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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.)
Deferred taxes
According to the TAS 12 -
Income Taxes;
deferred tax assets and liabilities are recognized, on all taxable temporary differences arising between the carrying values of
assets and liabilities in the financial statements and their corresponding balances considered in the calculation of the tax base, except for the differences not deductible
for tax purposes and initial recognition of assets and liabilities which affect neither accounting nor taxable profit.
The deferred tax assets and liabilities are reported as net in the financial statements only if the Bank has legal right to present the net value of current year tax assets
and current year tax liabilities and the deferred tax assets and deferred tax liabilities are income taxes of the same taxable entity.
In case valuation differences resulting from the subsequent measurement of the items are recognized in the statement of income, then the related current and or
deferred tax effects are also recognized in the statement of income. On the other hand, if valuation differences are recognized in shareholders’ equity, then the related
current or deferred tax effects are also recognized directly in the shareholders’ equity.
Transfer Pricing
In Turkey, the transfer pricing provisions have been stated under the Article 13 of Corporate Tax Law with the heading of “disguised profit distribution via transfer
pricing”. The General Communiqué on disguised profit distribution via Transfer Pricing, dated 18 November 2007 sets details about implementation.
Pursuant to the relevant Communiqué, if a taxpayer enters into transactions regarding sale or purchase of goods and services with related parties, where the prices are
not set in accordance with arm's length principle, then related profits are considered to be distributed in a disguised manner through transfer pricing. Such disguised
profit distributions through transfer pricing are not accepted as tax deductible for corporate income tax purposes.
XVII. ADDITIONAL INFORMATION ON BORROWINGS
The Bank provides funding resources such as syndication and securitization transactions in case of need. In the current period, the Bank has started to obtain funds
through domestic and international bonds.
These transactions are initially recognized at acquisition costs at the transaction date and are subsequently measured at amortized cost using effective interest method.
XVIII. INFORMATION ON ISSUANCE OF EQUITY SECURITIES
The shares of the Bank having nominal value of TL 322,000,000 (full TL), representing the 25.18% of the Bank’s outstanding shares, was publicly offered at a price
between TL 5.13-5.40 for each share having a nominal value of TL 1 on November 2005, and TL 1,172,347 was recorded as “Share Premiums” in shareholders’ equity.
TL 448,429 of this amount has been utilized in capital increase on 19 December 2006.
XIX. INFORMATION ON CONFIRMED BILLS OF EXCHANGE AND ACCEPTANCES
Confirmed bills of exchange and acceptances are realized simultaneously with the customer payments and recorded in off-balance sheet accounts as possible debt and
commitment, if any. As at the balance sheet date, there are no acceptances recorded as liability in return for assets.
XX. INFORMATION ON GOVERNMENT INCENTIVES
As at 31 December 2014 and 31 December 2013, the Bank does not have any government incentives.
XXI. INFORMATION ON SEGMENT REPORTING
Operational segments are determined based the structure of the Bank’s risks and benefits and presented in Section 4 Note X.
XXII. OTHER DISCLOSURES
Earnings per shares
Earnings per share has been calculated by dividing the net profit for the year to weighted average of outstanding shares. In Turkey, the companies may perform capital
increase (“Bonus Shares”) from retained earnings. In earning per share computation bonus shares are treated as issued shares.
As at and for the year ended 31 December 2014, earnings per 100 shares are full TL 0.7013 (31 December 2013: full TL 0.6342).