VAKIFBANK
2015 ANNUAL REPORT
238
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE IN NOTE I. OF SECTION THREE
TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND
ITS FINANCIAL SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND
FOR THE YEAR ENDED 31 DECEMBER 2015
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
X. INFORMATION ON SALES AND REPURCHASE AGREEMENTS AND SECURITIES LENDING
Securities sold under repurchase agreements (“repo”) are classified under “held for trading”, “available for sale” and/or “held-to-maturity” portfolios
according to their holding purposes in the Group’s portfolio, and they are valued based on the revaluation principles of the related portfolios. Funds
received through repurchase agreements are classified separately under liability accounts and the related interest expenses are accounted on an
accrual basis of balance sheet date.
Securities purchased under resale agreements (“reverse repo”) are classified in balance sheet under “Receivables from Money Markets” separately. The
expense accrual is accounted for the impute of interest expense as of the balance sheet date.
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 Group’s business classified as sold or held-for-sale. The operating results of the discontinued operations are
disclosed separately in the income statement.
The Group has no discontinued operations.
XII. INFORMATION ON GOODWILL AND OTHER INTANGIBLE ASSETS
As at the balance sheet date, the Group has no goodwill.
The Group’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 on their restated costs 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 Group’s intangible assets are 3-15 years, and amortization rates are between 6.67% and 33.33%.
