BIRLESIM_MUEHNDSILIK 2023 AR

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 147 Birleşim Mühendislik Isitma Soğutma Havalandirma Sanayi Ticaret A.Ş. and its Subsidiaries (Amounts are expressed in terms of purchasing power of Turkish Lira (“TL”) as of December 31, 2023 unless otherwise stated.) Notes to the Consolidated Financial Statements For the Year Ended 31 December 2023 2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued) (b) Inflation Accounting (Continued) The main outlines of TMS 29 indexing procedures are as follows: All items other than those expressed in current purchasing power as of the balance sheet date are indexed using the relevant consumer price index coefficients. Amounts from previous years are also indexed in the same way. Financial statements for previous reporting periods have been adjusted based on the current purchasing power of money at the last balance sheet date. The current period adjustment coefficient has been applied to the previous period financial statements. Monetary asset and liability items are not subject to indexation because they are expressed in current purchasing power at the balance sheet date. Monetary items are cash and items to be received or paid in cash. Non-monetary assets and liabilities are restated by reflecting the changes in the general price index between the date of purchase or initial recording and the balance sheet date to the purchase costs and accumulated depreciation amounts. Thus, tangible assets, intangible assets, right-of-use assets and similar assets are indexed based on their purchase values, not exceeding their market values. Depreciations have also been adjusted in a similar manner. The amounts included in shareholders’ equity have been adjusted as a result of the application of consumer price indices in the periods when these amounts were added to the company or formed within the company. All items included in the statement of profit or loss and other comprehensive income, except those that affect the statement of profit or loss and other comprehensive income of non-monetary items in the statement of financial position, are indexed with coefficients calculated over the periods in which the income and expense accounts are first reflected in the financial statements. Gain or loss resulting from general inflation on the net monetary position; It is the difference between adjustments to non-monetary assets, equity items, and profit or loss and other comprehensive income statements. This gain or loss, calculated on the net monetary position, is included in the net profit. All items presented in the statement of cash flows are expressed in terms of the current measurement unit at the end of the reporting period and adjusted for inflation. The impact of inflation on cash flows from operating, investing and financing activities is attributed to the relevant item and monetary gain or loss on cash and cash equivalents is presented separately. (c) Declaration of Conformity to TFRS: The Group keeps and prepares its legal books and legal financial statements in accordance with the accounting principles determined by the Turkish Commercial Code (“TTK”) and tax legislation. The attached consolidated financial statements have been prepared in accordance with the provisions of the “Communiqué on Principles of Financial Reporting in the Capital Markets” (“Communiqué”), Series II, numbered 14.1, published in the Official Gazette dated 13 June 2013 and numbered 28676 of the Capital Markets Board (“CMB”). Companies reporting in accordance with the CMB legislation apply the Turkish Financial Reporting Standards and their annexes and comments (“TFRS”) published by the Public Oversight Accounting and Auditing Standards Authority (“POA”) in accordance with Article 5 of the Communiqué. reparation of consolidated financial statements in accordance with TFRS requires the use of certain assumptions and significant accounting estimates that will affect the explanatory notes regarding assets and liabilities and contingent assets and liabilities. Although these estimates are based on management’s best estimates of current events and actions, actual results may differ from those anticipated. Assumptions and estimates that are complex and require further interpretation may have a significant impact on the financial statements. There have been no changes in the assumptions and significant accounting estimates used in the preparation of the consolidated financial statements for the period ending 31 December 2023. Consolidated financial statements are prepared on the historical cost basis..