CELEBI GROUND HANDLING 2025 AR

97 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.) Amendments to IAS 21 - Translation to a Hyperinflationary Presentation The amendments issued by the Board in November 2025 require translation from a non-hyperinflationary functional currency into a hyperinflationary presentation currency at the closing rate. Accordingly, if an entity’s functional currency is the currency of a non-hyperinflationary economy, but its presentation currency is the currency of a hyperinflationary economy, its results and financial position are translated into the presentation currency by translating all amounts (i.e., assets, liabilities, equity items, income and expenses) and all comparatives at the closing rate at the end of the current reporting period. Furthermore, an entity whose functional currency and presentation currency are the currency of a hyperinflationary economy, restates the comparative amounts of a foreign operation, whose functional currency is that of a non-hyperinflationary economy, by applying the general price index, in accordance with IAS 29, to the foreign operation’s comparative figures. The amendments also introduce certain additional disclosure requirements. The effects of the amendment on the Group’s financial statements are currently being assessed. 2.8. Summary of Significant Accounting Policies 2.8.1 Recognition of Revenues Revenues are recognized on an accrual basis at the fair value of the amount received or receivable from the sale of goods and services. Net sales represent the invoiced amount for delivered goods and services, after deducting sales discounts and returns. If there is a significant financing component in the sales, the fair value is determined by discounting future payments at the interest rate inherent in the financing component. The difference is recognized as other income from operating activities for the relevant periods on an accrual basis. Dividend Income Dividend income is recognized when the right to receive the dividend arises. 2.8.2 Financial Assets Classification The Group classifies its financial assets into three categories: “financial assets measured at amortized cost,” “financial assets measured at fair value through other comprehensive income,” and “financial assets measured at fair value through profit or loss.” Classification is based on the business model used by the entity for managing the financial assets and the characteristics of the contractual cash flows of the financial asset. The Group makes the classification of its financial assets at the acquisition date. Financial assets are not reclassified after their initial recognition, except in the case of a change in the business model used for managing the financial assets. In the event of a change in the business model, the financial assets are reclassified on the first day of the reporting period following the change. Recognition and Measurement “Financial assets measured at amortized cost” are financial assets that are held within a business model whose objective is to collect contractual cash flows, which consist solely of principal and interest payments on the outstanding principal balance and are not derivative instruments. The Group’s financial assets measured at amortized cost include items such as “cash and cash equivalents,” “trade receivables,” “other receivables,” and “financial investments.” These assets are initially recognized at their fair value on the financial statements and, after initial recognition, are measured at amortized cost using the effective interest rate method. The gains and losses resulting from the measurement of financial assets at amortized cost and non- derivative financial assets are recognized in the consolidated income statement. “Financial assets measured at fair value through other comprehensive income” are financial assets that are held within a business model whose objective is to collect contractual cash flows and to sell the financial asset, which consist solely of principal and interest payments on the outstanding principal balance and are not derivative instruments. The gains or losses arising from these financial assets, excluding impairment losses or gains, and exchange differences, are recognized in other comprehensive income. Upon the sale of these assets, the accumulated valuation differences recognized in other comprehensive income are reclassified to retained earnings.