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PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I. OF SECTION THREE
TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI
UNCONSOLIDATED FINANCIAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2015
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
XI. INFORMATION ON ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
Tangible assets acquired in consideration of receivables are accounted for in accordance with the requirements of the Communiqué on “Methods,
Principles for Purchase and Sale of Precious Metal and Sale of Goods and Immovables obtained in Return of Receivables” published in the Official
Gazette numbered 26333 and dated 1 November 2006 and these assets are subject to revaluation by no means.
A discontinued operation is a part of the Bank’s business classified as sold or held-for-sale. The operating results of the discontinued operations are
disclosed separately in the income statement.
The Bank has no discontinued operations.
XII. INFORMATION ON GOODWILL AND OTHER INTANGIBLE ASSETS
As at the balance sheet date, there is no goodwill on financial statements.
The Bank’s intangible assets consist of software. Intangible assets are initially recorded at their costs in compliance with the TAS 38 – Intangible Assets.
The costs of the intangible assets purchased before 31 December 2004 are restated from the purchasing dates to 31 December 2004, the date the
hyperinflationary period is considered to be ended. The intangible assets purchased after this date are recorded at their historical costs. The intangible
assets are amortized based on straight line amortization.
If there is objective evidence of impairment, the asset’s recoverable amount is estimated in accordance with the TAS 36 - Impairment of Assets and if
the recoverable amount is less than the carrying value of the related asset, a provision for impairment loss is made.
Estimated useful lives of the Bank’s intangible assets are 3-15 years, and amortisation rates are between 6.67% and 33.33%.
XIII. INFORMATION ON TANGIBLE ASSETS
The costs of the tangible assets purchased before 31 December 2004 are restated from the purchasing dates to 31 December 2004, the date the
hyperinflationary period is considered to be ended. In subsequent periods no inflation adjustment is made for tangible assets, and costs which are
restated as of 31 December 2004 are considered as their historical costs. Tangible assets purchased after 1 January 2005 were recorded at their
historical costs after foreign exchange differences and financial expenses are deducted if any. The Bank decided to pursue the properties for use
according to their fair values in terms of separating the land and buildings within the context of TAS 16 “Turkish Accounting Standard on Property,
Plant and Equipment” after the change in the accounting policy as of 30 September 2015. As a result of the valuation from the independent appraisal
company, revaluation difference of TL 548,449 after deferred tax effect is followed under the revaluation surplus on tangible assets under shareholders’
equity (As of 31 December 2015, this difference is TL 548,390).
As of 31 December 2015, the conformity between net book value that was calculated based on the cost of properties for use and revaluated values are
as follows;
31 December 2015
Fair value
909,191
Net book value calculated on cost value
331,935
Before tax revaluation differences
577,256
Calculated deferred tax liability (-)
(28,866)
Revaluation differences-net
548,390
Gains and losses arising from the disposal of the tangible assets are calculated as the difference between the net book value and the net sales price
and recognized in the income statement of the period.
Maintenance costs of tangible fixed assests are capitalized if they extend the economic useful life of related assests. Other maintenance costs are
expensed.
