BIRLESIM_MUEHNDSILIK 2023 AR

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 161 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) (k) Summary of Significant Accounting Policies (Continued) Operational Lease a) Group-as a tenant Operational Lease Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the consolidated statement of profit or loss on a straight-line basis over the period of the lease. b) Group-as a renter Operational Lease Except for the leased assets, real estates, land and investment properties held under operational leases, they are classified under property, plant and equipment in the consolidated statement of financial position. The rental income is recognized in the consolidated statement of profit or loss on a straight-line basis over the lease term. Rental income is recognized on a straight-line basis over the period of the lease. Loans and borrowing costs Bank borrowings are recognized initially at proceeds received, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost using the effective yield method; any difference between proceeds, net of transaction costs, and the amortized cost is recognized in the income statement over the period of the borrowings. Borrowing costs are charged to the income statement when they are incurred. In the case of assets requiring considerable time to be ready for use and sale, borrowing costs that are directly attributable to the acquisition, construction or production are included in the cost of the asset until the asset is ready for use or sale. Borrowing costs include other costs incurred due to interest and borrowing. Since the Group does not have any borrowing costs associated with the qualifying assets, all borrowing costs are recognized in the statement of profit or loss.