BIRLESIM_MUEHNDSILIK 2023 AR

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 153 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) a) New Standard, Amendments and Interpretations Effective January 1, 2023 (Continued) TAS 8 Amendments - Definition of Accounting Estimates In August 2021, the POA published amendments to IAS 8 that introduced a new definition for “accounting estimates”. The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and corrections of errors. It also clarifies how businesses can use measurement techniques and inputs to develop accounting estimates. The amended standard clarifies that the effects on an accounting estimate of a change in input or a change in a measurement technique are changes in accounting estimates if they do not result from the correction of prior period errors. The previous definition of change in accounting estimate stated that changes in accounting estimates could result from new information or new developments. Therefore, such changes are not considered bug fixes. The changes published for TAS 8 are valid for annual accounting periods starting on or after January 1, 2023. This amendment to TMS 8 did not have a significant impact on the Group’s consolidated financial statements. TMS 12 Amendments - Deferred Tax on Assets and Liabilities Arising from a Single Transaction In August 2021, the POA published amendments to IAS 12 that narrow the scope of the initial recognition exception, thus ensuring that the exception does not apply to transactions that give rise to equal taxable and deductible temporary differences. The changes require that, where payments made in respect of a liability are deductible for tax purposes, a judgment will be made (having regard to applicable tax law) as to whether such deductions are attributable for tax purposes to the liability (and interest expense) or to the relevant asset component (and interest expense) recognized in the financial statements. It clarifies the issue. This judgment is important in determining whether there are any temporary differences in the initial recognition of the asset and liability. The amendments to TAS 12 are valid for annual accounting periods starting on or after January 1, 2023. This amendment to TAS 12 did not have a significant impact on the Group’s consolidated financial statements. b) Standards Published as of December 31, 2023, But Not Entered into Force and Not Early Implemented Amendments to TAS 1 - Long-Term Liabilities Including Credit Agreement Conditions The amendments set out in Long-Term Liabilities with Credit Agreement Terms clarify whether, at the reporting date, the entity needs to take into account future credit agreement terms when assessing the classification of debt as short-term or long-term. Businesses have the right to postpone the payment of obligations arising from loan agreements; Such liabilities may be classified as long-term if they are subject to compliance with the terms of the loan agreement within twelve months after the reporting period. In such cases, the entity discloses information in the footnotes that will enable users of the financial statements to understand that the liabilities are at risk of being repaid within twelve months after the reporting period. This change improves the information provided about long- term debt to help investors understand the risk of such debt becoming delinquent early. These changes apply for annual periods beginning on or after January 1, 2024. Early application is allowed. The Group is evaluating the possible effects of this change on its consolidated financial statements.