According to the consolidated financial statements belonging to the accounting period of 01.01.2023-31.12.2023 prepared in accordance with the International Financial Reporting Standards ("IFRS") and audited by PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş., net profit for the period is 162,998,000,000 TRY.
In accordance with the temporary Article 33 of the Tax Procedure Law ("TPL"), inflation accounting was applied to the records dated 31.12.2023. Prior to the application of inflation accounting, the legal records, which was prepared under the TPL, show a net period profit of 11,884,059,676 TL and past years' losses of 41,585,120,658 TL.
Pursuant to the Capital Markets Board's ("CMB") decision numbered 14/382 dated 07.03.2024 for the profit distribution table, the profit and losses for 2023 presented for comparison should be based on the amounts before inflation adjustment. Due to the net profit before inflation accounting being lower than the accumulated past years' losses in our records, there is no profit available for distribution according to the legal records.
In line with the same decision by the CMB, previous years' losses due to inflation adjustment differences in both IFRS and TPL based financial statements are required to be presented to the General Assembly after offsetting the index differences. Given that our Incorporation prepares IFRS tables in USD, inflation accounting was not applied to these tables. Additionally, in our TPL records, no offset transactions occurred within the equity accounts.
Due to CMB decision stated above as there will not be any distributable profit (according to the legal records), the net profit of 162,998,000,000 TRY (according to IFRS) will be transferred to the previous years' profit account. Consequently, the Board of Directors' proposal of transferring the net profit of 162,998,000,000 TRY (according to IFRS) to the previous years' profit account was approved at the 2023 Ordinary General Assembly Meeting.