ISTANBUL, Oct 25 (Reuters) - Turkish companies' end-2023 balance sheets will be inflation-adjusted, with inflation adjustments expected to continue next year until 2026, based on inflation forecasts, the Treasury said in written answers to questions from Reuters.
The move comes after Turkish inflation soared above 85% last year after an aggressive rate-cutting cycle sparked a currency crash in late 2021. Inflation subsequently declined but rose again in recent months to stand at 61.5% in September.
The Treasury said profit or loss resulting from inflation adjustments in end-2023 balance sheets will not affect companies' 2023 tax bases but may affect them in subsequent years. (Reporting by Ebru Tuncay and Birsen Altayli Writing by Daren Butler Editing by Helen Popper)
