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VAKIFBANK
2014 ANNUAL REPORT
227
TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND ITS FINANCIAL SUBSIDIARIES
CONSOLIDATED FINANCIAL REPORT AS AT AND
FOR THE YEAR 31 DECEMBER 2014
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE IN NOTE I. OF SECTION THREE
IX. INFORMATION ON NETTING 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
of the Group 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.
X. INFORMATION ON REPURCHASE AND RESALE 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.
XI. INFORMATION ON ASSETS AND LIABILITIES ARISING FROM 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 Immovable 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 Group has no discontinued operations.
XII. INFORMATION ON GOODWILL AND OTHER INTANGIBLE ASSETS
As at the balance sheet date, the Group has no goodwill.
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 than the carrying value of the related asset, a provision for impairment loss is made.