ÇELEBİ HAVA SERVİSİ ANNUAL REPORT 2024

ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ VE BAĞLI ORTAKLIKLARI 93 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2024 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) Çelebi Ground Handling 2024 Annual Report 2.6.2 Financial Assets Classification The Group classifies its financial assets into three categories: “financial assets measured at amortized cost,” “financial assets measured at fair value through other comprehensive income,” and “financial assets measured at fair value through profit or loss.” Classification is based on the business model used by the entity for managing the financial assets and the characteristics of the contractual cash flows of the financial asset. The Group makes the classification of its financial assets at the acquisition date. Financial assets are not reclassified after their initial recognition, except in the case of a change in the business model used for managing the financial assets. In the event of a change in the business model, the financial assets are reclassified on the first day of the reporting period following the change. Recognition and Measurement “Financial assets measured at amortized cost” are financial assets that are held within a business model whose objective is to collect contractual cash flows, which consist solely of principal and interest payments on the outstanding principal balance and are not derivative instruments. The Group’s financial assets measured at amortized cost include items such as “cash and cash equivalents,” “trade receivables,” “other receivables,” and “financial investments.” These assets are initially recognized at their fair value on the financial statements and, after initial recognition, are measured at amortized cost using the effective interest rate method. The gains and losses resulting from the measurement of financial assets at amortized cost and non- derivative financial assets are recognized in the consolidated income statement. “Financial assets measured at fair value through other comprehensive income” are financial assets that are held within a business model whose objective is to collect contractual cash flows and to sell the financial asset, which consist solely of principal and interest payments on the outstanding principal balance and are not derivative instruments. The gains or losses arising from these financial assets, excluding impairment losses or gains, and exchange differences, are recognized in other comprehensive income. Upon the sale of these assets, the accumulated valuation differences recognized in other comprehensive income are reclassified to retained earnings. “Financial assets measured at fair value through profit or loss” include all financial assets that are not classified as either financial assets measured at amortized cost or financial assets measured at fair value through other comprehensive income. The gains and losses resulting from the measurement of these financial assets are recognized in the consolidated income statement. Derecognition of Financial Assets The Group derecognizes a financial asset from its records when the rights to the related cash flows from the financial asset have expired, or when the ownership of all risks and rewards associated with the financial asset is transferred through a sale transaction. Any rights created or retained by the Group in relation to the transferred financial asset are recognized as a separate asset or liability. Impairment Impairment of financial assets and contract assets is calculated using the “expected credit loss” (ECL) model. The impairment model applies to financial assets measured at amortized cost and contract assets. If, at the reporting date, the financial asset has low credit risk, the Group may determine that there has not been a significant increase in credit risk. However, for trade receivables and contract assets, the lifetime ECL measurement (simplified approach) always applies, without a significant financing component. 2.6.3 Cash and Cash Equivalents Cash and cash equivalents include cash on hand, bank deposits, and short-term investments that are readily convertible to known amounts of cash, with an insignificant risk of changes in value, and have a maturity of three months or less (Note 4).