CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 62 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 TFRS 2 Classification and Measurement of Share-based Payment Transactions (Amendments) In December 2017, POA issued amendments to TFRS 2 Share-based Payment, clarifying how to account for certain types of share-based payment transactions. The amendments, provide requirements on the accounting for: a. the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments; b. share-based payment transactions with a net settlement feature for withholding tax obligations; and c. a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled. These amendments are applied for annual periods beginning on or after 1 January 2018. The amendments are not applicable for the Group and did not have an impact on the financial position or performance of the Group. TAS 40 Investment Property: Transfers of Investment Property (Amendments) In December 2017, POA issued amendments to TAS 40 ‘Investment Property ‘. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. These amendments are applied for annual periods beginning on or after 1 January 2018. The amendments are not applicable for the Group and did not have an impact on the financial position or performance of the Group. Annual Improvements to TFRSs - 2014-2016 Cycle In December 2017, POA issued Annual Improvements to TFRS Standards 2014-2016 Cycle, amending the following standards: - TAS 28 Investments in Associates and Joint Ventures: This amendment clarifies that the election to measure an investment in an associate or a joint venture held by, or indirectly through, a venture capital organisation or other qualifying entity at fair value through profit or loss applying TFRS 9 Financial Instruments is available for each associate or joint venture, at the initial recognition of the associate or joint venture. These amendments are applied for annual periods beginning on or after 1 January 2018. The amendments are not applicable for the Group and did not have an impact on the financial position or performance of the Group. ii) Standards issued but not yet effective and not early adopted Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the consolidated financial statements are as follows. The Group will make the necessary changes if not indicated otherwise, which will be affecting the consolidated financial statements and disclosures, when the new standards and interpretations become effective. TFRS 16 Leases In April 2018, POA has published a new standard, TFRS 16 “Leases”. This Standard replaces the existing TAS 17 “Leases” Standard, TFRIC 4 “Determining Whether an Arrangement Contains a Lease” Standard and TAS Interpretation 15 “Operating Leases - Incentives” for the accounting of leasing transactions and has resulted in amendments to TAS 40 “Investment Properties” Standard. TFRS 16 eliminates the dual-accounting model of leasing transactions that are the current application in terms of lessees that financial leasing transactions is follwing in balance sheet and liabilities related operational leasing is following in off-balance sheet. Instead, a single balance sheet-based accounting model is presented for all leases, similar to the current financial leasing accounting. For lessors, recognition is similar to existing practices. TFRS 16, is effective for annual periods beginning on or after 1 January 2019, with early application permitted. The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group. However, the explanation of preliminary analyses is as follows: The Group will prefer to use the exemption right for less stable asset leases with the term less than 12 months and the other contracts that are not covered by the exemption on 1 January 2019 by taking advantage of the transition options which are recognized by the simplified retrospective approach.