In the 2024 2nd term Inflation Accounting, will the amounts in the 570/580 accounts from the 31.12.2023 period be subject to valuation?
Inflation adjustment will be made for the 570-580 accounts from the end of 2023.
The inflation adjustment of the 570 account from 2023 will create an expense effect, reduce the profit of the business and result in less tax payment, if the company is in loss, it will increase the amount of loss. Again, the inflation adjustment of the 580 account from 2023 will create an income effect, increase the profit of the business and result in more tax payment, if the company is in loss, it will reduce the amount of loss. In short, businesses that are profitable at the end of 2023 and have high equity will pay less tax, and in the opposite case, those that have lost their equity and are in high loss will pay high tax.
Source: Istanbul Chamber of Certified Public Accountants
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