Inflation accounting

What is inflation accounting?

Inflation accounting is the process of re-calculating the non-monetary items in the financial statements by multiplying the relevant amounts to be taken into account in the inflation adjustment by the adjustment factor in order to reflect their purchasing power at the date of the financial statements.

What is the importance of automation in inflation accounting?

Automating the inflation accounting-related calculations using the state-of-the-art tools will not only ensure standardization of the calculations to be made throughout the process for companies, but will also facilitate working life by minimizing the working time that may arise due to repetitive calculations.

Which companies should practice inflation accounting?

All companies incorporated in Turkey will apply inflation accounting following the relevant legislation.

What is IAS 29 Financial Reporting in Hyperinflationary Economies (TAS29)?

In April 2001, the International Accounting Standards Board adopted the IAS 29 Financial Reporting in Hyperinflationary Economies, which had originally been issued by the International Accounting Standards Committee in July 1989.

This standard went on to be published in the Turkish Official Gazette on December 31, 2005 issue number 26040 as "TAS 29 Financial Reporting in Hyperinflationary Economies" thereby coming into force and effect in Turkey as of this date.

What are the effects of inflation on profits?

What are some of the key issues with adjusting for inflation?

Companies operating in hyperinflationary economies are required to take certain preliminary steps before adjusting their financial statements according to IAS 29.