BIRLESIM_2021_ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2021 ANNUAL REPORT 150 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) Accounting and Auditing Standards Authority for the Application of Turkish Accounting Standards, numbered 2018-1, Accounting for Business Combinations Subject to Joint Control; - Business combinations under common control are accounted for using the pooling of interest method; therefore, purchased assets and liabilities are carried at their pre-merger values ​and goodwill is not included in the consolidated financial statements. - While applying the aggregation of rights method, the consolidated financial statements have been corrected as if the merger had occurred as of the beginning of the reporting period in which joint control occurred between the Parent Company and Erde Mühendislik, and presented comparatively from the beginning of the reporting period in which joint control occurred. - Since it would be appropriate to look at it from the perspective of the parent when reflecting the business combinations under common control in the consolidated financial statements, the financial statements are reconstructed in accordance with the TFRS provisions, including merger accounting, as if the financial statements were prepared in accordance with TFRS on the date the company holding the control of the group took control of the companies under common control and afterwards. edited. In order to eliminate the possible asset-liability mismatch that may occur due to the business combination under common control, the “Effect of Mergers Including Joint Controlled Enterprises or Businesses” account is used as an offsetting account under equity. (ı) Change in the Accounting Policies Significant changes in accounting policies are applied retrospectively and the prior period financial statements are revised accordingly. The Group has not made any changes in its accounting policies in the current year. Financial statements for the year ending on 31 December 2021 have been prepared by using the accounting policies that are in consistency with the accounting policies applied in the preparation of the financial statements for the year ending on 31 December 2020. (i) Changes in Accounting Estimates and Errors The effect of a change in an accounting estimate shall be recognized prospectively in the period of the change, if the change affects that period only, or the period of the change and future periods, if the change affects both. Information on the changes in the Group’s accounting estimates in the current year is given in footnote 2.g. (j) New and revised Turkish Accounting Standards The accounting policies adopted in preparation of the consolidated financial statements as of 31 December 2021 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRIC interpretations effective as of January 1, 2021. The effects of these standards and interpretations on the Group’s financial position and performance have been disclosed in the related paragraphs. a) New and revised standards effective from 31 January 2021 Standards issued but not yet effective and not early adopted Some of the new standards, interpretations and amendments that have been published as of the reporting date but have not yet entered into force and are not early implemented by the Company, although early application is permitted, are as follows.