VKF_FRAE_2017

280 VakıfBank Annual Report 2017 PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT GAINS AND LOSSES RECOGNIZED IN EQUITY Independent Auditor’s Current Period January 1, 2017- December 31, 2017 Independent Auditor’s Prior Period January 1, 2016- December 31, 2016 I. VALUATION DIFFERENCES OF AVAILABLE FOR SALE FINANCIAL ASSETS RECOGNIZED IN VALUATION DIFFERENCES OF MARKETABLE SECURITIES 86,257 (234,289) II. REVALUATION SURPLUS ON TANGIBLE ASSETS 333 16,708 III. REVALUATION SURPLUS ON INTANGIBLE ASSETS - - IV. CURRENCY TRANSLATION DIFFERENCES (27,252) 59,217 V. GAINS/(LOSSES) FROM CASH FLOW HEDGES (Effective Portion of Fair Value Changes) - - VI. GAINS/(LOSSES) FROM NET FOREIGN INVESTMENT HEDGES (Effective portion) - - VII. EFFECTS OF CHANGES IN ACCOUNTING POLICIES AND ERRORS - - VIII. OTHER GAINS AND LOSSES RECOGNIZED IN EQUITY IN ACCORDANCE WITH TAS 88,820 31,515 IX. DEFERRED TAXES DUE TO VALUATION DIFFERENCES (21,448) 44,360 X. NET GAINS/LOSSES RECOGNIZED DIRECTLY IN EQUITY (I+II+…+IX) 126,710 (82,489) XI. CURRENT PERIOD’S PROFIT/(LOSS) 4,017,346 2,792,446 11.1 Change in fair value of securities (transfers to the statement of income) (34,098) (5,576) 11.2 Gains/Losses recognized in the statement of income due to reclassification of cash flow hedges - - 11.3 Gains/Losses recognized in the statement of income due to reclassification of net foreign investment hedges - - 11.4 Others 4,051,444 2,798,022 XII. TOTAL GAINS AND LOSSES RECOGNIZED DURING THE PERIOD (X+XI) 4,144,056 2,709,957 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 CONSOLIDATED STATEMENT OF PROFIT AND LOSS ITEMS ACCOUNTED UNDER SHAREHOLDERS’ EQUITY FOR THE YEAR ENDED DECEMBER 31, 2017 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) The accompanying explanations and notes form an integral part of these consolidated financial statements.