VKF_FRAE_2018_uyg11

VakıfBank Annual Report 2018 163 CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND ITS FINANCIAL SUBSIDIARIES NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2018 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) These transactions are initially recognized at acquisition costs at the transaction date and are subsequently measured at amortized cost using effective interest method. The bank is not hedging about debt instruments. XX. INFORMATION ON ISSUANCE OF EQUITY SECURITIES The shares of the Bank having nominal value of TL 322,000,000 (full TL), representing the 25.18% of the Bank’s outstanding shares, was publicly offered at a price between TL 5.13-5.40 for each share having a nominal value of TL 1 on November 2005, and TL 1,172,347 was recorded as “Share Premiums” in shareholders’ equity. TL 448,429 of this amount has been utilized in capital increase on December 19, 2006. XXI. INFORMATION ON CONFIRMED BILLS OF EXCHANGE AND ACCEPTANCES Confirmed bills of exchange and acceptances are realized simultaneously with the customer payments and recorded in off-balance sheet accounts as possible debt and commitment, if any. As at the balance sheet date, there are no acceptances recorded as liability in return for assets. XXII. INFORMATION ON GOVERNMENT INCENTIVES As at December 31, 2018 and December 31, 2017, the Bank does not have any government incentives. XXIII. INFORMATION ON SEGMENT REPORTING An operating segment is a component of an entity: - That engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity), - Whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and - For which discrete financial information is available. Segment reporting was selected as a fundamental section reporting method considering Bank’s risk and return structure and key sources. It is disclosed in Section 4 Note VII. XXIV. OTHER MATTERS Earnings per shares Earnings per share has been calculated by dividing the net profit for the year to weighted average of outstanding shares. In Turkey, the companies may perform capital increase (“Bonus Shares”) from retained earnings. In earning per share computation bonus shares are treated as issued shares. As at and for the year ended December 31, 2018, earnings per 100 shares are full TL 1.6617 (December 31, 2017: full TL 1.4894).