VKF_FRAE_2018_uyg11

278 Part III: Financial Highlights and Assessment of Risk Management 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.) Information on employee rights According to the TAS-19- Judgments of benefits that are provided to employees, bank accounts and calculate provision to obligations of severance pay and allowance rights. As of December 31, 2018, TL 427,866 (December 31, 2017: TL 388,002) provision for severance pay and TL 144,983 (December 31, 2017 TL 102,256) provision for unused vacation are stated in financial statements under employee rights provision. Movement of severance pay provision in the period: Current Period - December 31, 2018 Opening balance 388,002 Current service cost 36,627 Previous service cost (7,438) Interest cost 44,225 Paid compensation (52,690) Payment/Reduction of benefits/Layoff accordingly composed loss/(gain) 5,905 Actuary loss/(gain) (13,235) Closing balance 427,866 Prior Period - December 31, 2017 Opening balance 374,691 Current service cost 36,861 Previous service cost 8,866 Interest cost 38,395 Paid compensation (39,522) Payment/Reduction of benefits/Layoff accordingly composed loss/(gain) (569) Actuary loss/(gain) (30,720) Closing balance 388,002 Information on pension rights As per Article 21 of Insurance Law no. 5684 and the clauses of “Actuaries Regulation” published as per this article, the technical financial statements of the Fund is audited by an actuary registered in the actuary registry. No technical or actual deficits which need the allocation of provisions as per the actuary report dated January 2019 is identified.