ÇELEBİ AR19-270720 (1)

45 Çelebi Ground Handling Inc. 2019 Annual Report Key Audit Matter How the matter was addressed in the audit The Group has applied the intangible asset model within the scope of TFRS Interpretation 12 “Service Concession Agreements” in the related agreements because the Group has the right to demand compensation from the users for the infrastructure investment subject to the service concession agreement, and intangible assets arising from “Concession Rights” is recognised at the account of intangible assets. In addition, contracted maintenance or modernization obligations in the framework of service concession contracts are recognized in accordance with the Turkish Accounting Standard (“TAS”) 37 “Provisions, Contingent Liabilities and Contingent Assets”. In addition, the intangible assets from build-operate-transfer investments have been accounted under “Build-Operate- Transfer Investments” account As presented in Note 13, the net book value of “Concession Rights” accounted under intangible assets as of December 31, 2019 is TL 114.850.416 and net book value of “Build- operate-transfer investments” is TL 92.138.160, and as presented in Note 15, “Maintenance obligation liability” accounted under other current and non-current liabilities is TL 56.045.280. “Concession rights”, “Build-operate-transfer investments” and “Maintenance obligation liability” which are recognized within the scope of such agreements have been determined as key audit matter due to the complexity of judgements and assumptions included in such transactions. In addition, within the scope of the featured accounting mentioned above, we have questioned the appropriateness of the information contained in the consolidated financial statements and explanatory footnotes and the importance of the disclosed information for the readers of the financial statements. 4) Other Matters The consolidated financial statements of the Group for the period ended at December 31, 2018 were audited by another independent auditor and an unqualified opinion was expressed on those consolidated financial statements on March 8, 2019.