Milli Re 2025 Annual Report

2.32 The new standards, amendments and interpretations The accounting policies adopted in preparation of the financial statements as at December 31, 2025 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRIC interpretations effective as of January 1, 2025. The effects of these standards and interpretations on the Company’s financial position and performance have been disclosed in the related paragraphs. a. Standards, amendments, and interpretations applicable as of 31 December 2025 – Amendments to IAS 21 - Lack of Exchangeability ; effective from annual periods beginning on or after 1 January 2025. An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative delay), and the transaction would take place through a market or exchange mechanism that creates enforceable rights and obligations. b. Standards, amendments, and interpretations that are issued but not effective as of 31 December 2025: – TFRS 17, ‘Insurance Contracts’ (“TFRS 17”); is applicable for annual reporting periods beginning on or after January 1, 2023. This standard replaces TFRS 4, which currently allows for a wide range of applications. TFRS 17 will fundamentally change the accounting for all businesses that issue insurance contracts and investment contracts with discretionary participation features. As a result of the legislative changes published by the Insurance and Private Pension Regulation and Supervision Agency (SEDDK) in the Official Gazette No. 32765 dated December 27, 2024, the implementation date for the TFRS 17 standard in the statutory financial statements of insurance companies was initially set as January 1, 2026. However, following further regulatory changes published by SEDDK in the Official Gazette No. 33108 on December 15, 2025, the implementation date for the TFRS 17 standard in the statutory financial statements of insurance, reinsurance and pension companies has been postponed to January 1, 2027. – Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments; effective from annual reporting periods beginning on or after 1 January 2026 (early adoption is available). These amendments: – clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system; – clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion; – add new note disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets); and – make updates to the note disclosures for equity instruments designated at Fair Value through Other Comprehensive Income (FVOCI). 150 MİLLÎ REASÜRANS 2025 Annual Report Notes to the Unconsolidated Financial Statements As of December 31, 2025 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TRY)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish)