MILLIRE ENG2024

Gains/losses arising from the disposal of the tangible assets are calculated as the difference between the net carrying value and the proceeds from the disposal of related tangible assets and reflected to the statement of income of the related period. Land is not depreciated due to its indefinite life. Depreciation is allocated based on the useful life of tangible assets at cost or revalued amounts of tangible assets by using the straight-line method basis. Maintenance and repair costs incurred in the ordinary course of the business are recorded as expense. There are no pledges, mortgages and other encumbrances on tangible fixed assets. There are no changes in accounting estimates that have significant effect on the current period or that are expected to have significant effect on the following periods. Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of tangible assets at cost. Depreciation rates and estimated useful lives are as follows: Tangible assets Estimated useful lives (years) Depreciation rates (%) Machinery and equipment 3 - 15 6,7 - 33,3 Vehicles 5 20,0 Other tangible assets (includes leasehold improvements) 5 20,0 Tangible assets acquired through financial leasing 4-5 20,0-25,0 2.6 Investment property Investment properties are held either to earn rentals and/or for capital appreciation or for both. In the event of investment property of first registration is measured on fair value including transaction costs after measured at cost. The changes which result of fair value valuation recognised in the income statement. Any gains or losses on the retirement or disposal of an investment property are recognized in profit or loss in the period of retirement or disposal. Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The fair value on the date of change in the usage is considered as cost in the reclassification recognition when investment property that measured with fair value is reclassified as a tangible asset. With the decision of the Board of Directors dated August 25, 2023, it was decided that the real estate assets held for operational and investment purposes, which are registered in the Company’s assets, would be transferred to Miltaş Turizm İnşaat Ticaret A.Ş., a 100% subsidiary of the Company, as capital through a partial demerger, in accordance with Articles 19 and 20 of the Corporate Tax Law and Articles 159 to 179 of the Turkish Commercial Code, based on the tax financial statements prepared according to the Tax Procedure Law (VUK). In return for the capital contribution, shares to be issued due to the capital increase will be allocated to the Company. As of December 31, 2023, the fair value of the real estate transferred is 4,613,156,000 TRY. 2.7 Intangible assets The Company’s intangible assets consist of computer software. Intangible assets are recorded at cost in compliance with the “TAS 38 - Accounting for intangible assets”. The cost of the intangible assets purchased before December 31, 2004 are restated from the purchasing dates to December 31, 2004, the date the hyperinflationary period is considered to be ended. The intangible assets purchased after this date are recorded at their historical costs. Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. 116 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) Notes to the Unconsolidated Financial Statements As of December 31, 2024 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish) MİLLİ RE