Matters to Consider Prior to Inflation Accounting

Hello,

Inflation accounting will be applied during the 2023 fiscal year (profit/loss will not be affected, and there will be no tax impact). Inflation adjustment will be performed for many items listed in the trial balance. To prevent additional workload, it is advisable to perform the following procedures before the month is closed:

- Property, Plant, and Equipment (PPE): PPE items that are no longer physically present in the company can be removed from the records by invoicing them to the company shareholder at a reasonable value for:

• lost or scrapped items

• personal use

• obsolete and unused items acquired long ago

- Inventories: If there are stagnant inventories, they should be expensed so that only active inventories remain in the records.

- Settlement of advance accounts, both given and received advances.

- Settlement of prepaid expense or income accrual accounts related to future periods.