VKF_FRAE_2017

243 VakıfBank Annual Report 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.) 6. Information on derivative financial liabilities held for risk management purpose Negative fair values of hedging purpose derivatives None. 7. Information on provisions Information on general provisions Current Period Prior period Provisions for loans and receivables in Group I 1,527,551 1,796,316 -Additional provision for loans with extended payment plans 67,249 50,986 Provisions for loans and receivables in Group II 181,119 222,879 -Additional provision for loans with extended payment plans 32,611 33,725 Provisions for non-cash loans 137,421 124,718 Other 39,402 23,530 Total 1,885,493 2,167,443 Information on employee rights According to the TAS-19- Judgments of benefits that are provided to employees, bank accounts and calculate provision to obligations of severance pay and allowance rights. As of December 31, 2017, TL 388,002 (December 31, 2016: TL 374,691) provision for severance pay and TL 102,256 (December 31, 2016 TL 91,322) provision for unused vacation are stated in financial statements under employee rights provision. Movement of severance pay provision in the period: Current Period Prior Period Opening balance 374,691 350,227 Current service cost 36,861 40,672 Previous service cost 8,866 - Interest cost 38,395 33,177 Paid compensation (39,522) (48,357) Payment/Reduction of benefits/Layoff accordingly composed loss//(gain) (569) 1,996 Actuary loss/(gain) (30,720) (3,024) Closing balance 388,002 374,691 Information on pension rights The Fund’s technical financial statements are inspected by an actuary who is registered to the actuaries registry, in accordance with the Insurance Law no. 5684, article 21, and the “Actuaries Regulations” published referring to the mentioned article. According to the actuary report dated January 2018, there are no technical or actual deficits that requires making any provision.