VAKIFBANK
2015 ANNUAL REPORT
322
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.)
2. Information on increases in cash flow hedges
None.
3. Reconciliation of the beginning and end of the year balances of foreign exchange differences
As of 31 December 2015, foreign currency translation differences of 42,762 TL (31 December 2014: (15,664) TL), which occurred from converting
abroad subsidiaries’ financial statements to TL for consolidation purpose, is accounted under other reserves in the enclosed consolidated financial
statements.
4. Information on correction differences of shareholders’ equity accounts due to inflation
In compliance with BRSA’s Circular on 28 April 2005 on ceasing the inflation accounting application, the balances resulted from the inflation accounting
application as at 31 December 2004 and booked according to the Uniform Chart of Accounts and the related Articles, are transferred to the main
accounts that were subject to the inflation accounting adjustments except for “capital reserves from inflation adjustments”. The balance of “capital
reserves from inflation adjustments” account is transferred to “other capital reserves” account. In 2006, the Bank has increased its paid in capital
through “other capital reserves” by TL 605,763.
5. Information on profit distribution
As per the resolution of 61st Annual General Assembly held on 30 March 2015, the net profit of the year 2014 which amounts to TL 1,612,157
after deferred tax income deducted is decided to be distributed as legal reserves amounting to TL 161,215, extraordinary reserves amounting to TL
1,114,820, special funds amounting to TL 236,122 and dividends to equity holders of the Parent Bank amounting to TL 100,000.
6. Information on decreases of revaluation of available-for-sale investments
Revaluation differences of available-for-sale investments has resulted with increase in the current year. Detailed information about the increases is
explained above in Note 1.
VI. INFORMATION AND DISCLOSURES ON STATEMENT OF CASH FLOWS
1. Disclosures for “other” items in statement of cash flows and effect of change in foreign currency rates cash and cash equivalents
“Other” item under the “operating profit before changes in operating assets and liabilities” amounting to TL (2,899,768) (31 December 2014: TL
(1,915,812)) is comprised of other operating expense in the balance sheet, fees and commission expense, and cash amount of trading profit/loss.
“Net increase/decrease in other liabilities” amounting to TL (2,436,988) (31 December 2014: TL 2,063,317) under “changes in operating assets and
liabilities” is mainly comprised of fınd based cash outflows from repurchase agreements.
“Other” balance under “net cash flow from investing activities” amounting to TL (51,353) (31 December 2014: TL (44,008)) is comprised of purchases
of intangible assets.
When calculating exchange rate effect on cash and cash equivalents, related assests’ high turnover rate are taken into consideration. Each exchange
rate’s arithmetic average of the last five days before the report date and provision of average TL that is calculated from the difference from current
period’s exchange rate are reflected as an effect of exchange rate change on the cash flow statement. Except for the above-mentioned, banks that
have less than three months to maturity are accepted as cash equivalents and average TL provision is calculated by difference between related
operation’s per term exchange rate and current period’s exchange rate. As of 31.12.2015 impact of the exchange rate change on cash and cash
equivalents is TL (30,472) (31.12.2014: TL 4,539).
