CELEBİ 2021 ANNUAL REPORT

97 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.) (f) Investments made in the framework of concession arrangements in scope of TFRIC 12 Celebi Delhi Cargo, subsidiary of the Group resident in India, has signed a concession arrangement with Delhi International Airport Private Limited (“DIAL”) on 6 May 2009 in order to operate in development, modernization, financing and management for 25 years of current cargo terminal in the airport located in New Delhi city of India. Investment expenditures made by the Group within scope of aforementioned arrangement and concession arrangement signed by Çelebi Nas, which is a joint venture of the Group subject to joint control and resident in India, on 8 April 2015, are recognized in accordance with International Financial Reporting Interpretations Committee 12 (“TFRIC 12”) Service Concession Arrangements. Preparation of the consolidated financial statements in accordance with TFRS requires the management to make decisions, estimations and assumptions affecting the implementation of policies and amounts of assets, liabilities, income and expense which are reported. Actual results may differ from those estimates. Estimations and assumptions forming a basis for estimations are continuously reviewed. Updates made in accounting estimates are recorded in the period of update and following periods affected from the aforementioned updates. Information on significant decisions applied to accounting policies which have the most significant impact on amounts recorded in consolidated financial statements is explained in the following notes: Note 2.5 (f) - Application of profit margin to construction costs made in scope of TFRIC 12 “Service Concession Arrangements” Information on estimates having significant impact on amounts recorded in consolidated financial statements is explained in the notes below: Note 11 - Property, plant and equipment Note 12 - Right-of-use assets Note 13 - Intangible assets Note 14 - Provision for employee benefits Note 29 - Tax assets and liabilities Note 31 - Related party disclosures NOTE 3 - SEGMENT REPORTING Management has determined the operating segments based on the reports reviewed by the Company’s senior management and effective in making strategic decisions. Management evaluates the Group’s performance as operating segments, and Ground handling services and Cargo and Warehouse services are evaluated according to their activity segments. The management monitors the performance of the operating segments with the profit before interest tax and depreciation (“EBITDA”), which is the amount after deducting the expense equalization amount, the effect of TFRIC 12, severance pay and leave provisions, which do not create a cash movement related to operational leases from the profit before interest tax and depreciation.