Inflation Accounting Application

Dear Members,

Inquiries from our members regarding whether "expenses arising from leases accrued in 2020 and 2021, depreciation, and personnel expenses" should be considered at inflation-adjusted values or nominal values in the calculation of insolvency, within the scope of Provisional Article 1 of the Communiqué on the Procedures and Principles Regarding the Implementation of Article 376 of the Turkish Commercial Code No. 6102, have been conveyed to the Ministry of Trade. In the attached response from the Ministry of Trade (General Directorate of Domestic Trade), it has been assessed that companies obligated to apply inflation adjustments may consider financial statements adjusted for inflation in calculations related to capital loss or insolvency.