CELEBI GROUND HANDLING 2025 AR

107 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.) 2.8.23 Paid-in Capital Ordinary shares are classified under equity. Costs related to the issuance of new shares and options are deducted from the amount collected, net of tax effects, and are shown under equity. 2.8.24 Netting/Set-Off Any item that is material in terms of content and amount, even if of a similar nature, is shown separately in the consolidated financial statements. Non-material amounts, in terms of their bases and functions, are aggregated and shown together. If the substance of a transaction or event requires set-off, showing the net amount of this transaction or event or tracking the amount after impairment of assets does not constitute a violation of the no-netting rule. Revenues earned outside of the operating income, resulting from transactions carried out in the Group’s normal course of business, are shown at their net amount, provided they are in line with the substance of the transaction or event. 2.9 Significant Accounting Estimates, Assumptions, and Judgments The preparation of consolidated financial statements requires the use of estimates and assumptions that may affect the amounts of reported assets and liabilities, contingent assets and liabilities, and the amounts of reported income and expenses for the period. Although these estimates and assumptions are based on the Group management’s best knowledge of current events and transactions, actual results may differ from those assumptions. The estimates and assumptions that may lead to significant adjustments to the recorded values of assets and liabilities in future financial reporting periods are outlined below: (a) Goodwill Impairment According to the accounting policy specified in Note 2.4.11, goodwill is tested for impairment once a year, as of 31 December, or more frequently if conditions indicate a possible impairment. As of 31 December 2024, no impairment was identified following the Group’s analysis. (b) Impairment of Intangible Assets According to the accounting policy specified in Note 2.4.5, intangible assets are presented at their net value after deducting the acquisition cost, accumulated amortization, and any impairment. (c) Provisions According to the accounting policy specified in Note 2.4.15, provisions are made when, as a result of past events, the Group has a present legal or constructive obligation, and the outflow of resources to settle the obligation is probable, and the amount to be paid can be reliably estimated. In this context, as of 31 December 2024, the Group has reviewed the legal proceedings and compensation cases filed against it and, due to the possibility of losing, has made the necessary provision (Note 14). (d) Corporate Income Tax According to the accounting policy specified in Note 2.4.18, the Group makes provisions for current year tax liabilities, calculated on the taxable portion of the estimated period’s profit and using the applicable tax rates as of the balance sheet date. The tax laws of the countries where the Group’s subsidiaries and jointly controlled entities operate are subject to different interpretations and may change. Therefore, the interpretation of tax laws by tax authorities may differ from that of the management, which may result in the tax authorities interpreting transactions differently, and the Group may be subject to additional taxes, penalties, and interest. As of 31 December 2024, the Group has reviewed the potential tax penalties that may arise in its subsidiaries and jointly controlled entities and has not deemed it necessary to create any provisions beyond those already made.