Milli Re 2025 Annual Report

2.22 Leasing transaction Tangible assets acquired through leases are recorded as assets in the Company’s balance sheet, while the lease obligations are recognized as other financial liabilities under finance lease payables. In the determination of the related assets and liabilities, the lower of the fair value of the leased asset and the present value of leasing payments is considered. Financial costs of leasing agreements are expanded in lease periods at a fixed interest rate. If there is impairment in the value of the assets obtained through lease and in the expected future benefits, the leased assets are valued with net realisable value. Depreciation for assets obtained through lease is calculated in the same manner as tangible assets. Right-of-use assets The Company recognises right-of-use assets at the commencement date of the lease (for example, as of the date on which the relevant asset is eligible for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of the right-of-use asset includes the following: (a) the initial measurement amount of the lease obligation, (b) the amount paid from all lease payments made on or before the actual commencement of the lease, deducting all rental incentives received, and (c) All initial direct costs incurred by the Company. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment assessment. Lease liabilities At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. Pay payouts included in the measurement of the lease liability on the actual commencement date of the lease consist of the following payments, which will be made for the right of use of the underlying asset during the lease term and which were not paid on the actual commencement date of the lease: (a) Fixed payments, (b) Variable rental payouts based on an index or rate, the first measurement of which is made using an index or rate at the actual start of the lease, (c) Amounts expected to be paid by the Company under residual value commitments (d) If the Company is reasonably confident that it will exercise the purchase option, the exercise price of this option and (e) Paying penalties related to the termination of the lease if the lease term indicates that the Company will exercise an option to terminate the lease. 141 Notes to the Unconsolidated Financial Statements As of December 31, 2025 Millî Reasürans Türk Anonim Şirketi GENERAL INFORMATION FINANCIAL RIGHTS PROVIDED TO THE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES RISKS AND ASSESSMENT OF THE GOVERNING BODY ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES RESEARCH & DEVELOPMENT ACTIVITIES FINANCIAL STATUS FINANCIAL INFORMATION (Currency: Turkish Lira (TRY)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish)