BIRLESIM_2021_ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2021 ANNUAL REPORT 160 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) (k) Summary of Significant Accounting Policies (continued) Assets held for Sale Assets are classified as non-current assets held for sale when their carrying amount is intended to be recovered as a result of a sale transaction rather than through use. The sale of fixed assets held for sale is expected to occur within twelve months following the balance sheet date. Various events or circumstances may extend the completion time of the sale transaction beyond one year. If the delay is due to events or conditions beyond the control of the entity and there is sufficient evidence that the entity’s plan to sell the asset is in progress; Extending the time required to complete the sale does not preclude the asset from being classified as held for sale. Leases As a lessee At inception of a contract, the Group assesses whether a contract is, or contains a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, The Group assess whether: a) The contract involved the use of an identified asset - this may be specified explicitly or implicitly, b) The asset should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, the asset is not identifiedi, c) The Group has the right to obtain substantially all of the economic benefits from the use of an asset throughout the period of use; and d) The Group has the right to direct use of the asset. The Group concludes to have the right of use, when it is predetermined how and for what purpose the Group will use the asset. The Group has the right to direct use of asset if either: i. The Group has the right to operate (or to have the right to direct others to operate) the asset over its useful life and the lessor does not have the rights to change the terms to operate or; ii. The Group designed the asset (or the specific features) in a way that predetermines how and for what purpose it is used. The Group recognizes a right of use and a rent obligation in the consolidated financial statements at the date of the lease.