CELEBI GROUND HANDLING 2025 AR

100 Çelebi Ground Handling 2025 Annual Report ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) 2.8.6 Inventories Inventories are valued at the lower of net realizable value or cost. The cost of inventories includes all purchase costs and other costs incurred to bring the inventories to their present location and condition. The unit cost of inventories is determined using the weighted average cost method. Interest costs are not included in the inventory cost. The net realizable value is the estimated selling price in the ordinary course of business, less completion costs and the costs necessary to make the sale. 2.8.7 Impairment of Assets The Group evaluates, on each balance sheet date, whether there is any indication of impairment for each asset, except for deferred tax assets, intangible assets with indefinite useful lives, and financial assets presented at fair value. If there is an indication of impairment, the recoverable amount of the asset is estimated. If the carrying amount of the asset or any of its cash-generating units exceeds the amount recoverable through use or sale, impairment is recognized. The recoverable amount is the higher of the fair value less costs to sell and the value in use, with the value in use being the present value of the expected future cash flows from the continuous use of the asset and its disposal at the end of its useful life. Impairment losses are recognized in the income statement. A cash-generating unit is the smallest distinguishable group of assets that generates independent cash inflows. If the impairment loss of an asset is later reversed due to an event related to the period after the recognition of the impairment, it is reversed, but the reversal cannot exceed the carrying amount that would have been determined if no impairment had been recognized, and it is reflected as income in the consolidated financial statements. 2.8.8 Financial Liabilities and Borrowing Costs Loans are recorded at their values after deducting transaction costs from the loan amount at the time of borrowing. Loans are subsequently stated at their amortized cost, discounted using the effective interest method. The difference between the remaining amount after deducting transaction costs and the discounted cost is reflected as financing costs in the consolidated income statement over the loan period. Financing costs arising from loans are included in the cost of related assets if they are associated with the acquisition or construction of specific assets. Specific assets refer to those that require a long period to be ready for use or sale. All other borrowing costs are recorded in the profit or loss statement in the period in which they are incurred. 2.8.9 Non-Current Assets Held for Sale and Discontinued Operations Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use, and when the sale is considered highly probable. An impairment loss is recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. Any subsequent increase in the fair value of an asset (or disposal group) is recognized as a gain, provided that it does not exceed the cumulative impairment losses previously recognized. Any gain or loss not previously recognized by the date of sale of a non-current asset (or disposal group) is recognized at the date of its derecognition from the statement of financial position. Non-current assets classified as held for sale and assets within a disposal group classified as held for sale are presented separately from other assets in the statement of financial position. A discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale, and represents a separate major line of business or geographical area of operations, is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations, or is a subsidiary acquired exclusively with a view to resale. Additional disclosures are provided in Note 6. Unless otherwise stated, all other notes to the financial statements include amounts related to continuing operations.