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PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT
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.)
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 Group 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 712,165 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 743,729).
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
1,180,140
Net book value calculated on cost value
389,060
Before tax revaluation differences
791,080
Calculated deferred tax liability (-)
(47,351)
Revaluation differences-net
743,729
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 is recognized in the income statement of the period.
Maintenance costs of tangible fixed assets are capitalized if they extend the economic useful life of related assets. Other maintenance costs are
recognized as expense.
There are no restrictions such as pledges, mortgages or any other restriction on tangible assets.
Depreciation rates of tangible assets 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 Group 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 INVESTMENT PROPERTIES
Investment property is a property held either to earn rental income or for capital appreciation or for both. Group holds investment property with respect
to the consolidated real estate investment and insurance firms’ activities.
Investment properties are initially recorded at their acquisition costs including transaction costs.
Investment properties, following the initial recording, are measured by acquisition cost method (deducting accumulated depreciation and if it is present,
provisions for impairment from acquisition cost).
