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3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
3.24 Employee Benefits
(a) Defined Benefit Plan:
In accordance with existing social legislation in Turkey, the Group is required to make lump-sum termination indemnities to each employee whose employment is terminated due to
retirement or for reasons other than resignation or misconduct and who has completed at least one year of service with the Group companies.
Such defined benefit plan is unfunded. The cost of providing benefits under the defined benefit is determined using the “Projected Unit Credit Method” based upon estimates of
the Group’s obligations to personnel terminating their services and being eligible to receive such benefits, discounting using the current market yield at the balance sheet date on
government bonds. All actuarial gains and losses are recognized in the other comprehensive income as incurred.
(b) Defined Contribution Plan:
The Group pays contributions to the Social Security Institution of Turkey on a mandatory basis. The Group has no further payment obligations once the contributions have been paid.
The contributions are recognized as employee benefit expense when they are due.
3.25 Revenue Recognition
Revenue
Revenue is measured at the fair value of the consideration received or receivable. Sales are recognized upon delivery of products and customer acceptance, if any, or on the performance
of services. Revenue is reduced for estimated customer returns, rebates, and other similar allowances.
Sale of goods
Revenue from sale of goods is recognized when all the following conditions are satisfied:
• The Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
• The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
• The amount of revenue can be measured reliably;
• It is probable that the economic benefits associated with the transaction will flow to the Group; and
• The costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of Services
Revenue from rendering of services is recognized by reference to the stage of completion when it can be measured reliably. Where the contract outcome cannot be measured reliably,
revenue is recognized only to the extent of the expenses recognized that are recoverable.
BORUSAN HOLDING A.Ş. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014
(Currency - US Dollars (“USD”) unless otherwise indicated)