VKF_FRAE_2017

375 VakıfBank Annual Report 2017 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 EXPLANATIONS AND NOTES RELATED TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) Net investments in finance lease receivables Current Period Prior Period Gross finance lease receivables 2,177,763 1,788,681 Unearned income on finance lease receivables (-) 297,563 242,272 Terminated lease contracts (-) - - Net finance lease receivables 1,880,200 1,546,409 Finance lease agreements Sum of the minimum lease payments including interest and principal amounts are stated under the “finance lease receivables” as gross. The difference between the total of rent payments and the cost of the related fixed assets is reflected to the “unearned income” account. If the lease payments are made, the lease principal amount is deducted from the “finance lease receivables” as the interest component of the payment is reflected to interest income on the consolidated statement of income.  11. Information on hedging purpose derivatives Positive differences on derivative financial instruments held for risk management purposes None. 12. Information on tangible assets Real Estates Leased Tangible Assets Vehicles Other Tangible Assets Total Balance at the end of the prior year: Cost 1,196,829 120,731 29,140 1,317,756 2,664,456 Accumulated depreciation(-) 11,399 113,222 24,091 806,410 955,122 Impairment(-) 6,231 - - - 6,231 Net book value 1,179,199 7,509 5,049 511,346 1,703,103 Balance at the end of the current year: - - - - - Net book value at the beginning of the current year 1,179,199 7,509 5,049 511,346 1,703,103 Additions 29,501 - 3,402 157,142 190,045 Cost of the disposals 11,008 - 8,818 21,815 41,641 Classification Among the Tangible Fixed Assets - (111,890) - 111,890 - Depreciation of the disposals (-) 1,866 - 8,501 19,928 30,295 Depreciation of the current year 10,279 1,919 1,678 132,218 146,094 Classification Among the Depreciation of the Tangible Fixed Assets - (109,022) - 109,022 - Impairment (-) 603 - - 4,821 5,424 Exchange differences related to foreign associates - - 26 1,099 1,125 Cost at the end of the current year 1,215,322 120,731 23,750 1,454,182 2,813,985 Accumulated depreciation at the end of the year (-) 19,812 115,141 17,268 918,700 1,070,921 Impairment (-) 6,834 - - 4,821 11,655 Net book value at the end of the current year 1,188,676 5,590 6,482 530,661 1,731,409