Page 170 - A&T BANK ANNUAL REPORT 2012

GENERAL INFORMATION
CORPORATE MANAGEMENT
FINANCIAL INFORMATION
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
VIII. Information on impairment of Financial Assets
Financial assets or group of financial assets are reviewed at each balance sheet date to determine whether there is objective
evidence of impairment. If any such indication exists, the Group estimates the amount of impairment.
Impairment loss incurs if, and only if, there is objective evidence that the expected future cash flows of financial asset or
group of financial assets are adversely affected by an event(s) (“loss event(s)”) incurred subsequent to recognition. The losses
expected to incur due to future events are not recognized even if the probability of loss is high.
If there is an objective evidence that certain loans will not be collected, for such loans; the Group provides specific and general
allowances for loan and other receivables classified in accordance with the Regulation on Identification of and Provision against
Non-Performing Loans and Other Receivables published on the Official Gazette no. 26333 dated 1 November 2006 and the
amendments to this regulation. The allowances are recorded in the statement of income of the related period.
Provision in prior periods has been collected which is provisioned accounts are recorded under other operating income is
deducted. Is collected which is provisioned in the same year, the impairment loss is deducted from loans and other receivables.
If there is objective evidence that certain leasing receivables will not be collected; the Group assess that receivables in
accordance with the Regulation on Identification of and Provision against Non-Performing Receivables of Financial Leasing,
Factoring and Financing Companies published on the Official Gazette no.26588 dated 20 July 2007.
IX. Information on offsetting financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if, and only if, there is a
currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize
the asset and settle the liability simultaneously.
X. Information on sale and repurchase agreements and lending of financial assets
Repurchase (“repo”) and resale (“reverse repo”) agreements of financial assets are followed at the balance sheet accounts.
Financial assets which are sold to customers under repurchase agreements are categorized according to initial classification
and are measured in accordance with the accounting policy of the related portfolio.
Funds obtained under repurchase agreements are accounted under funds provided under repurchase agreements in liability
accounts. The interest expense accruals are calculated by means of internal rate of return method over the difference resulting
from repurchase and sale prices for the relevant period.
Securities subject to repurchase (“reverse repo”) agreements are reflected under receivables from reverse repurchase
agreements. The difference between the purchase and resell price which is related with the period is computed with the
effective interest rate method for accrued interest income.