Dogan Sirketler Grubu : 01 October – 31 December (4th Quarter)

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Mersis Numaramız: 0-1460-0224-0500015

Key Audit Matters

How the key audit matter was addressed in

the audit

Dealer contract assets included intangible

assets

In line with the market strategy, the Group is

• Test in details using sampling method were

expanding its dealer network by signing contracts

performed on whether the payments to dealers

regarding intangible rights, utilization, advance

were recognized in accordance with the terms

sale support premiums, rent etc. with existing and

and conditions specified in the signed

new dealers. Based on these agreements with

agreements.

dealers, the accounting policies regarding

intangible assets are explained in Note 2.5.

• Payments recognized for new dealer contracts

signed in 2022 were tested using the sampling

As of 31 December 2022, in the consolidated

method.

statement of financial position, the recognised

dealer contract assets under intangible assets were

• Budgeted sales figures per dealer contract,

TRY196,399 (Note 16). Since these dealer

prepared by Group management, were obtained

investment contract assets represent a significant

and comparing with 2022 actual figures,

share of the consolidated financial statements, and

budgeted figures were assessed for possible

the impairment tests involve estimations such as

impairment on dealer contract assets.

sales amount, the accuracy of this matter in the

financial statements is important for our audit and

it has been evaluated as a key audit matter.

Key Audit Matters

How the key audit matter was addressed in

the audit

Investment properties measured at fair

value

As explained in Note 14, as of 31 December 2022,

• Valuation reports prepared by the independent

the Group's investment properties, which have the

property valuers assigned by the Group were

carrying value of TRY2,640,995 thousand and

obtained and the property valuation

represent a significant share of total assets,

accreditations and licences of these institutions

comprise of land and buildings.

granted by the Capital Markets Board are

checked based on the Independent Audit

The accounting method used by Group

Standards.

management for investment properties is the "fair

value method", as described in Note 2.2. Fair value

• Deeds and ownership ratios of investment

of these assets are determined by independent

properties were tested on a sample basis.

valuers licensed by the Capital Markets Board (the

"CMB") and are recognised in the consolidated

• We compared the consistency of the inputs

financial statements after being assessed by Group

which have a significant impact on the property

management. Fair values of investment properties

value determined and were stated in the

depend on the valuation method used as well as the

valuation reports, information of rentable area

input and assumptions used in the valuation

square meter and unit rent values, against

model. Fair values are directly affected by factors

observable market prices, and then tested

such as market conditions, specific characteristics,

whether the appraised values are within an

physical condition and the geographic location of

acceptable range.

each investment property.

The reason for our focus on this area:

• Inputs such as rental income, duration of lease

agreements, occupancy rates and expenses,

• The quantitative importance of the investment

which are used in the valuation reports and have

a significant impact on the real estate value,

properties on the consolidated financial

were tested.

statements,

• When determining the fair values of the

• The assumptions used by the appraisers in their

valuations, whether the appraised values such as

investment properties, methods such as the

inflation and the real discount rate are within an

benchmarking analysis approach, cost approach

acceptable range were evaluated together with

and direct capitalisation approach are used, and

our experts.

these methods include variables that affect the

fair values.

• Fair values stated in the valuation reports were

compared with the disclosures in the

consolidated financial statements to assess if the

values in the disclosures and accounting records

are consistent with the valuation report and the

disclosures are sufficient based on the

requirements of TFRS.