VAKIFBANK
2015 ANNUAL REPORT
130
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.)
There are no restrictions such as pledges, mortgages or any other restriction on tangible assets. Depreciation rates and estimated useful lives are:
Tangible assets
Estimated useful life (Years)
Depreciation Rate (%)
Buildings
50
2
Office equipment, furniture and fixture, and motor vehicles
5-10
10-20
Assets obtained through finance leases
4-5
20-25
There are no changes in the accounting estimates that are expected to have an impact in the current or subsequent periods.
At each reporting date, the Bank evaluates whether there is objective evidence of impairment on its assets. If there is an 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.
XIV. INFORMATION ON LEASING ACTIVITIES
Leasing activities
Risks and benefits on leasing activities that belongs to leasee is termed TAS 17- Leasing activities that belongs to financial leasing.
- Finance leasing activities as the lessee
Tangible assets acquired by way of finance leasing are recognized in tangible assets and the obligations under finance leases arising from the lease
contracts are presented under “Finance Lease Payables” account in the financial statements. In the determination of the related assets and liabilities,
the lower of the fair value of the leased asset and the present value of leasing payments is considered. Financial costs of leasing agreements are
expanded in lease periods at a fixed interest rate.
If there is an impairment in the value of the assets obtained through financial lease and in the expected future benefits, the leased assets are valued
with net realizable value. Provision for losses is calculated for decrease of the value of the assets that is obtained by this way. Depreciation for assets
obtained through financial lease, is calculated in the same manner as tangible assets.
- Finance leasing transactions as lessor
The Bank does not perform as a lessor on leasing transactions.
Operational leases
Operational leasing is defined as activities except financial leasing. Transactions regarding operational lease agreements are accounted on an accrual
basis in accordance with the terms of the related contracts.
XV. INFORMATION ON PROVISIONS, CONTINGENT LIABILITIES AND ASSETS
Provisions other than the specific and general provisions set for loans and other receivables and provisory liabilities are accounted in accordance with
TAS 37 “Turkish Accounting Standard on Provisions, Contingent Liabilities and Contingent Assets Corresponding”.
In the financial statements, a provision is made for an existing commitment resulted from past events if it is probable that the commitment will be
settled and a reliable estimate can be made of the amount of the obligation. Provisions are calculated based on the best estimates of management
on the expenses to incur as at the balance sheet date and, if material, such expenses are discounted for their present values. If the amount is not
reliably estimated and there is no probability of cash outflow from the Bank to settle the liability, the related liability is considered as “contingent” and
disclosed in the notes to the financial statements.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence
of unplanned or unexpected one or more uncertain future events not wholly within the control of the entity. Contingent assets are not recognized in
financial statements since this may result in the recognition of income that may never be realized. Contingent assets are assessed continually to ensure
that developments are appropriately reflected in the financial statements. If it has become virtually certain that an inflow of economic benefits will
arise, the asset and the related income are recognized in the financial statements of the period in which the change occurs. If an inflow of economic
benefits has become probable, the Bank discloses the contingent asset.
