Inflation Accounting Application in Capital Market Instrument Issuance Applications in Light of the Recent Board Decision

The announcement (Announcement) made pursuant to the Capital Markets Board Decision dated 08.02.2024 and numbered 9/221 (Board Decision) was published in the Capital Markets Board Bulletin dated 08.02.2024 and numbered 2024/9. The Announcement includes explanations regarding the application of inflation accounting in capital market instrument issuance applications in light of the Board Decision. The significant issues in the Announcement are briefly summarized below:

• The sales period specified as January 1 - February 15 in Article 11/1 (a), (b) and (c) of the Communiqué on Prospectus and Issuance Document numbered II-5.1 (Communiqué) has been extended until March 1, 2024 for the year 2024. In this context, pursuant to Article 11/1 (ç) of the Communiqué, the provision regarding the submission of the latest audited financial statements as an annex to the prospectus, which is essential to be used in the following period, will not be applied for this sales period.
• The Announcement states that the prospectuses to be prepared for the initial public offering of the shares of non-publicly traded corporations and for the public offering of capital market instruments that do not grant shareholding rights shall include inflation-adjusted financial statements in order to enable comparison in accordance with the principles and deadlines set forth in Article 11 of the Communiqué.
• In addition, it is emphasized that the prospectuses to be prepared for the public offering of capital market instruments granting shareholding rights of publicly traded corporations will include inflation-adjusted comparative financial statements starting from the annual financial statements for the accounting period ending on 31.12.2023, in accordance with the principles and deadlines stipulated in Article 11 of the Communiqué.
• The Announcement states that as of the date of the Board Decision, capital increase applications to be made within the scope of Article 16 of the Equity Communiqué No. VII-128.1 will be based on the internal resources included in the inflation-adjusted financial statements.
• For capital market instrument issuance applications other than those mentioned above, inflation accounting will be applied starting from the annual financial statements of the accounting period ending on 31.12.2023 in accordance with the principles and periods specified in the relevant Communiqués.

Companies subject to special accounting period will adapt these disclosures according to their accounting periods.