BIRLESIM_MUEHNDSILIK 2023 AR

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 150 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) Changes in the Capital Share of the Parent Company’s Existing Subsidiary Changes in the parent company’s capital interest in its subsidiaries that do not result in a loss of control are accounted for as equity transactions. The book values ​of the parent company’s share and non-controlling interests are adjusted to reflect changes in subsidiary shares. The difference between the amount adjusted for non-controlling interests and the fair value of the consideration received or paid is directly accounted for as the parent’s share in equity. In case the parent company loses control over a subsidiary, the profit/loss after sale is calculated as the difference between i) the sum of the sales price received and the fair values ​of the remaining share and ii) the previous book values ​of the assets (including goodwill) and liabilities of the subsidiary and non-controlling interests. is calculated. Amounts previously recognized and collected in equity regarding the subsidiary within other comprehensive income are recorded according to the accounting method to be used on the assumption that the parent company has sold the relevant assets (for example, in accordance with the relevant TMS standards, transferring to profit/loss or transferring directly to retained earnings). . The fair value at the date of loss of control of the investment remaining after the sale of the subsidiary is treated as fair value in initial recognition or, where applicable, as the cost in initial recognition of an investment in an associate or a jointly controlled entity. Business Combinations and Goodwill A business combination is an event or transaction in which the acquiring company gains control of one or more businesses. In the Group’s business combinations realized in 2017 and 2018, the acquisition method was applied within the scope of the revised TFRS 3 “Business Combinations” standard, effective as of January 1, 2010. In this method, the cost of acquisition includes the fair value of the assets given at the date of acquisition, capital instruments issued, liabilities assumed or incurred at the date of exchange, and additional costs that can be associated with the acquisition. If the business combination agreement contains provisions stipulating that the cost can be adjusted depending on future events; If this adjustment is probable and its value can be determined, this adjustment is included in the merger cost at the merger date. The difference between the acquisition cost incurred in purchasing a business and the fair value of the identifiable assets, liabilities and contingent liabilities of the acquired business is recognized as goodwill in the consolidated financial statements. Goodwill arising in a business combination is not amortized but is instead tested for impairment annually (as of December 31) or more frequently when circumstances indicate impairment. Impairment losses calculated on goodwill are not associated with the statement of profit or loss if the impairment in question disappears in the following periods. Goodwill is attributed to cash-generating units during impairment testing. If the acquirer’s share in the fair value of the acquired identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the difference is associated with the consolidated statement of profit or loss.