BIRLESIM_2021_ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2021 ANNUAL REPORT 152 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) (j) New and revised Turkish Accounting Standards (continued) a) New and revised standards effective from 31 January 2021 (continued) Standards issued but not yet effective and not early adopted (continued) Property, Plant and Equipment-Proceeds before Intended Use (Amendments to TAS 16) (continued) The Group shall apply these amendments for annual periods beginning on or after 1 January 2022 with earlier application permitted. The amendments apply retrospectively, but only to items of Property, Plant and Equipment made available for use on or after the beginning of the earliest period presented in the financial statements in which the company first applies the amendments. The cumulative effect of applying the changes for the first time is recognized as an adjustment to the opening balance of retained earnings at the beginning of the earliest period presented or another appropriate component of equity. Onerous Contracts-Cost of Fulfilling a Contract (Amendments to TAS 37) In May 2020, IASB issued Onerous Contracts-Cost of Fulfilling a Contract, which made amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The amendments specify which costs an entity includes in determining the cost of fulfilling a contract for the purpose of assessing whether the contract is onerous. And then, TAS 37 amendment was issued on 27 July 2020 by POA to reflect these amendments. IASB developed amendments to TAS 37 to clarify that for the purpose of assessing whether a contract is onerous, the cost of fulfilling the contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts. The Group shall apply these amendments for annual periods beginning on or after 1 January 2022 with earlier application permitted. At the date of initial application, the cumulative effect of applying the amendments is recognised as an opening balance adjustment to retained earnings or other component of equity, as appropriate. The comparatives are not restated. Classification of Liabilities as Current or Non-current (Amendments to TAS 1) On 23 January 2020, IASB issued “Classification of Liabilities as Current or Non-Current” which amends IAS 1 Presentation of Financial Statements to clarify its requirements for the presentation of liabilities in the statement of financial position which are issued by POA on 12 March 2020 as amendments to TAS 1. The amendments clarify one of the criteria in TAS 1 for classifying a liability as non-current-that is, the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period. The amendments include: a. Specifying that an entity’s right to defer settlement must exist at the end of the reporting period; b. Clarifying that classification is unaffected by management’s intentions or expectations about whether the entity will exercise its right to defer settlement; c. Clarifying how lending conditions affect classification; and d. Clarifying requirements for classifying liabilities an entity will or may settle by issuing its own equity instruments.