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TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND ITS FINANCIAL SUBSIDIARIES
CONSOLIDATED FINANCIAL REPORT AS AT AND
FOR THE YEAR ENDED 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
VAKIFBANK
2014 ANNUAL REPORT
V. INFORMATION AND DISCLOSURES RELATED TO CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
1. Information on increases of valuation differences of available-for-sale investments
Movement tables related to valuation differences of available-for-sale investments where valuation differences arising from the fair value measurement of
available-for-sale assets, subsidiaries and affiliates are recorded are as follows:
Valuation differences of marketable securities
Current Period
Prior Period
Valuation differences at the beginning of the year
(202,685)
757,401
Fair value changes in the current year
616,312
(798,682)
Effect of deferred and corporate taxes
(119,922)
91,747
Valuation differences transferred to the statement of income
210,155
(246,869)
Effect of deferred and corporate taxes
(42,031)
(6,282)
Valuation differences at the end of the year
461,829
(202,685)
Valuation difference of the subsidiaries and affiliates
Current Period
Prior Period
Valuation differences at the beginning of the year
52,966
(36,590)
Fair value changes in the current year
7,498
90,100
Effect of deferred and corporate taxes
(763)
(544)
Valuation differences transferred to the statement of income
-
-
Effect of deferred and corporate taxes
-
-
Valuation differences at the end of the year
59,701
52,966
2. Information on increases in cash flow hedges
None.
3. Reconciliation of the beginning and end of the year balances of foreign exchange differences
As at 31 December 2014, foreign currency translation differences amounting of TL (15,664) (31 December 2013: TL 73,162), arising as a result of the
conversion of the financial statements of the foreign subsidiaries into TL, have benn booked under other reserves in the consolidated financial statements.
4. Information on differences in equity accounts due to inflation accounting
In compliance with BRSA’s Circular on 28 April 2005 on ceasing the inflation accounting application, the balances resulted from the inflation accounting
application as at 31 December 2004 and booked according to the Uniform Chart of Accounts and the related Articles, are transferred to the main accounts that
were subject to the inflation accounting adjustments except for “capital reserves from inflation adjustments”. The balance of “capital reserves from inflation
adjustments” account is transferred to “other capital reserves” account. In 2006, the Parent Bank has increased its paid in capital through “other capital
reserves” by TL 605,763.
5. Information on profit distribution
As per the resolution of 60th Annual General Assembly held on 28 March 2014, it was decided to distribute the net profit of the year 2013 after the deduction
of deferred tax income amounting to TL 1,585,539 as legal reserves amounting to TL 158,556, dividends to equity holders of the Bank amounting to TL
100,000, extraordinary reserves amounting to TL 1,325,482 and special funds amounting to TL 1,501.
6. Information on increases of valuation differences of available-for-sale investments
Valuation differences of available-for-sale financial assets has increased in the current year. Detailed information about the increase is explained below in Note 1.