BIRLESIM_2021_ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2021 ANNUAL REPORT 147 Birleşim Mühendislik Isıtma Soğutma Havalandırma Sanayi Ticaret A.Ş. and Its Subsidiary (All amounts expressed in Turkish Lira (“TL”)) Notes to the Consolidated Financial Statements For the Year Ended 31 December 2021 2. BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (c) Statement of Compliance with TAS: The accompanying consolidated financial statements have been prepared in accordance with Turkish Accounting Standards (“TAS”) published by Public Oversight Accounting and Auditing Standards Authority (“POA”) the supplementary information and the interpretations related to them. The condensed consolidated financial statements and notes are presented in accordance with the formats in “Examples of Financial Statements and Usage Guide” and TAS taxonomy which was published by POA on June 7, 2019. Companies that are subject to independent audit in accordance with the Turkish Commercial Law No. 6102, and those that do not have to apply TFRSs in accordance with the board decision on the scope of TMS application of KGK, can optionally prepare their financial statements in accordance with TFRS Within this scope, the Group management (as in the previous period financial statements) preferred to prepare its financial statements dated December 31, 2020 in accordance with TFRSs. (d) Approval of the consolidated financial statements: The consolidated financial statements of the Group prepared in accordance with the TAS/TFRS have been approved by the Board of Directors on 8 March 2022. The General Assembly and other regulatory organs reserve their right to modify and change these consolidated financial statements. (e) Reporting and Functional Currency The individual financial statements of each Group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each entity are expressed in Turkish Lira (“TL”), which is the functional and presentation currency of the Group. (f) Going Concern The Group prepared its consolidated financial statements in accordance with the going concern assumption. (g) Comparative Information and Reclassification of Prior Period Consolidated Financial Statements The current period consolidated financial statements of the Group include comparative financial information to enable the determination of the financial position and performance. Comparative figures are reclassified, where necessary, to conform to the changes in the presentation of the current period consolidated financial statements. (h) Basis of Consolidation Financial and operating policies in which the Parent directly or indirectly owns 100% or more of the shares, or has 100% voting rights, or does not exercise more than 100% of the voting rights, but does not exercise de facto dominance over the financial and operating policies. The businesses over which it has control rights are subject to full consolidation. The subsidiary is included in the accompanying consolidated financial statements using the full consolidation method. The details of the Company’s subsidiaries at 31 December 2021 and 2020 are as follows: Subsidiaries Name 31 December 2021 31 December 2020 Erde Mühendislik Sanayi ve Ticaret A.Ş. 100,00% 100,00%