Milli Re 2025 Annual Report

(b) The party is an associate of the Group; (c) The party is a joint venture in which the Group is a venturer; (d) The party is member of the key management personnel of the Group; (e) The party is a close member of the family of any individual referred to in (a) or (d); (f) The party is an entity that is controlled or significantly influenced by, or for which significant voting power in such entity resides with directly or indirectly, any individual referred to in (d) or; (g) The party is a post-employment benefit plan for the benefit of employees of the Group, or of any entity that is a related party of the Group. A related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price is charged. A number of transactions are entered into with related parties in the normal course of business. 2.30 Earnings per share Earnings per share presented in the income statement are calculated by dividing the net profit into the weighted average number of the outstanding shares throughout the financial year. Companies in Turkey can increase their capital by distributing “bonus shares” to shareholders from the prior years’ profit. Such “bonus share” distributions are considered as issued shares in the earnings per share calculations. Accordingly, weighted average number of the outstanding shares used in this calculation is found by considering the retrospective effects of the outstanding shares distributions. 2.31 Subsequent events Post-balance sheet events that provide additional information about the Group’s position at the balance sheet date (adjusting events) are reflected in the financial statements. Post-balance sheet events that are not adjusting events are disclosed in the notes when material. 2.32 Assets Held for Sale and Related Liabilities Property, plant, and equipment groups, including investment properties, are classified as assets held for sale when they are expected to be recovered through a sale transaction rather than through use or leasing. Liabilities directly associated with these assets are similarly grouped. Fixed assets or asset groups that meet the criteria for classification as held for sale are measured at the lower of their carrying amount and the fair value less costs to sell. No depreciation is charged on these assets. Assets held for sale are classified under the “Other Various Current Assets” item in the balance sheet. 2.33 The new standards, amendments and interpretations The accounting policies adopted in preparation of the consolidated financial statements as at December 31, 2025 are consistent with those of the previous financial year, except for the adoption of new and amended IFRS and IFRIC interpretations effective as of January 1, 2025. The effects of these standards and interpretations on the Company’s financial position and performance are explained in the relevant paragraphs. a. The new standards, amendments and interpretations which are effective as at December 31, 2025 are as follows: – 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. 259 Notes to the Consolidated 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)