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FINANCIAL HIGHLIGHTS AND 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
UNCONSOLIDATED FINANCIAL REPORT FOR THE
YEAR ENDED AT 31 DECEMBER 2014
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
XI. INFORMATION ON GOODWILL AND OTHER INTANGIBLE ASSETS
As at the balance sheet date, the Bank has no goodwill.
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 than 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 historical costs after foreign
exchange differences and financial expenses are deducted if any.
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
regonized 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
Rate (%)
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 than the carrying
value of the related asset, a provision for impairment loss is made.
XIII. INFORMATION ON LEASING ACTIVITIES
Finance leasing activities as the lessee
Tangible assets acquired by way of finance leasing are recognized in tangible assets and the obligations under finance leases arising from the lease contracts
are presented under “Finance Lease Payables” account in the financial statements. In the determination of the related assets and liabilities, the lower of the
fair value of the leased asset and the present value of leasing payments is considered. Financial costs of leasing agreements are expanded in lease periods at
a fixed interest rate.
If there is impairment in the value of the assets obtained through financial lease and in the expected future benefits, the leased assets are valued with net
realizable value. Depreciation for assets obtained through financial lease is calculated in the same manner as tangible assets.