ÇELEBİ HAVA SERVİSİ ANNUAL REPORT 2024

ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ VE BAĞLI ORTAKLIKLARI 97 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 Group as a Lessor The leases in which the Group acts as a lessor are classified as either finance leases or operating leases. If all significant ownership risks and rewards are substantially transferred to the lessee under the lease terms, the contract is classified as a finance lease, while all other leases are classified as operating leases. When acting as an intermediate lessor, the Group accounts for the main lease and the sublease as two separate contracts, with the sublease classified as either a finance lease or an operating lease based on the right-of-use asset arising from the main lease. Rental income from operating leases is recognized on a straight-line basis over the lease term, and any directly attributable initial costs incurred in negotiating and arranging an operating lease are included in the cost of the leased asset and amortized over the lease term. Finance lease receivables from lessees are recognized as receivables equal to the Group’s net investment in the lease, and finance lease income is allocated to accounting periods to reflect a constant periodic rate of return on the Group’s outstanding net investment. If a contract contains both lease and non-lease components, the Group applies the TFRS 15 standard to allocate the consideration specified in the contract to each component. 2.6.10 Business Combinations and Goodwill Business combinations are considered as the merging of two separate legal entities or businesses to be presented as a single reporting entity. Business combinations are accounted for using the acquisition method under IFRS 3 (Note 13). The acquisition cost incurred in the acquisition of a business is allocated to the identifiable assets, liabilities, and contingent liabilities of the acquired business at the acquisition date. Any portion of the acquisition cost exceeding the acquirer’s share of the fair value of the identifiable assets, liabilities, and contingent liabilities of the acquired business is recognized as goodwill. In business combinations, assets not reflected in the acquired company’s financial statements (such as carry forward tax losses), intangible assets (such as brand value), and/or contingent liabilities are recognized at their fair values in the consolidated financial statements. Goodwill amounts recorded in the acquired company’s financial statements are not considered identifiable assets. Goodwill arising during a business combination is not amortized but instead subjected to an impairment test annually or more frequently if there are indicators of impairment. Impairment charges related to goodwill are not reversed in subsequent periods. For impairment testing, goodwill is allocated to cash-generating units. This allocation is made to the cash-generating units or groups of cash-generating units expected to benefit from the business combination that gave rise to the goodwill. If the acquirer’s share of the fair value of the identifiable assets, liabilities, and contingent liabilities of the acquired business exceeds the cost of the business combination, the difference is recognized as a gain in the consolidated income statement. As of 31 December 2024, the net assets of PTN have been provisionally recognized in the consolidated financial statements in accordance with the provisions of IFRS 3 “Business Combinations.” Under IFRS 3, any adjustments arising from the subsequent allocation of the purchase price in provisional amounts will be made during the measurement period as required by IFRS 3.