Page 169 - A&T BANK ANNUAL REPORT 2012

167 166 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
Financial Assets Available-for-Sale
Financial assets available for sale are financial assets other than those classified as loans and receivables, financial assets held
to maturity and financial assets at fair value through profit or loss.
Debt securities classified as financial assets available-for-sale are subsequently re-measured at their fair values. Unrealized
gains and losses arising from changes in the fair value of securities classified as financial assets available for sale is reflected
in the equity marketable securities value increase fund. When these financial assets available for sale are disposed of or
collected the fair value differences accumulated under equity are transferred to the income statement.
Financial assets available for sale that have a quoted market price in an active market and whose fair values can be reliably
measured are carried at fair value. Financial assets available for sale that do not have a quoted market price and whose fair
values cannot be reliably measured are carried at cost, less provision for impairment.
Loans and Receivables
Loans and receivables are the financial assets raised by the Parent Bank providing money, commodity and services to debtors.
Loans are financial assets with fixed or determinable payments and not quoted in an active market.
Loans and receivables are recorded at cost and measured at amortized cost by using effective interest method. The duties
paid, transaction expenditures and other similar expenses on assets received against such risks are considered as a part of
transaction cost and charged to customers.
Financial Assets Held to Maturity
Held-to-maturity securities are financial assets that are not classified as loans and receivables with fixed maturities and pre-
determinable payments that the Group has the intent and ability to hold until maturity. The financial assets held to maturity
are initially recognized at cost and subsequently carried at amortized cost using effective interest method with internal rate
of return after deducting impairments, if any. Interest earned on financial assets held-to-maturity is recognized as interest
income in the statement of income.
There are no financial assets that were previously classified as held to maturity but cannot be subject to this classification for
two years due to the violation of the tainting rule.
Associates and Subsidiaries
Subsidiaries are the entities that the Group 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 39 – Financial Instruments: Recognition
and Measurement in the consolidated 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 consolidated financial statements with
their costs after deducting impairment losses, if any.