Milli Re 2025 Annual Report

c. Consider alignment with other public communications. If management has publicly detailed anticipated impacts, such as in an investor presentation, the IAS 8 financial statement disclosures should be consistent with these communications. d. Disclosures should be based on the information available through the date of issuance of the financial statements, not only the end of the reporting period. – IFRS 19 Subsidiaries without Public Accountability: Disclosures’ and amendment; effective from annual periods beginning on or after 1 January 2027.This new standard works alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. IFRS 19’s reduced disclosure requirements balance the information needs of the users of eligible subsidiaries’ financial statements with cost savings for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries. A subsidiary is eligible if: – it does not have public accountability; and – it has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards. IFRS 19 Subsidiaries without Public Accountability: Disclosures’; with these amendments, IFRS 19 reflects the changes to IFRS Accounting Standards that take effect up to 1 January 2027, when IFRS 19 will be applicable. These amendments help eligible subsidiaries by reducing disclosure requirements for Standards and amendments issued between February 2021 and May 2024, specifically: – IFRS 18 Presentation and Disclosure in Financial Statements; – Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7); – International Tax Reform-Pillar Two Model Rules (Amendments to IAS 12); – Lack of Exchangeability (Amendments to IAS 21); and – Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7). The Group has assessed the impact of the standards and amendments on its financial statements and has concluded that these changes do not have a significant effect beyond the implications of the IFRS 17 standard. The Group has established the necessary accounting policies under IFRS 17, and analyses and evaluations regarding the effects of the IFRS 17 standard on the financial statements are ongoing. IFRS 17 includes significant differences compared to the existing Insurance Accounting and Financial Reporting Legislation, particularly in terms of the measurement of insurance liabilities, the recognition of insurance revenue, and the presentation format. The Group is in the process of transitioning to IFRS 17, and at this stage, the quantitative effects of the transition on the financial statements for 2025 have not been finalized. The transition is expected to be significant, particularly in terms of the re-measurement of assets and/or liabilities associated with insurance and reinsurance contracts, the periods in which insurance income/expenses are recognized, and the impact of these changes on equity. 3 Important accounting estimates and provisions The notes given in this section are provided to addition/supplement the commentary on the management of insurance risk note 4.1 - Management of insurance risk and note 4.2 - Financial risk management. The preparation of consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected. 262 MİLLÎ REASÜRANS 2025 Annual Report Notes to the Consolidated 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)