VKF_FRAE_2017

271 VakıfBank Annual Report 2017 Page No SECTION ONE General Information I. History of the Parent Bank including its incorporation date, initial legal status, amendments to legal status 272 II. The Parent Bank’s shareholder structure, management and internal audit, direct and indirect shareholders, change in shareholder structure during the period and information on Bank’s risk group 272-273 III. Information on the Parent Bank’s chairman and members of the board of directors, audit committee members, general manager, assistant general managers and their shares in the Bank 273-274 IV. Information on the Parent Bank’s qualified shareholders 274 V. Information about the services and nature of activities of the Parent Bank 275 VI. Differences between the communique on preparation of consolidated financial statements of banks and Turkish accounting standards and short explanatıon about the institutions subject to line-by-line method or proportional consolidation and institutions which are deducted from equity or not included in these three methods 275 VII Current of likely actual or legal barriers to immediate transfer of equity or repayment of debts between the Parent Bank and its subsidiaries 275 SECTION TWO Consolidated Financial Statements I. Consolidated balance sheet – Assets 276 II. Consolidated balance sheet - Liabilities and equity 277 III. Consolidated off-balance sheet items 278 IV. Consolidated statement of income 279 V. Consolidated statement of profit and loss items accounted under shareholders’ equity 280 VI. Consolidated statement of changes in equity 281-282 VII. Consolidated statement of cash flows 283 VIII. Consolidated statement of profit distribution 284 SECTION THREE Accounting Policies I. Basis of presentation 285-286 II. Strategy for the use of financial instruments and information on foreign currency transactions 286-287 III. Information on associates that are consolidated and subsidiaries that are accounted according to equity method 288-289 IV. Information on forwards, options and other derivative transactions 289 V. Information on interest income and expenses 289-290 VI. Information on fees and commissions 290 VII. Information on financial assets 290-291 VIII. Information on impairment of financial assets 291 IX. Information on offsetting of financial instruments 291 X. Information on sales and repurchase agreements and securities lending 292 XI. Information on assets held for sale and discontinued operations 292 XII. Information on goodwill and other intangible assets 292 XIII. Information on tangible assets 292-293 XIV. Information on investment properties 293 XV. Information on leasing activities 293 XVI. Information on provisions, contingent assets and liabilities 294 XVII. Information on obligations of the Group concerning employee rights 294-295 XVIII. Information on taxation 296-297 XIX Information on cash and cash equivalents 298 XX. Additional information on borrowings 298 XXI. Information on issuance of equity securities 298 XXII. Information on confirmed bills of exchange and acceptances 298 XXIII. Information on government incentives 298 XXIV. Information on segment reporting 298 XXV. Other matters 299-300 SECTION FOUR Information Related to the Consolidated Financial Position and Risk Management I. Consolidated equity items 301-306 II. Consolidated credit risk 306-318 III. Consolidated foreign currency exchange risk 319-321 IV. Consolidated interest rate risk 321-324 V. Consolidated stock position risk 325-326 VI. Consolidated liquidity risk and coverage ratio 326-331 VII. Consolidated leverage ratio 331-332 VIII. Consolidated fair values of financial assets and liabilities 333-335 IX. Transactions carried out on behalf of customers, items held in trust 335 X. Consolidated segment reporting 335-337 XI. Information on risk management 338-358 SECTION FIVE Disclosures and Footnotes on Consolidated Financial Statements I. Information and disclosures related to consolidated assets 359-377 II. Information and disclosures related to consolidated liabilities 378-386 III. Information and disclosures related to consolidated off-balance sheet items 386-390 IV. Information and disclosures related to consolidated statement of income 390-395 V. Information and disclosures related to statement of changes in shareholders’ equity 396 VI. Information and disclosures on statement of cash flows 397-398 VII. Information and disclosures related to the parent bank’s risk group 398-399 VIII. Information on domestic, foreign and off-shore branches or investments and foreign representative offices of the parent bank 400 SECTION SIX Other Disclosures and Footnotes I. Other disclosures on the Parent Bank’s activity 400 II. Information on the Parent Bank’s rating given by international credit rating institutions 401 III. Significant events and matters subsequent to balance sheet date that are not resulted 401 SECTION SEVEN Auditors’ Review Report I. Information on Independent auditor’s report 402 II. Explanations and footnotes prepared by independent auditor 402