BIRLESIM_MUEHNDSILIK 2023 AR

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 149 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) (h) Principles Regarding Consolidation (Continued) Full Consolidation Method: Balance sheet items other than the paid-in capital and shareholders’ equity at the date of acquisition of the Parent Company and its subsidiaries are added. In the totalization process, the receivables and debts of the partnerships subject to the consolidation method are mutually deducted. - The Parent Company’s shares in subsidiaries are mutually eliminated from the financial investments in the parent company and the capital account in the subsidiaries. - As of the date when the partnerships within the scope of consolidation become subsidiaries and for one-time use in subsequent share purchases, the acquisition cost of the shares held by the parent company in the capital of the subsidiary is deducted from the value represented by these shares in the equity of the subsidiaries in the balance sheet valued at fair value. - Amounts corresponding to the parent company and non-subsidiary shares are deducted from all equity account group items, including paid/issued capital, of the subsidiaries within the scope of consolidation and are shown as the ‘Non-Controlling Interests’ account group in the equity account group of the consolidated balance sheet. - Purchase and sale transactions between the Parent Company and its subsidiaries and the profits and losses arising from these transactions are canceled in the consolidated statement of comprehensive income. The said canceled profits and losses include securities, stocks, tangible and intangible assets, financial investments and other assets that are subject to purchase and sale among the partners subject to consolidation. Non-Controlling Share Acquisitions In each business combination, the Group measures the non-controlling interest in the acquired business using one of the following methods. - At fair value or - On the basis of the share of the net configuration assets of the information obtained, generally their appropriate owners, in their recognized amounts. Changes in the Group’s shares in subsidiaries that do not result in a loss of control are accounted for as partnership-related transactions with partners. Adjustments for non-controlling interests are calculated based on the proportionate amount of the subsidiary’s net asset value. There is no adjustment to goodwill and no gain or loss is recognized in profit or loss. Subsidiaries are entities controlled by the Group. If the Group has the authority to exercise more than 50% of the voting rights in companies as a result of the shares directly and/or indirectly owned by it, or although it does not have more than 50% voting authority, it may exercise financial and operating control over financial and operating policies. The relevant company is included in the consolidation if it has the authority and power to control its policies in line with the interests of the Group.