BIRLESIM_2021_ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2021 ANNUAL REPORT 148 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) (h) Basis of Consolidation (continued) Full Consolidation Method: - Balance sheet items other than the paid-in capital of the Parent Company and its subsidiary and its equity at the acquisition date are added up. In the collection process, the receivables and payables of the partnerships subject to the consolidation method from each other are mutually deducted. - The Parent’s shares in the subsidiary are mutually eliminated from the financial investments in the parent and the capital account in the subsidiary. - As of the date when the partnership within the scope of consolidation becomes a subsidiary and for one time only in subsequent share purchases, the acquisition cost of the shares held by the parent company in the subsidiary’s capital is deducted from the value represented by these shares in the equity of the subsidiary’s balance sheet valued at fair value. - From all equity account group items of the subsidiary within the scope of consolidation, including the paid/issued capital, the amounts corresponding to the parent and non-subsidiary interests are deducted and shown as the “Non-Controlling Interests” account group in the equity account group of the consolidated balance sheet. - Purchase and sale transactions between the Parent Company and its subsidiaries and the profits and losses arising from these transactions are canceled in the consolidated statement of comprehensive income. Said canceled profits and losses include securities, inventories, tangible and intangible assets, financial investments and other assets that are subject to purchase and sale among the partners subject to consolidation. Non-Controlling Share Purchases In each business combination, the Group measures the non-controlling interests in the acquiree using one of the following methods. - at fair value or - The proportionate share of the acquiree’s net identifiable assets in their recognized amount, generally at fair value. Changes in the Group’s shares in subsidiaries that do not result in a loss of control are accounted for as a partnership transaction with partners. Adjustments to non-controlling interests are calculated over the proportional amount of the net asset value of the subsidiary. Goodwill is not adjusted and is not recognized as a gain or loss in profit or loss. Subsidiaries are businesses controlled by the Group. If the Group has the power to exercise more than 50% of the voting rights in companies as a result of the shares owned directly and/or indirectly, or although it does not have the power to vote more than 50%, it has the effect of actual control over the financial and operating policies. If it has the authority and power to control its policies in line with the Group’s interests, the relevant company is included in the consolidation. Changes in Capital Share of Existing Subsidiary of the Parent Company Changes in the equity interest of the parent’s subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the parent’s and non-controlling interests are adjusted to reflect changes in the subsidiary’s interest. The difference between the adjustment for non-controlling interests and the fair value of the consideration received or paid is recognized directly in equity as the Parent’s share.