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FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT
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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
Classification of Fair Value Measurement
TFRS 7 – Financial Instruments: Disclosures requires the measurements of fair value of financial instruments to be classified in a hierarchy that reflects the
significance of the valuation inputs used. This classification prioritises observable data, using market data obtained from independent sources, in preference to
unobservable data that relies, for example on the use of predictions and assumptions about market prices by the Group. This sort of categorization generally
results in the classifications below:
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.
prices) or indirectly (i.e. derived from prices).
Level 3: Fair value measurements using inputs for the assets or liability that are not based on observable market data (i.e. unobservable inputs)
Classification requires using observable market data if possible.
The classification of fair value measurements of financial assets and liabilities measured at fair value is as follows:
31 December 2014
Level 1
Level 2
Level 3
Total
Financial assets at fair value through profit/loss:
Financial assets held for trading purpose:
Debt securities
10,798
55,355
-
66,153
Derivative financial assets held for trading purpose
-
379,576
-
379,576
Investment funds
2,947
-
-
2,947
Equity securities
1,565
-
1,565
Available-for-sale financial assets
Equity securities
-
-
-
-
Debt securities
15,378,036
1,493,064
-
16,871,100
Investments in associates and subsidiaries
203,092
-
259,823
(*)
462,915
Total Financial Assets
15,596,438
1,927,995
259,823
17,784,256
Financial liabilities at fair value through profit/loss:
Derivative financial liabilities held for trading purpose
-
(270,627)
-
(270,627)
Total Financial Liabilities
-
(270,627)
-
(270,627)
31 December 2013
Level 1
Level 2
Level 3
Total
Financial assets at fair value through profit/loss:
Financial assets held for trading purpose:
Debt securities
139,074
69,686
-
208,760
Derivative financial assets held for trading purpose
-
438,395
-
438,395
Investment funds
5,441
-
-
5,441
Equity securities
2,996
-
27
3,023
Available-for-sale financial assets
Equity securities
-
-
2,610
2,610
Debt securities
14,977,906
1,666,128
-
16,644,034
Investments in associates and subsidiaries
169,019
-
214,890(*)
383,909
Total Financial Assets
15,294,436
2,174,209
217,527
17,686,172
Financial liabilities at fair value through profit/loss:
Derivative financial liabilities held for trading purpose
-
(219,480)
-
(219,480)
Total Financial Liabilities
-
(219,480)
-
(219,480)
(*)
These amounts consist of fair value of the affiliates and subsidiaries determined by independent valuation companies.