CELEBİ 2021 ANNUAL REPORT

83 Çelebi Ground Handling Inc. 2022 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2022 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) Restatement of financial statements during periods of high inflation POA made an announcement on 20 January 2022 regarding the application of TAS 29 “Financial Reporting in Hyperinflationary Economies” (“TAS 29”) for entities adopting Turkish Financial Reporting Standards (“TFRS”) for the year ended 31 December 2021. The announcement stated that, entities that apply TFRS should not adjust their financial statements in accordance with TAS 29 for the year ended 31 December 2021. As of the date of this report, POA has not made any further announcements regarding the scope and application of TAS 29. As a result, no inflation adjustment was made to the accompanying consolidated financial statements as of 31 December 2022 in accordance with TAS 29. 2.1.2 New and Amended Turkish Financial Reporting Standards a) Amendments that are mandatorily effective from 2022 Amendments to TFRS 3 Reference to the Conceptual Framework Amendments to TAS 16 Property, Plant and Equipment - Proceeds before Intended Use Amendments to TAS 37 Onerous Contracts - Cost of Fulfilling a Contract Annual Improvements to TFRS Standards 2018-2020 Amendments to TFRS 1, TFRS 9 and TAS 41 Amendments to TFRS 16 COVID-19 Related Rent Concessions beyond 30 June 2021 Amendments to TFRS 3 Reference to the Conceptual Framework The amendments update an outdated reference to the Conceptual Framework in TFRS 3 without significantly changing the requirements in the standard. The amendments are effective for annual periods beginning on or after 1 January 2022. Early application is permitted if an entity also applies all other updated references (published together with the updated Conceptual Framework ) at the same time or earlier. Amendments to TAS 16 Property, Plant and Equipment - Proceeds before Intended Use The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the cost of producing those items, in profit or loss. The amendments are effective for annual periods beginning on or after 1 January 2022. Early application is permitted. Amendments to TAS 37 Onerous Contracts - Cost of Fulfilling a Contract The amendments specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract or an allocation of other costs that relate directly to fulfilling contracts. The amendments published today are effective for annual periods beginning on or after 1 January 2022. Early application is permitted. Annual Improvements to TFRS Standards 2018-2020 Cycle Amendments to TFRS 1 First time adoption of Turkish Financial Reporting Standards The amendment permits a subsidiary that applies paragraph D16(a) of TFRS 1 to measure cumulative translation differences using the amounts reported by its parent, based on the parent’s date of transition to TFRSs.