How Our Inflation Accounting Software Robot EMPRO Will Create Value for Your Business

EMPRO ensures efficient use of your time by accurately and reliably calculating the technical processes that companies may encounter in Inflation Accounting applications, within the framework of the Tax Procedure Law and International Financial Reporting Standards (IFRS).


12-2023 CPI

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Why You Need EMPRO Software?

EMPRO was developed by auditors to check inflation accounting calculations across different software platforms, and this flexibility makes it perfect for users who need to perform inflation accounting in their own companies.


The Key Features of TFRS 29 Calculations

EMPRO provides its users with inflation accounting calculations in accordance with the Turkish Financial Reporting Standards (TFRS), presenting all the necessary details in a comprehensive manner.

Deferred Tax

EMPRO calculates deferred tax effects arising from indexation differences determined by the user under Turkish Accounting Standards (TAS) applicable in economies deemed to have high inflation, according to Financial Reporting Standard TAS 29.

Uploading/Adding Corrected Receipts

EMPRO enables the correction and classification of accounting slips that arise as a result of TFRS financial accounts to be uploaded individually or collectively and has the capability to convert statements produced according to VUK to TFRS compliant financial statements.

Detailed Reporting

EMPRO provides you with the details of non-monetary items that require indexing in a fast, easy-to-read Excel report format.

Recording of Indexing Differences

EMPRO’s reports present indexation differences for the opening and current period separately and apply indexation differences automatically to the relevant line items in the accounts.

The Key Features of VUK Calculations

EMPRO provides its users with all the details pertaining to inflation accounting calculations that need to be conducted within the framework of the Tax Procedure Law (VUK).

Inventory Valuation

EMPRO, valuation methods related to inventory play a crucial role in the accurate and realistic preparation of businesses’ financial statements. Methods available with EMPRO include:

  1. Simple Average

  2. Inventory Turnover Rate

  3. Actual Cost

  4. Moving Weighted Average

Fixed Asset Valuation

EMPRO calculates companies’ fixed assets on your behalf in accordance with Tax Procedure Law (VUK) provisions based on the activation date, including various depreciation methods. Additionally, it ensures the reindexing of all fixed assets, calculated with continuous and temporary revaluation (Temporary 31-32, Supplementary 298/Ç), by purging them from inflation adjustment.

Close of businessman hand touch virtual chart on touch screen

EMPRO manages the end-to-end process, from cleansing, transforming, and loading data in accordance with Tax Procedure Law (VUK), to constructing a financial reporting interface tailored to the business needs for reporting. This process includes the requirements of IFRS 29 that are the subject of the report and ensures accurate positioning of visuals in the report.

Equity Valuation

EMPRO provides users with the option to independently select the status of all equity items against inflation adjustment, regardless of the chart of accounts, and does not index the following accounts:

  1. Revaluation of Monetary Position (MDV)
  2. Revaluation of Investments
  3. Cost Increase Fund
  4. Recorded Commodity Fund
  5. Asset Peace Fund
  6. Capital Exchange Rate Difference Fund

What Are Some of The Issues That Arise When Adjusting for Inflation?

Before applying TAS 29 in their financial statements, there are some preliminary steps that companies operating in a highly inflationary economies need to take:

  1. Prepare their financial statements in accordance with the applicable financial reporting framework i.e., VUK, TAS/TFRS or Financial Reporting Standards for Large or Medium Sized Entities (FRS for LMSE).
  2. Select the accounting periods for which TAS 29 will be applied.
  3. Divide financial statement items into monetary and non-monetary items.
  4. Identify branches, subsidiaries, business partnerships and subsidiaries whose financial statements need to be included in the indexing process.
  5. Determine whether inflation accounting has been applied in previous years and accordingly, choose a date for starting the indexing process.
  6. Choose the indices to be used in the indexing process.
  7. Calculate the correction coefficients to be used.