The business world is demanding the elimination of inflation accounting.

Business World Wants the Abolition of Inflation Accounting

The business world in Turkey is calling for the abolition of inflation accounting as the year comes to a close. It is stated as a common view among financial advisors and businesses that this practice negatively impacts their operations under current conditions.

What Was the Purpose of Introducing Inflation Accounting?

During periods of high inflation, it is necessary to adjust assets, liabilities, income, and expenses for the effects of inflation to ensure the accuracy of financial statements. However, a decision was made in 2023 to reintroduce this practice starting in 2024.

Business World Expresses Its Expectations

The President of the Turkish Union of Accountants and Financial Advisors (TÜRMOB) Irfan Hüseyin Yıldız stated that there is significant public expectation for the abolition of inflation accounting. Yıldız pointed out that this practice leads to higher tax payments for some businesses.

Views from İTO and SMEs

The President of the Istanbul Chamber of Commerce (İTO) Şekib Avdagiç stated that inflation accounting creates a significant burden for the business world and that its abolition would reduce operational load. Avdagiç emphasized that SMEs are at risk of making mistakes during this process.

Critiques from MÜSİAD

The President of the Independent Industrialists and Businessmen Association (MÜSİAD) Burhan Özdemir expressed that inflation accounting periods lead to increased costs and greater uncertainties. Özdemir advocated for the development of a simpler model for SMEs.

Voices from the Real Sector

The President of the Ankara Young Businessmen's Association (ANGİAD) Ertuğrul Onat drew attention to the negative effects of inflation accounting on firms with debt-heavy growth. Onat emphasized that businesses are constantly faced with a tax burden due to this practice.

In Conclusion

The real sector believes that abolishing inflation accounting will strengthen economic balance. It is emphasized that businesses should operate in a healthier investment environment.