BIRLESIM_MUEHNDSILIK 2023 AR

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 163 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) Right of use asset The right of use asset is initially recognized at cost comprising of: a) amount of the initial measurement of the lease liability; b) any lease payments made at or before the commencement date, less any lease incentives received; c) any initial direct costs incurred by the Group; and c) Costs incurred by the Group in the restoration of the underlying asset to the extent required by the terms and conditions of the lease. To apply a cost model, the Group measure the right-of-use asset at cost: a) less any accumulated depreciation and any accumulated impairment losses; and b) adjusted for any remeasurement of the lease liability The Group applies the depreciation provisions of TAS 16, “Property, Plant and Equipment while depreciating the right of use. The Group apply TAS 36 Impairment of Assets to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.