Page 167 - A&T BANK ANNUAL REPORT 2012

165 164 A&T BANK 2012 ANNUAL REPORT •
ARAP TÜRK BANKASI ANONİM ŞİRKETİ
CONSOLIDATED FINANCIAL REPORT
AS OF 31 DECEMBER 2012
(Currency: Thousands of Turkish Lira (“TL”) unless otherwise stated)
Convenience Translation of Consolidated Financial
Report Originally Issued in Turkish
See Note on I. in Section Three
III. Information on consolidated associates and subsidiaries
The accompanying consolidated financial statements are prepared in accordance with “Communiqué on Preparation of
Consolidated Financial Statements” which is published in the Official Gazette No. 26340 dated November 8, 2006.
The Parent Bank directly owns the shares of A&T Finansal Kiralama A.Ş. and this subsidiary is consolidated accordingly. As at
December 31, 2012 and 2011, the Parent Bank has no associates.
A&T Finansal Kiralama Anonim Şirketi, was founded in 1997 with the aim to provide financial leasing services.
The Parent Bank and its subsidiary A&T Finansal Kiralama A.Ş that is included in consolidation are together referred to as
“Group” in the disclosures and footnotes related to the consolidated financial statements.
“Full Consolidation” method has been applied in consolidating the financial statements of the Bank with the financial
statements of its subsidiary. In accordance with this method, the financial statements of the Parent Bank and its subsidiary are
combined on a line-by-line basis by adding together the all items of assets, liabilities, income, expenses and off-balance sheet
items, in preparing consolidated financial statements. Minority interests are presented separately in the consolidated balance
sheet and consolidated statement of income.
The major principles applied in the consolidation of Subsidiaries
The carrying amount of the Parent Bank’s net investment in the subsidiary and the Bank’s portion of equity of the subsidiary
are eliminated.
All intercompany transactions and intercompany balances between the consolidated subsidiary and the Parent Bank are
eliminated.
The financial statements which have been used in the consolidation are prepared as of 31 December 2012 and appropriate
adjustments are made to financial statements to use uniform accounting policies for similar transactions and events in similar
circumstances.
IV. Information on forward transactions, options and derivative instruments
The Group financial derivatives are classified as “Held for Trading” in accordance with TAS – 39 Financial Instruments:
Recognition and Measurement.
Derivatives are initially recorded at their purchase costs including the transaction costs. The notional amounts of derivative
transactions are recorded in off-balance sheet accounts based on their contractual amounts.
The derivative transactions are measured at fair value subsequent to initial recognition and if the fair value of a derivative
financial instrument is positive, it is disclosed under the main account fair values of financial assets through profit or loss”
in trading derivative financial instruments and if the fair value difference is negative, it is disclosed under trading derivative
financial liabilities. Gains and losses arising from a change in fair value of trading derivatives after the re measurement are
accounted in the income statement. The fair value of the derivative financial instruments is calculated using quoted market
prices by using discounted cash flows model.