VAKIFBANK
2015 ANNUAL REPORT
280
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.)
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 Company. 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.
The classification of fair value measurements of financial assets and liabilities measured at fair value is as follows:
31 December 2015
Level 1
Level 2
Level 3
Total
Financial assets at fair value through profit/loss:
Financial assets held for trading purpose:
Debt securities
69,685
25,711
-
95,396
Derivative financial assets held for trading purpose
-
885,467
-
885,467
Investment funds
13,167
-
-
13,167
Equity securities
1,832
-
-
1,832
Available-for-sale financial assets
Equity securities
-
-
79,253
79,253
Debt securities
14,322,018 2,934,840
-
17,256,858
Investments in associates and subsidiaries
-
-
271,913
(*)
271,913
Total Financial Assets
14,406,702 3,846,018
351,166 18,603,886
Financial liabilities at fair value through profit/loss:
-
-
-
-
Derivative financial liabilities held for trading purpose
-
(304,352)
-
(304,352)
Total Financial Liabilities
-
(304,352)
-
(304,352)
