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 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish 68 Çelebi Ground Handling Inc. 2019 Annual Report Amendments to TAS 19 Plan Amendment, Curtailment or Settlement The amendments clarify that the past service cost (or of the gain or loss on settlement) is calculated by measuring the defined benefit liability (asset) using updated assumptions and comparing benefits offered and plan assets before and after the plan amendment (or curtailment or settlement) but ignoring the effect of the asset ceiling (that may arise when the defined benefit plan is in a surplus position). Annual Improvements to TFRS Standards 2015-2017 Cycle Annual Improvements to TFRS Standards 2015-2017 Cycle include amendments to TFRS 3 Business Combinations and TFRS 11 Joint Arrangements in when a party that participates in, but does not have joint control of, TAS 12 Income Taxes ; income tax consequences of dividends in profit or loss, and TAS 23 Borrowing Costs in capitalized borrowing costs. Other than TFRS 16, these standards, amendments and improvements have no impact on the consolidated financial position and performance of the Group. b) New and revised TFRSs in issue but not yet effective The Group has not yet adopted the following standards and amendments and interpretations to the existing standards: TFRS 17 Insurance Contracts Amendments to TFRS 3 Definition of a Business Amendments to TAS 1 and TAS 8 Definition of Material Amendments to TFRS 9, TAS 39 and TFRS 7 Interest Rate Benchmark Reform TFRS 17 Insurance Contracts TFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts. TFRS 17 supersedes TFRS 4 Insurance Contracts as of January 1, 2021. Amendments to TFRS 3 Definition of a Business The definition of “business” is important because the accounting for the acquisition of an activity and asset group varies depending on whether the group is a business or only an asset group. The definition of “business” in TFRS 3 Business Combinations standart has been amended. With this change: - By confirming that a business should include inputs and a process; clarified that the process should be essential and that the process and inputs should contribute significantly to the creation of outputs. - The definition of a business has been simplified by focusing on the definition of goods and services offered to customers and other income from ordinary activities. - An optional test has been added to facilitate the process of deciding whether a company acquired a business or a group of assets. Amendments to TAS 1 and TAS 8 Definition of Material The amendments in Definition of Material (Amendments to TAS 1 and TAS 8) clarify the definition of ‘material’ and align the definition used in the Conceptual Framework and the standards. Amendments to TFRS 9, TAS 39 and TFRS 7 Interest Rate Benchmark Reform The amendments clarify that entities would continue to apply certain hedge accounting requirements assuming that the interest rate benchmark on which the hedged cash flows and cash flows from the hedging instrument are based will not be altered as a result of interest rate benchmark reform. 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