Use

See Inflation Accounting for Asset Accounting (FI-AA).

Features

In Turkey, you can revaluate various assets (and their depreciation) for inflation. Revaluations are carried out monthly, quarterly, and annually, as follows:

It is common business practice to carry out adjustments on a monthly basis. These adjustments are for controlling purposes only and are calculated using provisional inflation indexes.

You adjust your assets for inflation quarterly for the purposes of income tax reporting. The inflation indexes for the quarter are published by the authorities, but are only provisional.

You adjust your assets for inflation at year-end using the definitive inflation index published by the authorities.

When you revaluate assets, you record the revaluation amounts in Asset Accounting (FI-AA) in the book depreciation area. In Financial Accounting (FI), you record them in the accounts listed under Account Determination , and offset them to a revaluation fund account. Occasionally, a company may decide to increase its share capital by transferring part of the revaluation fund to it . In subsequent years, you can also revaluate the revaluation fund, but using a different inflation rate.

In order to revaluate your assets, you use the Asset Revaluation (Inflation) program. When you create a company code using the template for Turkey, the system makes a number of Customizing settings that are used by this report, described in the following, which you can change or add to as required.

The law provides for the adjustment of assets in the following classes (for more information, see Asset Class ):