BIRLESIM_MUEHNDSILIK 2023 AR

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 151 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) Acquisitions from Business Interests Under Common Control Business combinations resulting from the transfer of shares of companies controlled by the main shareholder controlling the Group are accounted for when joint control is achieved. Acquired assets and liabilities are recorded at book value. Equity items of the acquired companies are added to the same items in the Group’s equity capital, apart from the capital, and the resulting profit or loss is accounted in equity. Erde Mühendislik Sanayi ve Ticaret A.Ş. In accordance with the Board of Directors decision taken on 10 December 2013, the partners transferred 100% of their shares to the Parent Company for 10,463,383 TL. The transfer transaction was made based on the financial statements dated 31 December 2013. Assets and liabilities acquired from business combinations realized through the share transfer of Erde Mühendislik Sanayi ve Ticaret A.Ş., which is under the common control of the shareholders controlling the Parent Company, are accounted for at their book values. Based on the Public Oversight Accounting and Auditing Standards Authority’s Principle Decision No. 2018-1 on the Accounting of Business Combinations Subject to Common Control for the Implementation of Turkish Accounting Standards; - Business combinations subject to common control are accounted for by the pooling of interest method; Therefore, the acquired assets and liabilities are carried at their pre-merger values ​and goodwill is not included in the consolidated financial statements. - While applying the pooling of rights method, the consolidated financial statements have been corrected as if the merger had occurred as of the beginning of the reporting period in which joint control occurred between the Parent Company and Erde Mühendislik and are presented comparatively from the beginning of the reporting period in which joint control occurred. - Since it would be appropriate to look at the parent company’s perspective in reflecting business combinations subject to common control to the consolidated financial statements, in the consolidation process, the financial statements are reconstructed in accordance with the provisions of TFRS, including merger accounting, as if the financial statements were prepared in accordance with TFRS, on and after the date when the company that controls the group acquires control of the companies under common control. edited. In order to eliminate the possible asset-liability mismatch that may arise due to a business combination under common control, the “Effect of Mergers Involving Undertakings or Businesses under Common Control” account was used as a balancing account under equity. (ı) Changes in Accounting Policies Significant changes in accounting policies are applied retrospectively and previous period financial statements are restated. The Group has not made any changes in its accounting policies during the current year. The consolidated financial statements for the year ended 31 December 2023 have been prepared by applying accounting policies consistent with the accounting policies applied in the preparation of the consolidated financial statements for the year ended 31 December 2022. (i) Changes and Errors in Accounting Estimates If changes in accounting estimates are related to only one period, they are applied prospectively in the current period in which the change is made; if they are related to future periods, they are applied prospectively both in the period in which the change is made and in future periods. Information regarding changes in the Group’s accounting estimates during the current year is stated in footnote 2.g.