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 70 Çelebi Ground Handling Inc. 2019 Annual Report d) The Group recognizes the transactions of acquisitions and sales of shares of the subsidiaries, those are controlled by the Group, realized with the non-controlling interest as transactions of the Group with equity holders. Therefore, in transactions of additional share acquisition from non-controlling interest, the difference between the acquisition cost and the share of net assets of the additional shares acquired and in transactions of sale of shares to non-controlling interest, the difference between the consideration received and the share of net assets of the shares sold is recognised in equity. e) Joint venture and the associate of the Group are accounted by using the equity method. The direct and indirect ownership interests held by the Group in its joint venture and associate are provided below, the direct and indirect ownership interest is equal with the proportion of effective interest. Joint venture Ownership rate (%) December 31, 2019 December 31, 2018 Celebi Nas 57,00 57,00 Associate Ownership rate (%) December 31, 2019 December 31, 2018 DASPL 24,99 24,99 f) Financial assets in which the Group has ownership interests below 20%, or over 20% but which the Group does not exercise a significant influence or which are not significant to the consolidated financial statements are classified as available- for-sale financial assets in the consolidated financial statements. Available-for-sale financial assets that do not have quoted market prices in active markets and whose fair values cannot be reliably measured are carried at cost less any accumulated impairment loss in the consolidated financial statements. Financial investment Ownership rate (%) December 31, 2019 December 31, 2018 Celebi Spain 100,00 100,00 Celebi Tanzania 100,00 - 2.2. Changes in accounting policies 2.2.1 Comparative information The current period consolidated financial statements of the Group include comparative financial information to enable the determination of the trends in financial position and performance. Comparative figures are reclassified, where necessary, to conform to the changes in the presentation of the current period consolidated financial statements. The Group presented the consolidated statement of financial position as of December 31, 2019 comparatively with the consolidated statement of financial position as of December 31, 2018, presented the consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of cash flows and consolidated statement of changes in equity for the period ended December 31, 2019 comparatively with the consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of cash flows and consolidated statement of changes in equity for the period ended December 31, 2018. In the consolidated statement of profit or loss on December 31, 2018, according to the rates determined in the concession agreements for Celebi Delhi Cargo and CASI, the Group paid the royalty rights amounting to TL 148.740.434, which is offset under revenue from the operating of the cargo terminal and the ground handling services provided from the relevant airports has classified it to the cost of sales. 2.3 Changes in significant accounting policy and estimations 2.3.1 Changes in significant accounting policy Significant changes in accounting policies are applied retrospectively and prior period financial statements are restated. The Group has made some changes in its accounting policies in the current year due to the effects of changes in the standards. The Group has classified the concession rights to the cost of sales within the scope of TFRS 15 Revenue from Contracts with Customers.