Firstly, the transactions made until 2023 will be indexed within the framework of inflation and indexation rates announced by TURKSTAT, the statistical institution of the state. The items to be indexed are only balance sheet items. No adjustment will be made for income statement items. Adjustments made in the first year, i.e. 2023, will be associated with retained earnings and losses, and after 2024, inflation adjustments will be made every quarter and these adjustments will be reflected in the income statement. Balance sheet items that will be subject to restatement are non-monetary items.
For example, positions such as cash and cash equivalents, trade receivables, trade payables, trade payables, loans, tax payables are considered as monetary items and will not be subject to any inflation adjustment. However, expenses for the coming months and years, income for the coming months and years, fixed assets, construction in progress, capital, profit reserves, inventories, advances given and received for the purchase of goods will be subject to restatement using the indexation method. In Turkey, companies preparing their financial statements in accordance with IFRS will also be subject to valuation and disaggregation of income statement items in their financial statements.