ÇELEBİ AR19-270720 (1)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2019 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) 63 Çelebi Ground Handling Inc. 2019 Annual Report Functional and Presentation Currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates. The consolidated financial statements are presented in TL, which are the functional currency of the Çelebi Hava and the presentation currency of the Group. As of December 31, 2019, the currency of Group’s entities are as below. Company Currency CGHH Hungarian Forint (HUF) Celebi Delhi Cargo Indian Rupee (INR) CASI Indian Rupee (INR) Celebi Nas Indian Rupee (INR) Çelebi Kargo Turkish Lira (TL) Celebi Cargo Euro (EUR) DASPL Indian Rupee (INR) Celebi GH India Private Limited Indian Rupee (INR) KSU Indian Rupee (INR) Çelebi Tanzania Tanzanian Shilling (TZS) Going Concern The Group prepared its consolidated financial statements in accordance with the going concern assumption. 2.1.2 Amendments in Turkish Financial Reporting Standards (TFRS) a) Amendments that are mandatorily effective from 2019 year TFRS 16 Leases TFRS Interpretation 23 Uncertainty over Income Tax Treatments Amendments to TAS 28 Long‑term Interests in Associates and Joint Ventures Amendments to TAS 19 Plan Amendment, Curtailment or Settlement Standards 2015-2017 Cycle Amendments to TFRS 3, TFRS 11 , TAS 12 and TAS 23 TFRS 16 Leases General impact of application of TFRS 16 Leases TFRS 16 provides a comprehensive model for the identification of lease arrangements and their treatment in the financial statements for both lessors and lessees. TFRS 16 supersedes the current lease guidance including TAS 17 Leases and the related Interpretations for accounting periods beginning on or after January 1, 2019. The date of initial application of TFRS 16 for the Group is January 1, 2019 retrospectively taking into account the cumulative effect in the financial statements. In contrast to lessee accounting, TFRS 16 substantially carries forward the lessor accounting requirements in TAS 17.