BIRLESIM_2021_ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2021 ANNUAL REPORT 134 Consolidated Financial Statement and Independent Auditor’s Report Key Audit Matter How The Matter was Handled During the Audit Revenue Recognition Accounting policies and important accounting evaluations, estimates and assumptions used in accounting of the Group’s revenue from construction and contracting from mechanical and electrical installation are presented in Notes 2 and 22. Revenue is recognized in accordance with TFRS 15 “Revenue from Customer Contracts” as a result of the realization of the Group’s performance obligations and accordingly the transfer of control over products and services to the buyer in consolidated financial statements. The Group applies the percentage of completion method in determining revenue and cost in relation to ongoing construction and contracting contracts. Significant assumptions are used to determine the percentage of completion and total project cost. Recognition of revenue has been determined as a key audit matter due to the importance of revenue in the consolidated financial statements; its increase compared to the prior year and due to the fact that completion of percentage method contains important estimates and assumptions. Our audit procedures performed with regard to recognition of revenue are as follows: - In order to test whether the management recognize the revenue in the consolidated financial statements in complete and in the correct period, the internal controls regarding the revenue recognition process have been evaluated. - In construction projects, estimated completion cost and reasonableness of the Group Management’s assumptions, expectations and judgements affecting the revenue recognized by percentage of completion method have been evaluated. - In the substantive testing, it has been evaluated whether the control of the invoiced products was transferred to the customer and whether it was recognized in the financial statements completely and accurately. - The disclosures in the consolidated financial statement notes regarding the recognition of revenue have been examined and the adequacy of the information contained in these notes has been evaluated in terms of TFRS. Key Audit Matter How The Matter was Handled During the Audit Related Party Balances and Transactions Group’s accounting policies regarding related party transactions and balances and the significant accounting evaluations, estimates and assumptions used are presented in Note 2 and Note 4. Related Partiey Balances and Transactions has been determined as a key audit matter due to the fact that the related party transactions and balances in the consolidated financial statements of the Group are intense and significant. Our audit procedures performed with regard to related party balances and transactions are as follows: - The Group’s related party balances and transactions have been evaluated. - Group’s ability to collect receivables from related parties have been evaluated. - The confirmations of receivables and payables of Group from related parties have been obtained. - The disclosures in the consolidated financial statement notes regarding the related party balances and transactions have been examined and the adequacy of the information contained in these notes has been evaluated in terms of TFRS.