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Türkiye Vakıflar Bankası Türk Anonim Ortaklığı
and Its Financial Subsidiaries Consolidated Financial Report as at and
For the Year Ended 31 December 2013
(Currency: Thousands of Turkish Lira (“TL”))
Convenience Translation of the Consolidated Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Section 3 Note I
XII. Information on goodwill and other intangible assets
The Group’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 on their restated costs based on straight line amortisation.
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.
XIII. 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. The tangible assets purchased after this date are recorded at their historical costs. Tangible assets
purchased after 1 January 2005 are recorded at their historical costs.
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 balance sheet date, the Group evaluates whether there is objective evidence of impairment on its assets and 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.
XIV. Information on investment properties
Investment property is a property held either to earn rental income or for capital appreciation or for both. The Group holds investment property through
its real estate company and insurance companies, consolidated in the accompanying consolidated financial statements.
Investment properties are initially recorded at their acquisition costs including transaction costs.
Subsequent to initial recognition, the Group measures all investment property based on the cost model in accordance with the cost model for property
and equipment (i.e. at cost less accumulated depreciation and less any accumulated impairment losses).
VAKIFBANK ANNUAL REPORT 2013
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