CELEBI GROUND HANDLING 2025 AR

106 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.) Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset current tax assets against current tax liabilities and if they relate to income taxes levied by the same taxation authority within the same jurisdiction. As of 31 December 2025, a tax rate of 25% has been used in the calculation of deferred tax for all temporary differences. Turkish tax legislation does not permit the parent company to file a consolidated tax return, including its subsidiaries. Therefore, the tax liabilities reflected in the Group’s consolidated financial statements have been calculated separately for each company within the consolidation scope. In the financial position statements dated 31 December 2025, and 2024, the tax amounts payable for each subsidiary have been netted off and are presented separately in the consolidated financial statements. 2.8.20 Employee Benefits Severance Pay The severance pay provision represents the present value of the estimated total liability for future obligations arising from employees’ retirement, based on the Turkish Labor Law and the laws applicable in the countries where the Group’s subsidiaries operate. Under the Turkish Labor Law, the Group is required to make a lump-sum severance payment to each employee who has completed at least one year of service, except in cases of voluntary resignation or termination due to misconduct. The obligation also applies in cases of dismissal, death, or retirement. The present value of the defined benefit obligation is calculated using the projected unit credit method. All actuarial gains and losses are recognized under equity. The severance pay liability is calculated by estimating the present value of the future probable obligation that will arise when employees of the Group’s subsidiaries retire. For companies operating in Turkey, certain transitional provisions have been introduced following the legislative changes on 23 May 2002, regarding pre-retirement service periods. The severance payment amount is equal to one month’s salary per year of service, subject to a maximum limit of TRY 41.828,42 as of 31 December 2025 (31 December 2024: TRY 23.489,83). Provision for Unused Vacation Days The Company recognizes a liability for the number of vacation days earned but not used by employees. This provision is classified as a short-term liability, measured without discounting, and is expensed as incurred in profit or loss. 2.8.21 Cash Flow Statement In the cash flow statement, cash flows for the period are classified and reported based on operating, investing, and financing activities. Cash flows from operating activities show the cash flows arising from the Group’s airport ground services and airport construction and operation activities. Cash flows related to investing activities show the cash flows used and generated by the Group’s investment activities (such as fixed and financial investments). Cash flows related to financing activities show the sources used by the Group in its financing activities and the repayments of those sources. 2.8.22 Dividends Receivables from dividends are recognized as income in the period in which they are declared. Dividend payables are reflected as liabilities in the consolidated financial statements in the period in which they are declared as part of the profit distribution.