ÇHS AR21-ENG-030622

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) 67 Çelebi Ground Handling Inc. 2021 Annual Report Amendments to TAS 8 Definition of Accounting Estimates With this amendment, the definition of “a change in accounting estimates” has been replaced with the definition of “an accounting estimate”, sample and explanatory paragraphs regarding estimates have been added, and the differences between application of an estimate prospectively and correction of errors retrospectively have been clarified. Amendments to TAS 8 are effective for annual reporting periods beginning on or after 1 January 2023 and earlier application is permitted. Amendments to TAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction The amendments clarify that the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition. Amendments to TAS 12 are effective for annual reporting periods beginning on or after 1 January 2023 and earlier application is permitted. The Group evaluates the effects of these standards, amendments and improvements on the consolidated financial statements. 2.1.3 Financial statements of subsidiaries and joint ventures operating in foreign countries Financial statements of subsidiaries and joint ventures operating in foreign countries are prepared according to the legislation of the country in which they operate, and adjusted to the Turkish Financial Reporting Standards to reflect the proper presentation and content. Foreign joint ventures’ assets and liabilities are translated into TL with the foreign exchange rate at the consolidated statement of financial position date, and income and expenses are translated into Turkish Lira using the average exchange rate. Exchange differences arising from the use of closing and average exchange rates are followed under the foreign currency translation differences account in shareholders’ equity. 2.1.4 Basis of Consolidation a) The consolidated financial statements include the accounts of the parent company, Çelebi Hava, its’ Subsidiaries, Joint Venture and Associate (collectively referred to as the “Group”) on the basis set out in sections (b), to (f) below. The financial statements of the companies included in the scope of consolidation have been prepared as of the date of the consolidated financial statements and have been prepared in accordance with TFRS applying uniform accounting policies and presentation. The operating results of Subsidiaries, Joint Venture and Associate are included or excluded from their effective dates of acquisition or disposal, respectively. b) The consolidated financial statements include the financial statements of the companies controlled by the Company and its subsidiaries. Control is provided by the Company’s fulfillment of the following conditions: - having power over the invested company/asset; - being open to or entitled to variable returns from the invested company/asset and - ability to use power to have an impact on returns. If a situation or event occurs that may cause any change in at least one of the criteria listed above, the Company reassesses whether it has control over its investment.