What is IAS 29 Financial Reporting in Hyperinflationary Economies (TAS29)?
This standard went on to be published in the Turkish Official Gazette on December 31, 2005 issue number 26040 as "TAS 29 Financial Reporting in Hyperinflationary Economies" thereby coming into force and effect in Turkey as of this date.
TAS 29 provides guidance for those who prepare financial statements (TAS 29.1) to be applied to all core financial statements, including consolidated financial statements, of businesses whose functional currency is the currency of a hyperinflationary economy.
In addition to TAS 29, “IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies” was first published in the Turkish Official Gazette on June 15, 2007 issue number 26553 to be applied for accounting periods beginning after December 31, 2006. The Restatement Approach was updated through Communiqué no. 71 published in the Turkish Official Gazette on August 13, 2008 issue number 26966 in order to ensure alignment with the International Financial Reporting Standards.
The above amendment is a requirement of the newly issued IAS 1 and is effective for accounting periods from December 31, 2008 onwards. It was also possible to apply the new IAS 1 ahead of this date in which case the amendment was effective for accounting periods beginning after December 31, 2007.
Inflation adjustment is also regulated by the "Financial Reporting Standards for Large and Medium Sized Enterprises (LME-FRS) " under the section entitled "Section 25 Financial Reporting in Hyperinflationary Economies".