BIRLESIM_2022 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2022 FAALİYET RAPORU 141 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) 2.6 Changes and Errors in the Accounting Policies and Estimates (Continued) The accounting policies used in the preparation of the consolidated financial statements ended on 31 December 2022 are consistent with the accounting policies used in the preparation of the consolidated financial statements for the year ended 31 December 2021. 2.7 Netting/Offsetting Financial assets and liabilities are presented with their net values in the financial statements in the event that they have the right to legally clarify, if they can be paid or collected in the net or if the acquisition of the asset is realized simultaneously. 2.8 Summary of Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents comprise cash on hand, cash at banks and time deposits with maturities less than three months. Cash and cash equivalents are short-term highly liquid assets that are readily convertible to cash and that do not have a maturity of more than three months and have no risk of value loss. Related Parties Related parties are the person or entity associated with the entity that is preparing the consolidated financial statements (the reporting entity). (a) A person or a member of his immediate family shall be considered to be associated with the reporting entity if: The person concerned, i. in case of control or joint control over the reporting entity, ii. has a significant impact on the reporting entity, iii. is a member of the key management personnel of the reporting entity or a parent of the reporting entity. (b) If any of the following conditions exist, the entity shall be associated with the reporting entity: i. Where the entity and the reporting entity are members of the same group (i.e. each parent company, subsidiary and other subsidiary are associated with others). ii. Where the entity is an associate or joint venture of the other entity (or a member of a group of which the other entity is a member). iii. Both companies are joint ventures of the same third party. iv. If one entity is a joint venture of a third entity and the other entity is an associate of the third entity. v. Where an entity has a post-employment benefit plan for the employees of the reporting entity or of an entity associated with the reporting entity. If the reporting entity itself has such a plan, the sponsoring employers are also associated with the reporting entity. vi. In the event that the entity is controlled or jointly controlled by a person identified in article (a). vii Where a person identified in paragraph (i) of (a) has significant influence over the entity or is a member of the key management personnel of that entity (or the parent company of that entity). The transaction with the related party is the transfer of resources, services or obligations between the reporting entity and the related party, regardless of whether a price is charged.