ÇHS AR21-ENG-030622

45 Çelebi Ground Handling Inc. 2021 Annual Report Key Audit Matter How the Matter was Addressed in the Audit Functional Currency Change As detailed in Note 2.1.1., in the current period, the Group changed the functional currency of Çelebi Hava Servis A.Ş., which provides services to domestic and foreign airlines and private cargo companies in the field of ground handling, cargo and warehouse services, from Turkish Lira to Euro. As of 1 January 2021, all forward transactions have been accounted for in Euro, which is determined as the change date of the financial statements in accordance with the provisions of the TAS 21 Effects of Changes in Exchange Rates section “Change in the functional currency”. While making the this change, the Group management; basically took into account the increase in the share of the services it provides to foreign airlines in its operations in Turkey, and the significant increase in the impact of the Euro on operations as a result of the long-term lease agreements concluded with airport operators in Euro. Since the effect of the amount of the functional currency change is material to the consolidated financial statements, this matter has been determined as a key audit matter. The audit procedures applied including but not limited to the following are: Understanding the Group’s financial reporting process, including the functional currency changes and similar evaluations, and evaluating the internal control structure, The analysis and calculations of the change application made within the framework of TAS 21 Effects of Exchange Rate Changes were taken from the Group management, the appropriateness of the analysis and calculations were evaluated within the framework of the “Change in the functional currency” clauses and tested within the framework of the recalculation method. The data used in these calculations were compared with the current exchange rate information and audited financial data, and the mathematical accuracy has been tested. Testing the explanations included in the notes to the consolidated financial statements regarding the application of TAS 21 Change in Currency - Change in the functional currency and evaluating the adequacy of the information included in these notes according to the relevant rules.