ÇELEBİ HAVA SERVİSİ ANNUAL REPORT 2024

ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ VE BAĞLI ORTAKLIKLARI 96 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 2.6.9 Lease Transactions Group as Lessee At the commencement of the contract, the Group assesses whether the contract constitutes a lease or contains lease terms. The Group recognizes the right-of-use asset and the corresponding lease liability for all lease contracts except for short-term leases (leases with a term of 12 months or less) and leases of low-value assets. If there is no other systematic basis better reflecting the timing structure of economic benefits derived from the leased assets, the Group recognizes lease payments as an operating expense on a straight-line basis over the lease term. At initial recognition, lease liabilities are recorded at the present value of unpaid lease payments discounted at the lease rate. If this rate is not specified in the agreement, the Group uses an alternative borrowing rate determined by itself. Lease payments included in the measurement of the lease liability consist of the following: - The amount obtained by deducting any lease incentives from fixed lease payments (essentially fixed payments); - Variable lease payments, based on an index or rate, which are initially measured using an index or rate at the lease commencement date; - The amount of debt expected to be paid under residual value guarantees by the lessee; - The exercise price of purchase options, if it is reasonably certain that the lessee will exercise those options; - If a lease termination right exists during the lease term, the penalty payment for the lease termination. The lease liability is presented as a separate item in the consolidated statement of financial position. The lease liability is subsequently measured by increasing the net book value (using the effective interest method) to reflect the interest on the lease liability and decreasing the net book value to reflect the lease payments made. The Group will reassess the lease liability (and make appropriate adjustments to the related right-of-use asset) in the following situations: - When there is a change in the assessment of the lease term or the exercise of a purchase option, the revised lease payments are discounted using a revised discount rate, and the lease liability is remeasured. - When there is a change in lease payments due to changes in the index, rate, or expected payment changes in the committed residual value, the lease liability is remeasured by discounting the revised lease payments using the initial discount rate (if the change in lease payments is due to a change in the variable interest rate, the revised discount rate is used). - When a lease contract is modified and the lease modification is not accounted for as a separate lease, the revised lease payments are discounted using the revised discount rate, and the lease liability is re-measured accordingly. The Group has not made such a modification during the periods presented in the financial statements. Right-of-use assets include the initial measurement of the corresponding lease liability, lease payments made before or at the commencement date of the lease, and any other direct initial costs. These assets are subsequently measured at cost, less accumulated depreciation and impairment losses. If the Group incurs costs for dismantling and removing a leased asset, restoring the area where the asset is located, or restoring the underlying asset in accordance with lease terms and conditions, a provision is recognized in accordance with IAS 37. These costs are included in the related right-of-use asset, unless they are incurred for the production of inventory.t Right-of-use assets are amortized over the shorter of the lease term and the useful life of the underlying asset. When ownership of the underlying asset is transferred or the Group plans to exercise a purchase option based on the cost of the right-of-use asset, the related right-of-use asset is amortized over the useful life of the underlying asset. Amortization begins on the lease commencement date. Right-of-use assets are presented as a separate line item in the consolidated statement of financial position. The Group applies the IAS 36 standard to assess whether right-of-use assets are impaired, and all recognized impairment losses are accounted for as outlined in the “Property, Plant and Equipment” policy.