CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 104 Çelebi Ground Handling 2018 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish The details of cumulative temporary differences and the related deferred tax assets and liabilities calculated with currently enacted tax rates as at December 31, 2018 and December 31, 2017 are as follows: Deferred tax assets/ Deferred tax base (liabilities) December 31, December 31, December 31, December 31, 2018 2017 2018 2017 Deferred tax assets Personnel bonus accrual (4.225.814) (4.001.712) 929.679 800.342 Accrued sales commissions (8.183.855) (5.215.095) 1.800.448 1.043.019 Provision for employment termination benefits (23.600.610) (19.443.266) 4.720.122 3.888.653 Provision for operational leasing equalization (144.298.040) (104.553.193) 50.422.062 36.183.769 Provision for unused vacation rights (3.899.340) (3.243.079) 857.855 648.616 Provision for litigation and indemnity (4.529.700) (3.909.080) 996.534 781.816 Adjustments related to property plant and equipment and intangible assets (66.578.499) (46.998.133) 23.265.191 16.265.114 Investment incentives (110.112.709) - 24.224.796 - Other (3.776.673) (4.287.865) 1.671312 1.927.768 (369.205.240) (191.651.423) 108.887.999 61.539.097 Net off (10.348.195) (7.496.093) Deferred tax assets 98.539.804 54.043.004 Deferred tax liabilities Adjustments related to property plant and equipment and intangible assets 75.686.003 68.452.540 (13.744.093) (12.696.468) Income accrual 9.335.660 - (2.053.847) - Other 2.135.949 2.232.181 (427.190) (446.436) 87.157.612 70.684.721 (16.225.130) (13.142.904) Net off 10.348.195 7.496.093 Deferred tax liabilities (5.876.935) (5.646.811) Deferred tax assets, net 92.662.869 48.396.193 The table of deferred tax movement is as follows: January 1 - January 1 - December 31, 2018 December 31, 2017 January 1, 2018 48.396.193 36.531.535 Foreign currency translation differences 14.939.749 6.252.594 Deferred tax income/(expenses) fort he current period 28.004.641 4.932.650 Recognized in other comprehensive income 1.322.286 679.414 December 31, 2018 92.662.869 48.396.193