BIRLESIM_MUHENDISLIK 2023 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 170 Birleşim Mühendislik Isitma Soğutma Havalandirma Sanayi Ticaret A.Ş. and its Subsidiaries (Amounts are expressed in terms of purchasing power of Turkish Lira (“TL”) as of December 31, 2023 unless otherwise stated.) Notes to the Consolidated Financial Statements For the Year Ended 31 December 2023 2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued) (k) Summary of Significant Accounting Policies (Continued) Earnings per share Earnings per share disclosed in the consolidated statement of profit or loss is determined by dividing net income by the weighted average number of shares that have been outstanding during the year concerned. The company to existing shareholders from retained earnings and equity restatement differences distributing shares from the account Turkey shares (bonus shares) can increase their capital. In the calculation of earnings per share, such bonus shares are considered as issued shares. Therefore, the weighted average number of shares used in the calculation of earnings per share is obtained by considering the issued bonus shares retrospectively. (l) Significant Accounting Judgments, Estimates and Assumptions Provision for doubtful receivables Provisions for doubtful receivables reflect the amounts that management believes will cover future losses on receivables that exist as of the balance sheet date but have a risk of not being collected under current economic conditions. When evaluating whether receivables are impaired, past performances of the debtors, their credibility in the market, their performance from the balance sheet date to the approval date of the consolidated financial statements, and renegotiated conditions are also taken into account. In return for litigation While allocating provisions for group lawsuits, the possibility of losing the lawsuits and the liabilities that will arise in case of loss are evaluated by the Group management by obtaining the opinion of legal counsel. Group management determines the lawsuit provision amount based on the best estimates. (m) Reporting of Consolidated Financial Information by Segment The group operates in the fields of mechanical works, electrical installation works and construction equipment rental businesses and reports according to departments.