Basic HTML Version
96
ARAP TÜRK BANKASI A.Ş.
NOTES TO UNCONSOLIDATED FINANCIAL
STATEMENTS AT 31 DECEMBER 2013
( Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated. )
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL
STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
SECTION THREE
EXPLANATIONS ON ACCOUNTING POLICIES
I. EXPLANATIONS FOR BASIS OF PRESENTATION AND FOOTNOTES
The Bank maintains its books of accounts in Turkish Lira in accordance with the Banking Act No. 5411 (“Banking Act”), which are
effective from 1 November 2005, the Turkish Commercial Code (“TCC”) and Turkish tax legislation.The unconsolidated financial
statements are prepared in accordance with the “Regulation on the Principles and Procedures Regarding Banks’ Accounting
Application and Keeping Documents” published in the Official Gazette No. 26333 dated 1 November 2006 by the BRSA (“Banking
Regulation and Supervision Agency”) which refers to “Turkish Accounting Standards” (“TAS”) and “Turkish Financial Reporting
Standards”(“TFRS”) issued by the Public Oversight Accounting and Auditing Standards Authority and other decrees, notes and
explanations related to the accounting and financial reporting principles published by the BRSA (all defined as “BRSA principles”). The
format and the details of the publicly announced financial statements and related disclosures to these statements have been prepared
in accordance with the “Communiqués Related to Publicly Announced Financial Statements of Banks and Explanations and Notes
Related to these Financial Statements” published in the Official Gazette No. 28337 dated 28 June 2012.
Unconsolidated financial statements other than financial assets and liabilities that are presented with fair values, are prepared in
thousands of TL and with cost value approach.
For a correct perception of the financial statements, the accounting policies and valuation principles are explained between in Notes
No. II and XXIII.
Explanation for convenience translation into English:
The differences between accounting principles, as described in these preceding paragraphs and accounting principles generally
accepted in countries in which unconsolidated financial statements are to be distributed and International Financial Reporting
Standards (“IFRS”) have not been quantified in these unconsolidated financial statements. Accordingly, these unconsolidated financial
statements are not intended to present the financial position, results of operations and changes in financial position and cash flows in
accordance with the accounting principles generally accepted in such countries and IFRS.
II. INFORMATION ON STRATEGY FOR THE USE OF FINANCIAL INSTRUMENTS AND FOREIGN CURRENCY
TRANSACTIONS
The Bank’s core business operation is banking activities including corporate banking, commercial banking, retail banking and security
transactions (treasury transactions) together with international banking services. The Bank uses financial instruments intensively
because of the nature of the Bank. The main funding resources are deposits, borrowing and equity and these resources are invested
in qualified financial assets. The Bank follows the utilization of resources and the risk and return for the investments in various financial
assets through an effective asset and liability management strategy.
The transactions in foreign currency are recorded in accordance with TAS 21 - Effects of Exchange Rate Changes. Related gain and
loss occurred due to the changes in exchange rates resulted by the foreign currency transactions are translated into TL over the
effective exchange rate prevailing at the date of the transaction and is recorded accordingly. At the end of the related periods, foreign
currency assets and liability balances outstanding are translated into Turkish Lira over the Bank’s exchange rates prevailing at the
balance sheet date and the resulting exchange rate differences are accounted as foreign exchange gains and losses.
III. EXPLANATIONS ON INVESTMENTS IN SUBSDIARIES
Subsidiaries are the entities that the Bank has the power to govern the financial and operating policies of those so as to obtain benefits
from its activities. Subsidiaries are accounted in accordance with “TAS 27 - Individual Financial Statements” in the unconsolidated
financial statements. Subsidiaries are recorded at fair value. Subsidiaries which are not traded in an active market and whose fair value
cannot be reliably set are reflected in financial statements with their costs after deducting impairment losses, if any.