Page 172 - 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
Maintenance and repair costs incurred for tangible assets are recorded as expense. Expenditures incurred that extend the
useful life and service capacity of the assets are capitalized.
The depreciation rates used approximate the rates of the useful life of the tangible assets are as follows:
Tangible assets Estimated useful life (Years) Depreciation Rate (%)
Buildings 50 2
Motor vehicles 5 20
Office equipment, furniture and fixture 5-50 2-20
There are no changes in the accounting estimates that are expected to have an impact in the current or subsequent periods.
At each reporting date, the Group evaluates whether there is objective evidence of impairment on its assets. If there is an
objective evidence of impairment, the asset’s recoverable amount is estimated in accordance with the TAS 36 – Impairment
of Assets and if the recoverable amount is less than the carrying value of the related asset, a provision for impairment loss is
made.
XIV. Information on leasing activities
Finance leasing activities as the lessee
Tangible assets acquired by way of finance leasing are recognized in tangible assets and the obligations under finance
leases arising from the lease contracts are presented under “Finance Lease Payables” account in the consolidated financial
statements. In the determination of the related assets and liabilities, the lower of the fair value of the leased asset and the
present value of leasing payments is considered. Financial costs of leasing agreements are expanded in lease periods at a
fixed interest rate.
If there is impairment in the value of the assets obtained through financial lease and in the expected future benefits, the leased
assets are valued with net realizable value. Depreciation for assets obtained through financial lease is calculated in the same
manner as tangible assets.
Interest and exchange rate expenses related to financial leasing are recognized in the income statement. The Group does not
provide financial leasing services as a lessor.
Finance leasing activities as the lessor
The total of minimum rent amounts are recorded at “finance lease receivables” account in gross amounts comprising the
principal amounts and interests. The interest, the difference between the total of rent amounts and the cost of the fixed assets,
is recorded at “unearned income” account. As the rents are collected, “finance lease receivables” account is decreased by the
rent amount; and the interest component is recorded at consolidated income statement as interest income.
Operational leases
Transactions regarding operational lease agreements are accounted on an accrual basis in accordance with the terms of the
related contracts.
Transactions regarding operational leases are accounted on an accrual basis in accordance with the term of the related
contracts.