ÇELEBİ HAVA SERVİSİ ANNUAL REPORT 2024

70 Çelebi Ground Handling 2024 Annual Report 4) Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How the Matter Was Addressed in the Audit Recognition of Right-of-Use Assets and Lease Liabilities and Presentation in the Consolidated Financial Statements TFRS 16 provides a lessee accounting model based on specific measurement methods. In this context, it requires the recognition of assets and liabilities. The lessee recognizes a right-of-use asset, representing the right to use the leased underlying asset, and a lease liability, representing the obligation to make lease payments. The Group has various lease agreements for land and buildings, machinery, equipment, and vehicles. As of December 31, 2024, a right-of-use asset of 2.419.665.349 TL is recorded in the consolidated statement of financial position. The share of right-of-use assets within non- current assets is 21%. Based on the lease agreements, the Group has recognized lease liabilities of 3.096.211.615 TL as of December 31, 2024. The amounts recognized as a result of applying TFRS 16 are material to the consolidated financial statements. Additionally, the calculation of right-of-use assets and related lease liabilities involves significant management estimates and assumptions. A significant portion of these assumptions includes the interest rate used to discount cash flows and the evaluation of extension and early termination options for the lease term. Considering these factors, the impact of the application of TFRS 16 on the consolidated financial statements and the related disclosures in the notes to the consolidated financial statements has been identified as a significant matter in our audit. The accounting policies related to the application of TFRS 16 and the related amounts are disclosed in Notes 2, 7, and 12. The audit procedures performed, not limited to the following, include: Understanding and evaluating the key processes affecting financial reporting related to TFRS 16 calculations, Assessing the completeness of the contract lists by evaluating whether selected contracts are service or lease contracts, and if they are lease contracts, determining whether they fall under the scope of TFRS 16, Recalculating, through sampling, the right-of-use assets and related lease liabilities recognized in the consolidated financial statements, using inputs such as lease amounts, interest rates, and lease escalation rates, Testing the appropriateness of inputs such as the lease escalation rate, interest rate, etc., used in these calculations, Selecting contracts subject to the calculation of right-of- use assets and lease liabilities using a sampling method, and verifying the proper evaluation of lease contract terms, including the duration and, if applicable, renewal options, with the contract terms, Assessing the adequacy of the disclosures related to the application of TFRS 16 in the notes to the consolidated financial statements. 5) Responsibilities of Management and Those Charged with Governance for the Consolidated Financial The Group management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with TFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. INDEPENDENT AUDITOR’S REPORT Güney Bağımsız Denetim ve SMMM A.Ş. Maslak Mah. Eski Büyükdere Cad. Orjin Maslak İş Merkezi No: 27 Daire: 57, 34485 Sarıyer, İstanbul - Türkiye Tel: +90 212 315 3000 Fax: +90 212 230 8291 ey.com Ticaret Sicil No: 479920 Mersis No: 0-4350-3032-6000017