BIRLESIM_2022 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2022 FAALİYET RAPORU 137 Birleşim Mühendislik Isıtma Soğutma Havalandırma Sanayi Ticaret Anonim Şirketi and Its Subsidiaries (Currency in Turkish Lira (“TL”) unless otherwise stated). Notes to the Consolidated Financial Statements for the Year Ended 31 December 2022 2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued) 2.3 Basis of Consolidation (Continued) In cases where the Company does not have a majority voting right on the invested company/asset, it has control power over the invested company/asset if there is sufficient voting right to manage/manage the activities of the investment alone. The Company considers all relevant facts and circumstances in assessing whether the majority of the relevant investment in the relevant investment, including the following elements, is sufficient to provide control power: • Comparison of the voting rights of the Company and the voting rights of the other shareholders; • Potential voting rights held by the Company and other shareholders; • rights arising from other contractual agreements, and • Other incidents and conditions that may indicate whether the Company has the available power to manage the related activities (including voting at the previous general assembly meetings) when the Company is to be decided. Incorporation of a subsidiary in the scope of consolidation begins with the Company having control over the subsidiary and ceases to lose control. The income and expenses of the subsidiaries acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date of acquisition to the date of disposal. Each item of profit or loss and other comprehensive income is attributable to the owners of the parent company and to the non- controlling interests. Even if non-controlling interests result in a reverse balance, the total comprehensive income of the subsidiary is transferred to the shareholders of the parent company and to the non-controlling interests. If necessary, adjustments are made to the accounting policies of the subsidiary in order to be the same as the Group’s accounting policies. All intra-group assets and liabilities, shareholders’ equity, income and expenses and cash flows related to transactions between Group companies are eliminated on consolidation. 2.4 New and Revised Turkish Accounting Standards The accounting policies adopted in preparation of the consolidated financial statements as at December 31, 2022 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRS interpretations effective as of January 1, 2022 and thereafter. The effects of these standards and interpretations on the Group’s financial position and performance have been disclosed in the related paragraphs. a) The new standards, amendments and interpretations which are effective as at January 1, 2022 are as follows: Amendments to TFRS 3 - Reference to the Conceptual Framework In July 2020, POA issued Reference to the Conceptual Framework, which made amendments to TFRS 3 Business Combinations. The amendments updated TFRS 3 by replacing a reference to an old version of the Board’s Conceptual Framework for Financial Reporting with a reference to the latest version, which was issued in March 2018. The Group shall apply these amendments for annual periods beginning on or after 1 January 2022 with earlier application permitted. The amendment has no impact on the consolidated financial position and performance of the Group. Amendments to TAS 37 - Onerous Contracts - Cost of Fulfilling a Contract In July 2020, POA issued Onerous Contracts - Cost of Fulfilling a Contract, which made amendments to July 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.