Page 82 - A&T BANK ANNUAL REPORT 2012

GENERAL INFORMATION
CORPORATE MANAGEMENT
FINANCIAL INFORMATION
ARAP TÜRK BANKASI ANONİM ŞİRKETİ
UNCONSOLIDATED 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
XI. Information on goodwill and other intangible assets
There is no goodwill in the accompanying financial statements related to the acquisition of a subsidiary.
The Bank’s intangible assets consist of software.
Intangible assets are initially recorded at their costs in compliance with the TAS 38 – Intangible Assets.
The costs of the intangible assets purchased before 31 December 2004 are restated from the purchasing dates to 31 December
2004, the date the hyperinflationary period is considered to be ended. The intangible assets purchased after this date are
recorded at their historical costs. The intangible assets are amortized based on straight line amortization. The useful life of
software is determined as 5 years.
If there is 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.
XII. Information on tangible assets
The costs of the tangible assets purchased before 31 December 2004 are restated from the purchasing dates to 31 December
2004, the date the hyperinflationary period is considered to be ended. In subsequent periods no inflation adjustment is made
for tangible assets, and costs which are restated as of 31 December 2004 are considered as their historical costs. Tangible
assets purchased after 1 January 2005 are recorded at their historical costs after foreign exchange differences and financial
expenses are deducted, if any.
Gains and losses arising from the disposal of the tangible assets are calculated as the difference between the net book value
and the net sales price and recognized in the income statement of the period.
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 Bank 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.