BIRLESIM_MUEHNDSILIK 2023 AR

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 167 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) Sales of goods and services Income includes invoiced values of goods and service sales. Revenue is recognized on an accrual basis at the fair value of the consideration received or receivable upon delivery of the product or service, transfer of risks and benefits relating to the product, reliable determination of the amount of revenue and the probable economic benefits associated with the transaction. In the event that there is an important financing cost within the sales, the fair value is determined by discounting the future collections with the hidden interest rate included in the financing cost. The difference between the fair value and the nominal value is considered as interest income on an accrual basis. Promotion income Excess goods received: Excess goods received on free basis from pharmaceutical companies (together with goods shipped against consideration) to be consequently distributed to pharmacies as promotion are recognized in inventories at zero value and the unit acquisition cost is determined as the total value of the goods received divided by the quantity of goods received on free basis and those received at consideration. Excess goods on inventories Excess goods on inventories received on free basis from pharmaceutical companies to be consequently distributed on free basis to pharmacies as promotion are recognized in inventories at zero value and have the effect of reducing the unit costs of drugs. Excess Goods Pre-delivered: Excess goods delivered to pharmacies on free basis during campaign periods, on the account and demand of the pharmaceutical companies are consequently received from pharmaceutical companies on free basis, or alternatively, are invoiced to pharmaceutical companies as the cost of pre-delivered excess goods. Excess goods promotions received on free basis for pre-delivered goods are recognized in inventories on the basis of the last purchase unit cost. Alternatively, excess goods received at cost for pre-delivered goods are invoiced to pharmaceutical companies as service cost. When no goods are shipped in return by pharmaceutical companies, a service cost invoice is issued by the Group for the pre-delivered excess goods receivables and taken into records. Sales Premium: Sales premiums which consist of promotions received based on sales and purchase amounts agreed with pharmaceutical companies are recognized in other revenue.