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Turkey’s parliament approved a law on Wednesday to drop a requirement for companies to produce inflation-adjusted accounts for the 2025, 2026 and 2027 financial years.
Countries sometimes employ inflation accounting methods to help provide a clearer picture of economic conditions during periods of high inflation.
Turkey decided in 2023 to introduce such measures from end-2023 to 2026. That came after Turkish inflation soared above 85 per cent in 2022 following big cuts in interest rates that sparked a currency crash.
The Regulation
According to the regulation adopted by parliament on Wednesday, seen by Reuters, Turkish companies’ accounts will not be subject to inflation adjustment for the 2025, 2026 and 2027 financial years. The regulation also gives the president the authority to extend this period for another three years.
Turkey’s BDDK banking watchdog said this week it had decided that banks, financial leasing, factoring, financing, savings financing and asset management companies would not apply inflation accounting.
Turkey’s annual inflation was 31.07 per cent in November, the lowest in four years.
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