ÇELEBİ HAVA SERVİSİ ANNUAL REPORT 2024

ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ VE BAĞLI ORTAKLIKLARI 94 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 2.6.4 Property, Plant, and Equipment Property, plant, and equipment are carried at their acquisition cost, less accumulated depreciation and, if applicable, accumulated impairment losses, which are reflected in the consolidated financial statements. Depreciation is calculated using the straight-line method, reflecting the economic lives of the assets. The estimated useful lives of property, plant, and equipment are as follows: Useful Life (Years) Machinery and equipment 1-20 Vehicles 2-10 Fixtures and fittings 1-20 Special costs 5-25 Depreciation is charged from the date when the tangible fixed assets are ready for use. Depreciation continues to be charged even during the periods when the assets are idle. The gain or loss arising from the disposal of tangible fixed assets is determined by comparing the net book value of the asset with the amount received and is included in the income and expenses of investment activities. If there are indications of impairment of tangible fixed assets, an assessment is made to identify any possible impairment. If, after this assessment, the carrying amount of the tangible fixed asset exceeds its recoverable amount, the carrying value is reduced to its recoverable amount through the recognition of an impairment allowance. The recoverable amount is considered as the higher of the net cash flows expected from the asset’s current use and its net selling price. Expenditures related to replacing any part of tangible fixed assets can be capitalized if they enhance the future economic benefits of the asset, along with maintenance and repair costs. All other expenditures are recognized as expenses in the income statement as they are incurred. 2.6.5 Intangible Assets a) Goodwill Goodwill is reviewed annually for impairment and is carried in the balance sheet at its cost value less accumulated impairment losses. Any impairment losses recognized on goodwill cannot be reversed. The gain or loss from the sale of a business includes the carrying amount of the goodwill related to the sold entity. For impairment testing, goodwill is allocated to the cash-generating units. The allocation is made to the cash-generating units or groups of units expected to benefit from the business combination in which the goodwill arose. The future cash flow forecasts used in the impairment test do not include cash inflows and outflows related to future restructuring or performance improvements or enhancements that the Group has not yet committed to. b) Computer Software Computer software is recorded at the cost incurred to acquire the rights. Computer software is amortized over its estimated limited useful life using the straight-line method and is carried at the cost less accumulated amortization. The estimated useful life of computer software ranges from 3 to 15 years. Maintenance costs for computer software are expensed as incurred. Development costs initially recognized as expenses cannot be capitalized as assets at a later date. c) Concessions and Build-Operate-Transfer (BOT) Investments Concession agreements involve the construction/upgrade, operation, and maintenance of infrastructure used for providing public services over a pre-determined period by an operator. During the agreement period, the operator earns revenue for the services provided. The agreement defines performance standards, pricing mechanisms, and regulatory frameworks regarding potential disputes. The granting authority controls the infrastructure investment, and at the end of the contract, the operator transfers the infrastructure back to the granting authority.