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Türkiye Vakıflar Bankası Türk Anonim Ortaklığı
Unconsolidated Financial Report as at and
For the Year Ended 31 December 2013
(Currency: Thousands of Turkısh Lıra (“TL”))
(Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Section 3 Note I)
IX. Information on sales and repurchase agreements and securities lending
Securities sold under repurchase agreements (“repo”) are recorded on the balance sheet. Government bonds and treasury bills sold to customers under
repurchase agreements are classified as “Securities Subject to Repurchase Agreements” and measured based on their original portfolio, either at fair
value or at amortized cost using the effective interest rate method. Funds received through repurchase agreements are classified separately under
liability accounts and the related interest expenses are accounted on an accrual basis.
Securities purchased under resale agreements (“reverse repo”) are classified under “Interbank Money Markets” separately. An income accrual is
accounted for the positive difference between the purchase and resale prices earned during the period.
X. Information on assets held for sale and discontinued operations
An asset that is classified as held for sale (or to be discarded fixed assets) is measured with its book value or cost deducted fair value, depending on the
lower one. An asset to be classified asset held for sale, particular asset (or to be discarded fixed assets) should be similar to these types of assets and
should be able to be sold immedeatly with commonly accepted terms and conditions. Asset should be marketed in line with its fair value. For selling
prorbability to be high, relevant management level should plan the the sale and should finalize the plan by determining the buyers.
A discontinued operation is classified as the Bank’s assets discarded or assets held for sales. Information on discontinued operations is presented
seperately in consolidated income statement. As at reporting date, the Bank does not have any discontinued operations.
XI. Information on goodwill and other intangible assets
The Bank’s intangible assets consist of software.
Intangible assets are initially recorded at their costs in compliance with the TAS 38 –
Intangible Assets
.
The costs of the intangible assets purchased before 31 December 2004 are restated from the purchasing dates to 31 December 2004, the date the
hyperinflationary period is considered to be ended. The intangible assets purchased after this date are recorded at their historical costs. The intangible
assets are amortized based on straight line amortization.
If there is objective evidence of impairment, the asset’s recoverable amount is estimated in accordance with the TAS 36 –
Impairment of Assets
and if
the recoverable amount is less then the carrying value of the related asset, a provision for impairment loss is made.
XII. Information on tangible assets
The costs of the tangible assets purchased before 31 December 2004 are restated from the purchasing dates to 31 December 2004, the date the
hyperinflationary period is considered to be ended. In subsequent periods no inflation adjustment is made for tangible assets, and costs which are
restated as of 31 December 2004 are considered as their historical costs. Tangible assets purchased after 1 January 2005 are recorded at their cost
values.
Gains and losses arising from the disposal of the tangible assets are calculated as the difference between the net book value and the net sales price and
recognized in the income statement of the period.
Maintenance and repair costs incurred for tangible assets are recorded as expense.
There are no restrictions such as pledges, mortgages or any other restriction on tangible assets.
Depreciation rates and estimated useful lives are:
Tangible assets
Estimated useful
life (years)
Depreciation
Rates (%)
Buildings
50
2
Office equipment, furniture and fixture, and motor vehicles
5-10
10-20
Assets obtained through finance leases
4-5
20-25
There are no changes in the accounting estimates that are expected to have an impact in the current or subsequent periods.
At each reporting date, the Bank evaluates whether there is objective evidence of impairment on its assets.If there is an objective evidence of
impairment, the asset’s recoverable amount is estimated in accordance with the TAS 36 –
Impairment of Assets
and if the recoverable amount is less
then the carrying value of the related asset, a provision for impairment loss is made.
VAKIFBANK ANNUAL REPORT 2013
121