VKF_FRAE_2017

CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUEDIN TURKISH, SEE NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI EXPLANATIONS AND NOTES RELATED TO THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT 238 VakıfBank Annual Report 2017 15. Information on deferred tax assets As at December 31, 2017 and December 31, 2016, items generating deferred tax assets or liabilities are listed below: Current period Prior Period Deferred tax assets: 218,616 256,814 Provision for employee termination benefits and unused vacations 98,052 93,202 Other provisions 14,994 50,864 Valuation differences of associates and subsidiaries 23,456 23,456 Valuation differences of financial assets and liabilities 80,160 81,386 BRSA - Tax Code depreciation differences - 5,986 Other 1,954 1,920 Deferred tax liabilities: (332,351) (173,705) Valuation differences of financial assets and liabilities (240,275) (96,100) Valuation differences of associates and subsidiaries (56,408) (48,843) Valuation differences of properties (28,433) (28,762) BRSA - Tax Code depreciation differences (7,235) - Deferred tax assets/(liabilities), net (113,735) 83,109 The deferred tax asset / liability schedule as of December 31, 2017 and December 31, 2016 is as follows: Current Period Prior Period As of 1 January 83,109 15,421 Deferred tax income/loss (159,072) 19,942 Deferred tax that is accounted under Equity (36,316) 48,737 Exchange differences (1,456) (991) Deferred tax asset/(Liability) (113,735) 83,109 The reconciliation of the deferred tax on the assets directly related to the equity as of December 31, 2017 and December 31, 2016 is as follows: Current Period Prior Period Receivables from credit card payments (14,566) 47,738 Guarantees given for derivative financial instruments (15,934) 1,500 Prepaid expenses 328 104 Receivables from term sale of assets (6,144) (605) Guarantees given for repurchase agreements (36,316) 48,737 16. Information on assets held for sale and assets related to the discontinued operations As at December 31, 2017 assets held for sale and assets related to the discontinued operations amount to TL 1,312,493 (December 31, 2016: TL 1,227,867).