CELEBI GROUND HANDLING 2025 AR

25 Çelebi Ground Handling 2025 Annual Report 9. INFORMATION ABOUT FINANCIAL STATEMENTS AND REPORTS a) Applied Accounting Standards The Company and its subsidiaries domiciled in Türkiye maintain their statutory books and prepare their statutory financial statements in accordance with the accounting principles prescribed by the Turkish Commercial Code (“TCC”) and tax legislation. The attached consolidated financial statements are issued in compliance with the Capital Markets Board (CMB) Communiqué Serial: II, No: 14.1 on Principles of Financial Reporting in the Capital Markets, which is published in the Official Gazette no. 28676 and dated 13 June 2013. In accordance with Article 5 of the communiqué, the Turkish Financial Reporting Standards (TFRS) released by the Public Oversight Accounting and Auditing Standards Authority (KGK) and the related annexes and comments were taken as a basis in the publication of the consolidated financial statements. The consolidated financial statements are presented in accordance with the formats specified in the “Announcement regarding IFRS Taxonomy” published by the KGK on 03 July 2024, and in the Illustrative Financial Statements and User Guide published by the CMB. The subsidiaries operating abroad prepare their accounting records and financial statements in the currencies of the countries in which they operate and in accordance with the legislation of those countries. The accompanying consolidated financial statements have been prepared on the basis of historical cost, except for financial investments recognized at fair value. Foreign Currency Conversion a) Functional and presentation currency Each item included in the financial statements of subsidiaries and associates has been accounted for using the currency of the primary economic environment in which the entities operate (the “functional currency”). The Company’s functional currency is the Euro, while the consolidated financial statements are presented in Turkish Lira. Currencies other than the Euro are treated as foreign currencies. The Company has measured its financial statement items in Euro, its functional currency, and presented them in Turkish Lira (“TL”), the reporting currency. b) Foreign currency transactions and balances Foreign currency transactions are converted using the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are converted using the exchange rates prevailing at the statement of financial position date. Within the Group companies, foreign exchange gains or losses arising from foreign currency-denominated commercial transactions (trade receivables and payables) are recognized under “other operating income/expenses,” while foreign exchange gains or losses arising from the conversion of other foreign currency-denominated monetary assets and liabilities are recognized under “finance income/expenses” in the consolidated statement of profit or loss. Non-monetary items denominated in foreign currencies and measured at historical cost are converted into the functional currency using the exchange rates prevailing on the initial transaction date. Non-monetary items denominated in foreign currencies and measured at fair value are converted into the functional currency using the exchange rates prevailing on the date the fair value is determined. c) Financial statements of subsidiaries, joint ventures, and associates operating in foreign countries The assets and liabilities included in the financial statements of subsidiaries and associates operating in foreign countries, which are prepared in accordance with the Group’s accounting policies, are converted into the presentation currency TL from the Group’s functional currency Euro using the closing exchange rate at the statement of financial position date, while income and expenses are converted using average exchange rates through the direct conversion method. Foreign exchange differences arising from the use of closing and average exchange rates in the conversion of subsidiaries and associates are recognized under “foreign currency conversion differences to be reclassified to profit or loss” within equity.