Application of Hyperinflation and Inflation Accounting by a Turkish Subsidiary
First written in FY2023-Q3. 1 of 4 entries say "Materialised", first in FY2024. Latest entry: FY2026.
Daio Paper moved to the "Worse" side of this theme in 2024.
The whole theme swung hardest in 2024: 2 of 14 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「As the transfer of all shares in Elier International Turkey Kişisel Bakım Ürünleri Üretim A.Ş. was completed on 27 June 2025, the company has excluded it from the scope of consolidation.」
The transfer of all shares in the Turkish subsidiary was completed, reducing the risk within the scope of consolidation of direct exposure to hyperinflation accounting and the inflationary environment. - FY2025WorsenedAnnual report
「Hyperinflation adjustment △3,305」
The adjustment related to hyperinflation accounting for the Turkish subsidiary increased from ¥1,044 million in the previous fiscal year to ¥3,305 million, expanding the financial impact on retained earnings. - FY2024MaterialisedAnnual report
「Hyperinflation adjustment △1,044」
As the cumulative effect of applying hyperinflation accounting to the Turkish subsidiary, the company recorded an adjustment of ¥1,044 million to retained earnings in the current fiscal year. The accounting and financial impact of the hyperinflationary environment continues. - FY2023-Q3First statedAnnual report
「As Turkey's cumulative inflation rate over 3 years exceeded 100%, the group has consolidated the Turkish subsidiary's financial statements from the beginning of the second quarter of the current consolidated fiscal year after making adjustments in accordance with IAS 29, “Financial Reporting in Hyperinflationary Economies.” As a result, retained earnings at the beginning of the second quarter decreased by ¥423 million as the cumulative effect of applying the accounting standard. In addition, the impact of inflation on the net monetary position during the nine-month consolidated period is presented under “Non-operating expenses” as “Loss on net monetary position.”」
Because Turkey's cumulative inflation rate over 3 years exceeded 100%, hyperinflation accounting was applied, reducing retained earnings at the beginning of the period by ¥423 million. During the nine-month period, the company recorded a ¥1,129 million loss on its net monetary position.