BIRLESIM_MUEHNDSILIK 2023 AR

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 162 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) TFRS 16 Leases The Group - as a lessee At the beginning of a contract, the Group evaluates whether the contract is a lease of whether it contains a lease. If the contract delegates the right to control the use of the asset defined for a price, for a certain period of time, this contract is a lease or includes a lease. The Group considers the following conditions when evaluating whether a contract delegates its right to control the use of a defined asset for a specified period of time: a) the contract involved the use of an identified asset - this may be specified explicitly or implicitly. b) the asset should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, the asset is not identified. c) the Group has the right to obtain substantially all of the economic benefits from the use of an asset throughout the period of use; and d) the Group has the right to direct use of the asset. The Group concludes to have the right of use, when it is predetermined how and for what purpose the Group will use the asset. The Group has the right to direct use of asset if either: i. the Group has the right to operate (or to have the right to direct others to operate) the asset over its useful life and the lessor does not have the rights to change the terms to operate or; ii. the Group designed the asset (or the specific features) in a way that predetermines how and for what purpose it is used At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.