PASHA BANK ANNUAL REPOT 2024

EXPLANATIONS ON ACCOUNTING POLICIES (Continued) XV. EXPLANATIONS ON PROVISIONS AND CONTINGENT COMMITMENTS Provisions and contingent liabilities except for the financial instruments within the scope of the TFRS 9 or the provisions recognised in accordance with other standards such as TAS 12 and TAS 19 are accounted in accordance with the “Turkish Accounting Standard for Provisions, Contingent Liabilities and Contingent Assets” (TAS 37). Provisions are recognised when the Bank has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. The provision for contingent liabilities arising from past events should be recognised in the same period of occurrence in accordance with the “Matching principle”. When the amount of the obligation cannot be estimated and there is no possibility of an outflow of resources from the Bank, it is considered that a “Contingent” liability exists and it is disclosed in the related notes to the financial statements. XVI. EXPLANATIONS ON OBLIGATIONS RELATED TO EMPLOYEE RIGHTS Obligations related to employee benefits, such as severance pay and leave entitlements, are accounted for in accordance with the “Turkish Accounting Standard for Employee Benefits” (TAS 19). According to the applicable laws, the Bank is obligated to make a lump-sum payment to employees whose employment is terminated due to retirement, resignation, or other reasons not specified in the Labor Law. The provision for severance pay is calculated based on the estimated present value of future potential obligations arising from the retirement, termination of employment after completing at least one year of service, being called for military service, or death of all employees, in accordance with the Turkish Labor Law, and is reflected in the financial statements. In this context, the following actuarial assumptions have been used in the calculation of the total obligations. 31 December 2024 31 December 2023 Discount Rate (%) 3.79 1.56 Inflation Rate (%) 23.33 28.00 XVII. EXPLANATIONS ON TAXATION Corporate Tax The Bank is subject to the tax legislation and practices in force in Türkiye. Corporate tax is payable in one installment by the end of the fourth month following the end of the accounting period to which it relates. Corporations are required to calculate advance tax at the current rate on their quarterly financial profits, declare it until the 17 th day of the second month following the period and pay it until the evening of the 17 th day. Advance taxes paid during the year are offset against the corporate tax calculated on the annual corporate tax return for that year. In the event that there is an amount of advance tax paid despite the offset, this amount can be refunded in cash or offset against other financial debts. 151 Financial Information and Risk Management Review PASHA Yatırım Bankası A.Ş. Notes to the Unconsolidated Financial Statements As of and for the Year Ended 31 December 2024 (Continued) (Convenience translation of publicly announced financial statements originally issued in Turkish) (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)