CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENCED CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH
BİZİM TOPTAN SATIŞ MAĞAZALARI A.Ş. AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY - 31 MARCH 2024 AND INDEPENDENT AUDITOR'S REPORT
BİZİM TOPTAN SATIŞ MAĞAZALARI A.Ş. AND ITS SUBSIDIARIES
INDEX | ........................................................................................................................................... | PAGE |
CONDENCED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 1-2 | |
CONDENCED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND | ||
OTHER COMPREHENSIVE INCOME | 3 | |
CONDENCED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 4 | |
CONDENCED CONSOLIDATED STATEMENT OF CASH FLOWS | 5 | |
NOTES TO THE CONDENCED CONSOLIDATED FINANCIAL STATEMENTS | 6-40 | |
NOTE 1 | ORGANIZATION AND OPERATIONS OF THE GROUP | 6 |
NOTE 2 | BASES OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS | 7-14 |
NOTE 3 | BUSINESS COMBINATIONS | 14 |
NOTE 4 | CASH AND CASH EQUIVALENTS | 15 |
NOTE 5 | FINANCIAL LIABILITIES | 15-16 |
NOTE 6 | TRADE RECEIVABLES AND PAYABLES | 16-17 |
NOTE 7 | OTHER RECEIVABLES AND PAYABLES | 17 |
NOTE 8 | INVENTORIES | 17 |
NOTE 9 | PREPAID EXPENSES AND DEFERRED INCOMES | 18 |
NOTE 10 | TANGIBLE ASSETS AND RIGHT OF USE ASSETS | 19-22 |
NOTE 11 | INTANGIBLE ASSETS | 23-24 |
NOTE 12 | PROVISIONS. CONTINGENT ASSETS AND LIABILITIES AND COMMITMENTS | 25-27 |
NOTE 13 | PAYABLES RELATED TO EMPLOYEE BENEFITS | |
AND PROVISIONS FOR EMPLOYEE BENEFITS | 27-28 | |
NOTE 14 | OTHER ASSETS AND LIABILITIES | 28 |
NOTE 15 | SHAREHOLDERS' EQUITY | 28-29 |
NOTE 16 | REVENUE AND COST OF SALES | 30 |
NOTE 17 | GENERAL ADMINISTRATIVE EXPENSES MARKETING. SALES AND | |
DISTRIBUTION EXPENSES | 31 | |
NOTE 18 | EXPENSES BY NATURE | 31 |
NOTE 19 | OTHER OPERATING INCOME/EXPENSES | 31-32 |
NOTE 20 | INCOME/EXPENSE RELATED TO INVESTING ACTIVITIES | 32 |
NOTE 21 | FINANCE EXPENSES | 32 |
NOTE 22 | INCOME TAXES (DEFERRED TAX ASSETS AND LIABILITIES) | 32-34 |
NOTE 23 | EARNINGS PER SHARE | 34 |
NOTE 24 | BALANCES AND TRANSACTIONS WITH RELATED PARTIES | 35-40 |
NOTE 25 | NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS | 40 |
NOTE 26 | EVENTS AFTER REPORTING DATE | 40 |
OTHER INFORMATIONS | ||
APPENDIX SUPPLEMENTARY OTHER INFORMATIONS | 41-43 |
BİZİM TOPTAN SATIŞ MAĞAZALARI A.Ş. AND ITS SUBSIDIARIES
CONDENCED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2024 AND 31 DECEMBER 2023
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of purchasing power of the TRY at 31 March 2024 unless otherwise indicated.)
Restated(*) | |||||
Audited | Audited | Audited | |||
31 March | 31 December | 31 December | |||
Assets | Notes | 2024 | 2023 | 2022 | |
Current Assets | 5,863,486,648 | 5,863,982,272 | 7,869,083,505 | ||
Cash and Cash Equivalents | 4 | 747,784,460 | 1,041,472,155 | 1,318,853,564 | |
Trade Receivables | 1,346,383,654 | 1,554,920,725 | 1,906,975,255 | ||
Due from Related Parties | 6, 24 | 45,970,137 | 28,424,448 | 50,622,866 | |
Due from Non-Related Parties | 6 | 1,300,413,517 | 1,526,496,277 | 1,856,352,389 | |
Other Receivables | 60,341,284 | 14,228,226 | 298,553,919 | ||
Other Receivables from-Related Parties | 7.24 | 53,078,895 | 4,879,037 | 292,363,906 | |
Other Receivables from Non-Related Parties | 7 | 7,262,389 | 9,349,189 | 6,190,013 | |
Inventories | 8 | 3,287,855,592 | 2,615,310,142 | 3,847,753,278 | |
Prepaid Expenses | 9 | 191,919,525 | 444,050,336 | 203,687,343 | |
Current Income Tax Assets | 9,314,713 | 10,284,200 | 71,365,347 | ||
Other Current Asset | 219,887,420 | 183,716,488 | 221,894,799 | ||
Non-Current Assets | 4,804,242,576 | 4,797,204,933 | 3,868,245,958 | ||
Other Receivables | 13,199,429 | 14,478,894 | 24,833,463 | ||
Other Receivables from Non-Related Parties - UV | 7 | 13,199,429 | 14,478,894 | 24,833,463 | |
Tangible Assets | 10 | 2,047,608,574 | 2,107,915,746 | 1,845,462,082 | |
Right of Use Assets | 10 | 1,994,522,057 | 1,898,437,307 | 1,323,481,640 | |
Intangible Assets | 11 | 322,596,982 | 337,537,437 | 320,938,510 | |
Prepaid Expenses - UV | 9 | 674,787 | 829,044 | 17,063,432 | |
Deferred Tax Asset | 22 | 425,640,747 | 438,006,505 | 336,466,831 | |
Total Assets | 10,667,729,224 | 10,661,187,205 | 11,737,329,463 |
(*) Restating effects are described in Note 2.
The accompanying notes are an integral part of these consolidated financial statements.
1
BİZİM TOPTAN SATIŞ MAĞAZALARI A.Ş. AND ITS SUBSIDIARIES
CONDENCED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2024 AND 31 DECEMBER 2023
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of purchasing power of the TRY at 31 March 2024 unless otherwise indicated.)
Restated(*) | ||||
Audited | Audited | Audited | ||
31 March | 31 December | 31 December | ||
Liabilities | Notes | 2024 | 2023 | 2022 |
Current Liabilities | 7,111,439,592 | 6,926,788,787 | 8,255,549,376 | |
Short-term Borrowings | 399,434,755 | 394,276,086 | 241,744,505 | |
Financial Lease Obligations | 5 | - | - | 2,046,243 |
Lease Liabilities due to Related Parties | 5 | 22,530,944 | 13,838,060 | 570,216 |
Lease Liabilities due to Non-Related Parties | 5 | 376,903,811 | 380,438,026 | 239,128,046 |
Trade Payables | 6,064,607,343 | 5,920,437,842 | 7,294,423,614 | |
Due to Related Parties | 6.24 | 1,927,672,042 | 1,838,339,036 | 1,867,006,339 |
Due to Non-Related Parties | 6 | 4,136,935,301 | 4,082,098,806 | 5,427,417,275 |
Other Payables | 9,639,579 | 9,637,426 | 3,748,641 | |
Other payables due to related parties | 9,639,579 | 8,672,314 | 3,025,166 | |
Other payables due to third parties | - | 965,112 | 723,475 | |
Liabilities for Employee Benefits | 13 | 225,183,253 | 157,456,480 | 153,404,804 |
Deferred Income | 9 | 62,070,630 | 82,693,181 | 164,902,480 |
Current Income Tax Liabilities | - | - | 18,206,423 | |
Short-term Provisions | 291,920,803 | 304,656,958 | 345,754,052 | |
Provision for Employee Benefits | 13 | 110,538,737 | 144,179,504 | 157,966,274 |
Other Short-term Provisions | 12 | 181,382,066 | 160,477,454 | 187,787,778 |
Other Current Liabilities | 14 | 58,583,229 | 57,630,814 | 33,364,857 |
Other Current Liabilities to Related Parties | 9,209,957 | 16,369,501 | - | |
Other Current Liabilities to Non-related Parties | 49,373,272 | 41,261,313 | 33,364,857 | |
Non-Current Liabilities | 1,528,831,894 | 1,469,453,833 | 1,140,907,404 | |
Long-term Borrowings | 766,783,847 | 739,155,092 | 415,098,208 | |
Lease Liabilities due to Related Parties | 5 | 74,324,866 | 46,599,560 | 1,431,486 |
Lease Liabilities due to Non-Related Parties | 5 | 692,458,981 | 692,555,532 | 413,666,722 |
Other Payables | 22,259,382 | 26,676,941 | 46,484,409 | |
Other payables due to related parties | 22,259,382 | 26,676,941 | 46,484,409 | |
Long-term Provisions | 208,836,044 | 204,632,595 | 254,424,756 | |
Provision for Employee Benefits | 13 | 208,836,044 | 204,632,595 | 254,424,756 |
Deferred tax liability | 529,285,954 | 494,055,000 | 393,277,517 | |
Deferred Income | 9 | 1,666,667 | 4,934,205 | 31,622,514 |
Equity | 2,027,457,738 | 2,264,944,585 | 2,340,872,683 | |
Shareholders' Equity | 2,016,523,129 | 2,248,201,180 | 2,347,008,175 | |
Share Capital | 15 | 80,476,074 | 80,476,074 | 60,000,000 |
Capital adjustment differences | 671,207,134 | 671,207,134 | 668,122,695 | |
Treasury shares | (93,987,242) | (93,987,242) | (93,987,242) | |
Share premiums | 917,692,384 | 917,692,384 | 917,692,384 | |
Other Comprehensive Expense not to be | ||||
Reclassified to Profit or Loss | (104,583,561) | (93,229,549) | (11,774,484) | |
Defined benefit plans remeasurement losses | (104,583,561) | (93,229,549) | (11,774,484) | |
Restricted Reserves Appropriated from Profits | 15 | 159,032,537 | 159,032,537 | 138,611,751 |
Impact of business combinations under common control | 15 | 414,871,739 | 414,871,739 | 438,432,252 |
Retained Earnings | 192,138,103 | 111,660,536 | (563,901,465) | |
Net Profit for the Year | 15 | (220,324,039) | 80,477,567 | 793,812,284 |
Non-Controlling Interests | 10,934,609 | 16,743,405 | (6,135,492) | |
Total Liabilities | 10,667,729,224 | 10,661,187,205 | 11,737,329,463 |
(*) Restating effects are described in Note 2.
The accompanying notes are an integral part of these consolidated financial statements.
2
BİZİM TOPTAN SATIŞ MAĞAZALARI A.Ş. AND ITS SUBSIDIARIES
CONDENCED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIODS 1 JANUARY - 31 MARCH 2024 AND 2023
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of purchasing power of the TRY at 31 March 2024 unless otherwise indicated.)
Restated(*) | |||
Audited | Audited | ||
1 January- | 1 January- | ||
31 March | 31 March | ||
Profit or Loss | Note | 2024 | 2023 |
Revenue | 16 | 7,889,567,315 | 9,242,218,285 |
Cost of Sales (-) | 16 | (6,872,811,982) | (8,441,126,182) |
Gross Profit | 1,016,755,333 | 801,092,103 | |
Marketing Expenses (-) | 17, 18 | (1,057,917,563) | (945,853,056) |
General Administrative Expenses (-) | 17, 18 | (259,755,608) | (204,770,505) |
Other Income from Operating Activities | 19 | 412,211,699 | 88,058,073 |
Other Expenses from Operating Activities (-) | 19 | (743,047,103) | (360,686,413) |
Operating Profit | (631,753,242) | (622,159,798) | |
Income from Investing Activities | 20 | 92,160,482 | 72,316,992 |
Expense from Investing Activities (-) | 20 | (35,649) | (487,635) |
Profit Before Financial Expenses (-) | (539,628,409) | (550,330,441) | |
Financial Expenses (-) | 21 | (299,475,629) | (168,311,816) |
Monetary gain | 665,650,550 | 809,854,256 | |
Profit Before Tax from Continued Operations | (173,453,488) | 91,211,999 | |
Tax Income from Continued Operations (-) | (51,651,291) | 4,806,740 | |
Current Tax Expense | 22 | - | (4,882,047) |
Deferred Tax Income | 22 | (51,651,291) | 9,688,787 |
Net Profit for The Year | (225,104,779) | 96,018,739 | |
Net profit attributable to | |||
Non-controlling interest | (4,780,740) | (2,601,424) | |
Equity holders of parent | (220,324,039) | 98,620,163 | |
Earnings per share (TRY) | 23 | (2,738) | 1,225 |
Other Comprehensive Expense | (11,354,012) | (27,631,071) | |
Defined benefit plans re-measurement losses | 15 | (15,408,590) | (34,773,146) |
Deferred Tax Income Related to Items not to be Reclassified to Profit or Loss | 22 | 4,054,578 | 7,142,075 |
Total Other Comprehensive Income | (236,458,791) | 68,387,668 | |
Distribution of total other comprehensive income | |||
Non-controlling interest | (5,808,796) | 1,621,267 | |
Equity holders of parent | (230,649,995) | 66,766,401 |
(*) Restating effects are described in Note 2.
The accompanying notes are an integral part of these consolidated financial statements.
3
BİZİM TOPTAN SATIŞ MAĞAZALARI A.Ş. AND ITS SUBSIDIARIES
CONDENCED CONSOLIDATED STATEMENTS OF CHANGE IN EQUITY FOR THE PERIODS 1 JANUARY - 31 MARCH 2024 AND 2023
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of purchasing power of the TRY at 31 March 2024 unless otherwise indicated.)
Other | |||||||||||||
Comprehensive | |||||||||||||
Expense not to be | |||||||||||||
Reclassified to Profit | Retained earnings/ | ||||||||||||
or Loss | accumulated losses | ||||||||||||
Impact of | |||||||||||||
Restricted | business | ||||||||||||
Capital | Reserves | combinations | Defined benefit plans | ||||||||||
Share | adjustment | Appropriated | Repurchased | Share | under common | remeasurement | Retained | Net Profit for | Equity of the | Non-Controlling | |||
Notes | Capital | differences | from Profits | shares (-) | premiums | control | losses | Earnings | the Year | parent company | Interests | Total Equity | |
Balances at 1 January 2023 (Previously reported) | 60,000,000 | 668,122,695 | 123,470,652 | (93,987,242) | - | - | (7,647,916) | 918,336,310 | 579,656,962 | 2,247,951,461 | 93,952 | 2,248,045,413 | |
Transactions under common control | - | - | 15,141,099 | - | 917,692,384 | 438,432,252 | (4,126,568) | (1,482,237,775) | 214,155,322 | 99,056,714 | (6,229,444) | 92,827,270 | |
Balances at 1 January 2023 (Restated) | 60,000,000 | 668,122,695 | 138,611,751 | (93,987,242) | 917,692,384 | 438,432,252 | (11,774,484) | (563,901,465) | 793,812,284 | 2,347,008,175 | (6,135,492) | 2,340,872,683 | |
Transfers | 15 | - | - | - | - | - | - | - | 793,812,284 | (793,812,284) | - | - | - |
Total comprehensive income | 15 | - | - | - | - | - | - | (27,631,071) | - | 98,620,163 | 70,989,092 | 1,621,267 | 72,610,359 |
Balances at 31 March 2023 | 60,000,000 | 668,122,695 | 138,611,751 | (93,987,242) | 917,692,384 | 438,432,252 | (39,405,555) | 229,910,819 | 98,620,163 | 2,417,997,267 | (4,514,225) | 2,413,483,042 | |
Balances at 1 January 2024 | 80,476,074 | 671,207,134 | 159,032,537 | (93,987,242) | 917,692,384 | 414,871,739 | (93,229,549) | 111,660,536 | 80,477,567 | 2,248,201,180 | 16,743,405 | 2,264,944,585 | |
Transfers | 15 | - | - | - | - | - | - | - | 80,477,567 | (80,477,567) | - | - | - |
Total comprehensive income | 15 | - | - | - | - | - | - | (11,354,012) | - | (220,324,039) | (231,678,051) | (5,808,796) | (237,486,847) |
Balances at 31 March 2024 | 80,476,074 | 671,207,134 | 159,032,537 | (93,987,242) | 917,692,384 | 414,871,739 | (104,583,561) | 192,138,103 | (220,324,039) | 2,016,523,129 | 10,934,609 | 2,027,457,738 |
The accompanying notes are an integral part of these consolidated financial statements.
4
BİZİM TOPTAN SATIŞ MAĞAZALARI A.Ş. AND ITS SUBSIDIARIES
CONDENCED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS 31 MARCH 2024 AND 2023
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of purchasing power of the TRY at 31 March 2024 unless otherwise indicated.)
Restated(*) | |||
Audited | Audited | ||
1 January - | 1 January - | ||
Notes | 31 March 2024 | 31 March 2023 | |
A. Cash Flows from Operating Activities | 202,707,295 | 381,922,801 | |
Net Profit for the period | (225,104,779) | 96,018,739 | |
Adjustments to reconcile net profit to net cash | |||
Adjustments for depreciation and amortisation expense | 10.11 | 257,313,196 | 191,778,632 |
Adjustments related to provisions | 12.13 | 85,537,667 | 21,042,782 |
Provision for impairment of trade receivable allowance | 6 | 10,995,473 | 6,729,733 |
Provision for impairment of inventories | 8 | (3,642,668) | 4,686,674 |
Loss on sale of fixed assets, net | 20 | 1,540,560 | 572,065 |
Adjustment for profit/(loss) reconciliation | (304,251,004) | (171,368,539) | |
Adjustments related to interest (income)/expense | 20.21 | 224,919,344 | 97,285,254 |
Adjustment for income/(expense) tax expense | 22 | 51,651,290 | (13,887,242) |
Adjustments for monetary loss/(gain) | 78,374,348 | 401,129,160 | |
Changes in working capital | 135,954,055 | (106,871,355) | |
Changes in trade receivables | 102,987,086 | 299,571,782 | |
Changes in inventories | (668,902,782) | (539,601,703) | |
(Increase)/decrease in other receivables related to operations | (31,835,184) | (152,075,364) | |
Increase in prepaid expenses | 252,285,076 | 67,396,279 | |
Changes in trade payables | 391,113,598 | 63,566,832 | |
(Increase)/decrease in other payables related to operations | 90,306,261 | 154,270,819 | |
Cash generated from operating activities | 313,287,482 | 527,115,903 | |
Taxes returns /(paid) | - | - | |
Employee benefits paid | 13 | (110,580,187) | (145,193,102) |
B. Cash Flows from Investing Activities | 23,848,918 | (11,329,290) | |
Proceeds from sale of tangible assets | 10,11,20 | (75,107) | 960,296 |
Cash outflows of purchases of tangible and intangible assets | 10,11,20 | (50,632,260) | (83,316,148) |
Interest received | 20 | 74,556,285 | 71,026,562 |
C. Cash Flows from Financing Activities | (383,898,944) | (142,608,489) | |
Cash outflows/inflows from borrowings | (48,199,858) | 72,979,522 | |
Cash outflows from payments of borrowings due from leasing agreements | 5 | - | (499,724) |
Cash outflows from payments of borrowings due from lease liabilities | (110,944,904) | (107,576,870) | |
Interest paid | 5.21 | (224,754,182) | (107,511,417) |
D.Monatary gain/loss effect on cash and cash equivalents | (136,344,964) | (623,232,556) | |
Net decrease in cash and cash equivalents (A+B+C+D) | 4 | (293,687,695) | (395,247,534) |
E. Cash and cash equivalents at the beginning of the year | 4 | 1,041,472,155 | 1,318,853,564 |
Cash and cash equivalents at the end of the year (A+B+C+D+E) | 4 | 747,784,460 | 923,606,030 |
The accompanying notes are an integral part of these consolidated financial statements.
5
BİZİM TOPTAN SATIŞ MAĞAZALARI A.Ş. AND ITS SUBSIDIARIES
NOTES TO THE CONDENCED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 31 MARCH 2024
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of purchasing power of the TRY at 31 March 2024 unless otherwise indicated.)
1. ORGANIZATION AND OPERATIONS OF THE GROUP
Bizim Toptan Satış Mağazaları A.Ş. (the "Company"). was established in 2001 and registered in Istanbul in accordance with Turkish Commercial Code. The head office of the Company is located in Kuşbakışı Cad. No.19 Altunizade-Üsküdar/İstanbul.
The main field of activity of the Company and its subsidiaries ("Group") is wholesale and retail sale of fast moving consumer goods to retail outlets such as grocery stores, markets, buffets, catering businesses, corporate customers, individual customers, commercial taxpayer real and legal persons.
As of 31 March 2024, the Company has 182 stores in 71 provinces (31 December 2023: 182 in 71 provinces). As of 31 March
2024, the number of personnel employed within the Group is 3,405 (31 December 2023: 3,417). As of 31 March 2024, the number of business partner markets included in the Group's goods supply business partnership system is 2,824 (31 December 2023: 2,747).
Yıldız Holding A.Ş. is the main shareholder of the Group and the party holding the main control. Yıldız Holding A.Ş. is controlled by the Ülker family. Group shares have been traded on Borsa Istanbul since February 3, 2011.
As of 31 March 2024, the names and percentages of the shareholders of the Group's share capital are as follows:
31 March | 31 December | |||
Name of the Shareholders (*) | (%) | 2024 | (%) | 2023 |
Yıldız Holding A.Ş. | 66.59 | 53,587,365 | 66.59 | 53,587,365 |
Public quotation | 33.41 | 26,888,709 | 33.41 | 26,888,709 |
100 | 80,476,074 | 100 | 80,476,074 |
- Organized according to partnership structure and Central Registry Agency data published in KAP.
Subsidiary company
Direct and indirect effective ownership rates %
Subsidiary company | 31 March 2024 | 31 December 2023 |
g2mEKSPER Satış ve Dağıtım Hizmetleri A.Ş.(*) | 90 | 90 |
Duru G2M Gıda Dağıtım Pazarlama ve Ticaret A.Ş.(**) | 90 | 90 |
SEÇ Marketçilik A.Ş. (***) | 90 | 90 |
- The Group acquired all shares of g2mEKSPER Satış ve Dağıtım Hizmetleri A.Ş., which is 90% owned by Yıldız Holding A.Ş., by issuing
capital worth 20,476,074 TL to Yıldız Holding on 29 December 2023.
- The Group has an indirect share in the relevant company.
- SEÇ Marketçilik A.Ş. in which Bizim Toptan Satış Mağazaları A.Ş. owns 90% of the capital and has a capital of TRY50,000 was registered on 19 August 2020 and its establishment procedures were completed.
The company and its subsidiary will be referred to as the Group.
Approval of Financial Statements:
The consolidated financial statements have been presented for the approval of the Board of Directors and given authority to publish as of 10 June 2024. General Assembly has the right to change these consolidated financial statements.
6
BİZİM TOPTAN SATIŞ MAĞAZALARI A.Ş. AND ITS SUBSIDIARIES
NOTES TO THE CONDENCED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 31 MARCH 2024
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of purchasing power of the TRY at 31 March 2024 unless otherwise indicated.)
2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
2.1 Basis of the presentation
The consolidated financial statements are prepared in accordance with Turkish Financial Reporting Standards ("TFRS") published by Public Oversight Accounting and Auditing Standards Authority ("POA") as set out in the Communiqué numbered II-14.1 "Communiqué on Principles of Financial Reporting in Capital Markets" published in the Official Gazette numbered 28676 on 13 June 2013. TFRSs consist of standards and interpretations which are published as Turkish Accounting Standards ("TAS"), Turkish Financial Reporting Standards, interpretations of TAS and interpretations of TFRS.
Consolidated financial statements has presented in accordance with the formats specified in the "Announcement on TMS Taxonomy" published by POA on October 4, 2022, and the "Financial Statement Examples and User Guide".
Statement of Compliance
The consolidated financial statements are prepared in accordance with Turkish Financial Reporting Standards ("TFRS") published by Public Oversight Accounting and Auditing Standards Authority ("POA") as set out in the Communiqué numbered II -14.1 "Communiqué on Principles of Financial Reporting in Capital Markets" published in the Official Gazette numbered 28676 on 13 June 2013. TFRSs consist of standards and interpretations which are published as Turkish Accounting Standards ("TAS"), Turkish Financial Reporting Standards, interpretations of TAS and interpretations of TFRS.
Restatement of financial statements in hyperinflationary periods
The Company prepared its financial statements as of and for the year ended 31 March 2024 by applying TAS 29 "Turkish Financial Reporting in Hyperinflationary Economies" in accordance with the announcement made by POA on 23 November 2023 and the "Implementation Guide on Financial Reporting in Hyperinflationary Economies". In accordance with the standard, that financial statements prepared in the currency of a hyperinflationary economy should be stated in terms of the purchasing power of that currency at the balance sheet date and for the purpose of comparison with prior period financial statements, comparative information is expressed in terms of the measuring unit current at the end of the reporting period. Therefore, the Company has also presented its financial statements as of 31 December 2022 on a purchasing power basis as of 31 December 2023.
In accordance with the CMB's decision dated 28 December 2023 and numbered 81/1820, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards are required to apply inflation accounting by applying the provisions of IAS 29 to their annual financial statements for the accounting periods ending on December 31, 2023.
7
BİZİM TOPTAN SATIŞ MAĞAZALARI A.Ş. AND ITS SUBSIDIARIES
NOTES TO THE CONDENCED FINANCIAL STATEMENTS FOR THE YEAR
ENDED 31 MARCH 2024
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of purchasing power of the TRY at 31 March 2024 unless otherwise indicated.)
2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)
2.1 Basis of the presentation (Continued)
Restatements in accordance with TAS 29 have been made using the adjustment factor derived from the Consumer Price Index ("CPI") in Turkey published by the Turkish Statistical Institute. As at 31 December 2023, the indices and adjustment factors used in the restatement of the financial statements are as follows:
Date | Index | Correction Coefficient | Three-year Correcting Inflation Rates | |
31 | March 2024 | 2,139.47 | 1.00000 | 309% |
31 | December 2023 | 1,859.38 | 1.15064 | 268% |
31 | March 2023 | 1,269.75 | 1.68495 | 182% |
31 | December 2022 | 1,128.45 | 1.89594 | 156% |
The main components of the Company's restatement for financial reporting purposes in hyperinflationary economies are as follows:
- The financial statements for the current period presented in TL are expressed in terms of the purchasing power of TL at the balance sheet date and the amounts for the previous reporting periods are restated in accordance with the purchasing power of TL at the end of the reporting period.
- Monetary assets and liabilities are not restated as they are currently expressed in terms of the measuring unit current at the balance sheet date. Where the inflation-adjusted amounts of non-monetary items exceed the recoverable amount or net realizable value, the provisions of TAS 36 and TAS 2 have been applied, respectively.
- Non-monetaryassets, liabilities and equity items that are not expressed in the current purchasing power at the balance sheet date are restated by applying the relevant conversion factors.
- All items in the statement of comprehensive income, except for "the effects of non-monetary items in the balance sheet on the statement of comprehensive income", have been restated by applying the multipliers calculated over the periods in which the income and expense accounts were initially recognized in the financial statements.
- The effect of inflation on the Company's net monetary asset position in the current period is recognized in the statement of income in the net monetary position loss account.
2.2 Determination of Functional Currency
Financial statements of the Group are presented in the currency of the primary economic environment in which the entity operates (its functional currency). The results and financial position of the entity is expressed in TRY which is the functional and presentation currency of the Group.
2.3 Going Concern
The consolidated financial statements of the Group have been prepared on the basis of the going concern.
2.4 Principles Regarding Consolidation
Consolidated financial statements include financial statements of entities controlled by the Group and its subsidiaries.
Control is obtained by the Group, when the following terms are met;
- Having power over the invested company/assets
- Is exposed, or has rights, to variable returns from its involvement with the investee; and
- Has the ability to use its power to affect its returns.
The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.
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