Can 502 Account be transferred to 570 Account?
It is not possible to transfer 502 account to 570 account. Inflation adjustment differences of 502 account and other equity accounts can be offset with the previous year loss account at the end of 2023, if any.
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Tax Procedure Law 555 Communiqué;
Previous years profit or loss resulting from the correction of the balance sheet at the end of 2023 accounting period
ARTICLE 41- (1) Previous years profit or loss resulting from the correction of the balance sheet at the end of 2023 accounting period will continue to be monitored in the sub-account of Previous Years Profits/Losses Account where it is recorded and will be subject to correction process in the following periods according to paragraph (A) of Article 298 of Law No. 213 and the principles included in this Communiqué.
(2) Pursuant to the provision in subparagraph (5) of paragraph (A) of Article 298 of Law No. 213, inflation differences pertaining to equity items may be offset against the previous year losses resulting from correction or added to the capital by corporate taxpayers, and these transactions will not be considered as profit distribution.
Source: Istanbul Chamber of Certified Public Accountants, Tax Procedure Law 555 Communiqué
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