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3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Statement of Compliance
The consolidated financial statements of Borusan Holding A.Ş. and its Subsidiaries have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as
issued by the International Accounting Standards Board (“IASB”).
3.2 Basis of Preparation
The consolidated financial statements have been prepared on a historical cost basis, except for land, buildings, flat steel and steel pipe machinery are carried at revalued amounts (Note 11);
and certain financial instruments and derivative financial instruments which are carried at fair values.
3.3 Basis of Consolidation
The consolidated financial statements comprise the financial statements of Borusan Holding A.Ş. and its Subsidiaries as at 31 December 2014 on the basis set out below:
Subsidiaries in which the Holding, directly or indirectly, has power to exercise control over their operations, have been consolidated. Control is evidenced when the Holding owns, directly
or indirectly through subsidiaries, more than half of the voting power of an entity.
Control also exists when the Holding owns half or less of the voting power of an entity when there is:
a) Power to govern the financial and operating policies of the entity under an agreement; or,
b) Power to appoint or remove the majority of the members of the board of the directors or equivalent governing body; or,
c) Power to cast the majority of votes at meetings of the board of directors or equivalent governing body.
Comparative Information and Restatement to Previous Year Consolidated Financial Statements
The consolidated financial statements of the Group are prepared comparatively with the previous period to identify the financial position and performance trends. In order to maintain
consistency, with current period consolidated financial statements, comparative information is reclassified and significant changes are disclosed if necessary.
Changes in accounting policies arising from the first time adaptation of a new IAS/IFRS are applied retrospectively or prospectively in accordance with the respective IASs/IFRSs
transition requirements, if any. Where there are no transition requirements for any changes or optional significant changes in accounting policies and identified accounting errors, those
are applied retrospectively and prior period financial statements are restated accordingly.
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)