division, type change transactions, capital loss and insolvency situations. Without prejudice to the provisions of paragraph 3, the net profit for the period is taken as basis according to the law or the company agreement; Financial statements without inflation adjustment will be used in the calculations regarding profit and gain share distributions, reserve funds, payments to dividend holders and dividend advances distributed during the period.

In the evaluations to be made regarding the capital of the company, the capital amount registered in the trade registry will be the basis.

Positive differences in capital adjustment resulting from inflation adjustment, positive differences related to other equity items and the excess of internal resources other than these, losses and negative differences, including losses arising from inflation adjustment, can be added to the capital within the scope of Article 462 of the Turkish Commercial Code.

Negative capital adjustment differences arising from inflation adjustment and other negative differences arising from inflation adjustment can be offset by capital reduction or positive differences or other internal resources, based on the decision to be taken at the general assembly.

In the decisions to be taken in accordance with the provisions of the Communiqué, the relevant legislative provisions regarding the tax liabilities of the company and those who will receive a share of the profit will be reserved.