On Dec. 8, TUR SEDDK published cir on statements' inflation factor.
TUR SEDDK issued cir 2023/30 on insurance sector's inflation accounting adjustment.
Main Points
The financial statements of (re-)insurance and pension companies dated Dec. 31, 2023, won't be subject to the inflation adjustment required within the scope of IAS 29.
The reason is that the Public Oversight Authority made an announcement on the adjustment of financial statements of independently audited companies for inflation.
It was stated that institutions authorized to regulate and audit in their fields may set different transition dates than those stipulated for the application of IAS 29 provisions.
Oversight institutions and organizations have freedom to apply inflation accounting.
Effectiveness
The circular enter into force on the date of its publication, on Dec. 8, 2023.
Mar. 2024 Update
On Mar. 11, 2024, TUR SEDDK issued cir 2024/10 on inflation accounting application.
Institutions or organizations authorized to regulate and supervise in their fields may determine different transition dates for the implementation of the provisions of IAS 29.
I.e, the Financial Reporting Standard for Large and Medium-Sized Enterprises, and they are given the freedom to apply inflation accounting; circular 2024/10 does so.
(Re-)insurance, pension companies, will switch to inflation accounting on Jan. 1, 2025.
The circular enters into force on the day of its publication, on Mar. 11, 2024.
Dec. 2024 Update
On Dec. 10, 2024, TUR IAC issued Circular 2024/32 on application of inflation accounting in the insurance sector, repealing Circular 2024/10 on the same topic.
Announcement on topic of Nov. 23, 2023 stated institutions/organizations authorized to regulate, audit may determine different transition dates than those proposed for application of provisions in TMS 29 or for Financial Reporting Standard for Large, SMEs.
The above-mentioned were granted freedom for application of inflation accounting.
It has now been decided insurance, reinsurance and pension companies will not apply inflation accounting in 2025; the circular enters into force on its publication date.
