CELEBI GROUND HANDLING 2025 AR

92 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.) c) Financial Statements of Foreign Subsidiaries, Joint Ventures, and Associates The financial statements of foreign subsidiaries and associates, prepared in accordance with the Group’s accounting policies, are translated into the Group’s reporting currency, TL, using the closing exchange rate for assets and liabilities and the average exchange rate for income and expenses. Foreign exchange differences arising from the use of closing and average exchange rates for subsidiaries and associates are recognized under equity within the “foreign currency translation differences” account. As of 31 December 2025, the functional currencies of the Group companies are presented below. Company Currency Çelebi Kargo (*) Turkish Lira (TL) Celebi Cargo Euro (EUR) CGHH Hungarian Forint (HUF) Çelebi Tanzania Tanzanian Shilling (TZS) PTN Indonesian Rupiah (IDR) CAI Indonesian Rupiah (IDR) TCC Kenyan Shillin (KES) Celebi Delhi Cargo Indian Rupiah (INR) Celebi Nas Indian Rupiah (INR) CASI Indian Rupiah (INR) CGHI Indian Rupiah (INR) CGSC Indian Rupiah (INR) Çelebi Kargo (*) Indian Rupiah (INR) (*) The financial statements of Çelebi Kargo, whose functional currency is the same as the presentation currency (TL), have been consolidated in TL using the direct method, and no translation differences have been recognized from Çelebi Kargo’s financials. Adjustment of Financial Statements in Periods of High Inflation Entities applying TFRS have started implementing inflation accounting in accordance with TAS 29 Financial Reporting in Hyperinflationary Economies, following the announcement made by KGK on 23 November 2023. This application is mandatory for financial statements for annual reporting periods ending on or after 31 December 2023, including consolidated financial statements. Since the functional currencies of the Company and its subsidiaries, except for Çelebi Kargo, are not TL, TAS 29 has not been applied in the consolidated financial statements except for Çelebi Kargo. As a result of the inflation accounting applied to the financial investment accounts of Çelebi Kargo, whose functional currency is TL, in its subsidiary with a capital and functional currency in Euro, the inflation effects were offset through eliminations at the consolidated level and accounted for under retained earnings. 2.2 Consolidation Principles a) The consolidated financial statements include the accounts of the parent company, Çelebi Hava, its subsidiaries, joint ventures, and associates, as outlined in paragraphs (b) to (f) below. The financial statements of entities included in the consolidation scope have been prepared in accordance with TFRS, considering necessary adjustments and classifications, ensuring uniform accounting principles and practices. The financial results of subsidiaries, joint ventures, and associates are included or excluded in line with the acquisition or disposal dates of these entities.