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VAKIFBANK
2014 ANNUAL REPORT
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I. OF SECTION THREE
TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI
UNCONSOLIDATED FINANCIAL REPORT FOR THE
YEAR ENDED AT 31 DECEMBER 2014
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
Loans and receivables are recorded at cost and measured at amortized cost by using effective interest method. The duties paid, transaction expenditures and
other similar expenses on assets received against such risks are considered as a part of transaction cost and charged to customers.
Associates and subsidiaries
Subsidiaries are the entities that the Bank has the power to govern the financial and operating policies of those so as to obtain benefits from its activities.
Subsidiaries are accounted in accordance with TAS 39 – Financial Instruments: Recognition and Measurement in the unconsolidated financial statements.
Subsidiaries, which are traded in an active market or whose fair value can be reliably measured, recorded at fair value. Subsidiaries which are not traded in an
active market and whose fair value cannot be reliably set are reflected in financial statements with their costs after deducting impairment losses, if any.
Associates are accounted in accordance with TAS 39-Financial Instruments: Recognition and Measurement in the unconsolidated financial statements.
Associates, which are traded in an active market or whose fair value can be reliably measured, are recorded at their fair values. Associates which are not
traded in an active market and whose fair values cannot be reliably set are reflected in financial statements with their costs after deducting impairment losses,
if any.
VII. INFORMATION ON IMPAIRMENT OF FINANCIAL ASSETS
Financial assets or group of financial assets are reviewed at each balance sheet date to determine whether there is objective evidence of impairment. If any
such indication exists, the Bank estimates the amount of impairment.
Impairment loss incurs if, and only if, there is objective evidence that the expected future cash flows of financial asset or group of financial assets are adversely
affected by an event(s) (“loss event(s)”) incurred subsequent to recognition. The losses expected to incur due to future events are not recognized even if the
probability of loss is high.
If there is an objective evidence that certain loans will not be collected, for such loans; the Bank provides specific and general allowances for loan and other
receivables classified in accordance with the Regulation on Identification of and Provision against Non-Performing Loans and Other Receivables published on
the Official Gazette no. 26333 dated 1 November 2006 and the amendments to this regulation. The allowances are recorded in the statement of income of the
related period.
VIII. INFORMATION ON OFFSETTING OF FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if, and only if, there is a currently enforceable legal right
to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously.
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 classified under “held for trading”, “available for sale” and/or
“held-to-maturity” portfolios and they are valued based on the revaluation principles of the related portfolios. 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
Tangible assets acquired in consideration of receivables are accounted for in accordance with the requirements of the Communiqué on “Methods, Principles for
Purchase and Sale of Precious Metal and Sale of Goods and Immovables obtained in Return of Receivables” published in the Official Gazette numbered 26333
and dated 1 November 2006 and these assets are subject to revaluation by no means.
A discontinued operation is a part of the Bank’s business classified as sold or held-for-sale. The operating results of the discontinued operations are disclosed
separately in the income statement.
The Bank has no discontiuned operations.