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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.)
VIII. FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES
Carrying Value
Fair Value
Current Period
Prior Period Current Period
Prior Period
Financial Assets:
Receivables from Interbank Money Markets
-
-
-
-
Banks
5,234,266
2,570,620
5,234,266
2,570,620
Available-for-Sale Financial Assets
16,773,969
16,323,297
16,773,969
16,323,297
Held-to-Maturity Investments
7,677,729
6,854,593
7,496,076
6,983,593
Loans
123,780,653
104,583,517
125,203,508
105,477,073
Financial Liabilities:
Bank Deposits
5,602,883
4,876,059
5,602,883
4,876,059
Other Deposits
104,319,651
86,880,909
103,957,669
86,925,247
Funds Borrowed
18,555,997
14,927,048
18,837,415
14,926,784
Securities Issued
10,547,759
10,457,757
10,471,257
10,388,073
Subordinated Loans
4,169,474
2,138,030
4,169,474
2,138,030
Miscellaneous Payables
4,160,217
3,160,415
4,160,217
3,160,415
Fair values of available-for-sale financial assets and held-to-maturity investments are derived from market prices or in case of absence of such prices
they are derived from prices of other marketable securities, whose interest rate, maturity date and other conditions are similar to securities held.
Fair value of loans are calculated by discounting future cash flows with the use of current market interest rates.
Fair value of funds borrowed with fixed interest rate are calculated by discounting cash flows with current market interest rates. Fair value of funds
borrowed with floating interest rate is calculated according to repricing period by discounting cash flows with current market rates.
Fair value of other assets and liabilities is calculated by adding accumulated acquisition costs and the sum of the interest accrual.
Classification of Fair Value Measurement
TFRS 7 - Financial Instruments requires the classification of fair value measurements into a fair value hierarchy by reference to the observability and
significance of the inputs used in measuring fair value of financial instruments measured at fair value to be disclosed. This classification basicly relies
on whether the relevant inputs are observable or not. Observable inputs refer to the use of market data obtained from independent sources, whereas
unobservable inputs refer to the use of predictions and assumptions about the market made by the Bank. This distinction brings about a fair value
measurement classification generally as follows:
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices);
Level 3: Fair value measurements using inpus for the assets or liabilitity that are not based on observable market data (unobservable inputs).
Classification requires using observable market data if possible.
