VKF_FRAE_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.) PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT 376 VakıfBank Annual Report 2017 13. Information on intangible assets Group’s intangible assets consist of computer softwares and licenses. The estimated useful life of intangible assets is 5 years. Intangible assets are amortized on a straight-line basis through the estimated useful lives over their costs adjusted for inflation for the items purchased before December 31, 2004, over their initial costs for the items purchased after December 31, 2004. In the current year an intangible asset that presents severity for the financial statements does not exist. Additionally the Group does not have intangible assets, which are obtained by government incentives, recorded at fair value, have utilization restrictions or have been pledged. The Group has not declared a commitment to purchase intangible assets. 14. Information on investment properties As of December 31, 2017, the Group has investment properties that have book amount of its subsidiaries which are operating in the insurance business is TL 8,377 (December 31, 2016: TL 8,877) and its subsidiaries which are operating in real estate investment business is TL 415,121 (December 31, 2016: TL 345,508). 15. Information on tax assets a) Current tax assets As at December 31, 2017 the current tax asset of the Group amounts to TL 1,016 (December 31, 2016: TL 835). b) Deferred tax assets Items generating deferred tax assets or liabilities are listed below as at December 31, 2017 and December 31, 2016: Current Period Prior Period Provision for employee termination benefits and unused vacations 103,455 97,828 Other provisions 57,514 93,646 Valuation differences of associates and subsidiaries 55,424 27,488 Deductible financial losses 24,099 26,418 Investment incentives 373 4,314 Valuation differences of financial assets and liabilities 80,160 82,263 Reporting Standards - Tax Code depreciation differences - 6,330 Other differences 17,108 16,268 Deferred tax assets 338,133 354,555 Net-off of the deferred tax assets and liabilities from the same entity (275,537) (157,468) Deferred tax assets, (net) 62,596 197,087 Valuation differences of financial assets and liabilities 254,360 119,153 Valuation difference for associates and subsidiaries 21,501 17,511 Valuation differences of properties 51,801 39,593 Other differences 22,939 4,235 Deferred tax liabilities 350,601 180,492 Net-off of the deferred tax assets and liabilities from the same entity (275,537) (157,468) Deferred tax liabilities, (net) 75,064 23,024