Page 85 - A&T BANK ANNUAL REPORT 2012

83 82 A&T BANK 2012 ANNUAL REPORT •
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
Deferred taxes
The Bank calculates and accounts deferred tax assets and liabilities in accordance with the TAS 12 – Income Taxes; deferred
tax assets and liabilities are recognized on all taxable temporary differences arising between the carrying values of assets and
liabilities in the financial statements and their corresponding balances used for taxation purposes except for the differences not
deductible for tax purposes and initial recognition of assets and liabilities which affect neither accounting nor taxable profit.
If transactions and events are recorded in the statement of income, then the related tax effects are also recognized in the
statement of income. However, if transactions and events are recorded directly in the shareholders’ equity, the related tax
effects are also recognized directly in the shareholders’ equity.
The net amount of deferred tax receivables and deferred tax payables is shown on the financial tables.
Transfer Pricing
In Turkey, the transfer pricing provisions has been stated under the Article 13 of Corporate Tax Law with the heading of
“disguised profit distribution via transfer pricing”. The General Communiqué on disguised profit distribution via Transfer Pricing,
dated 18 November 2007 sets details about implementation.
If the companies enter into transactions concerning to the sale or the purchase of the goods or services with the related parties
by setting the prices or amounts which are not in line with the arm’s length principle, related profits will be treated as having
been wholly or partially distributed in a disguised way via transfer pricing. This kind of disquised profit distribution via transfer
pricing cannot be deducted from tax base in accordance with corporate tax.
XVII. Additional information on borrowings
Except for financial liabilities that are classified as held for trading derivatives which carried at fair values, all other financial
liabilities are initially recognized at cost including transaction costs and re-measured at amortized cost using the effective
interest rate method.
The Bank did not issue any stocks convertible into bonds.
The Bank does not have borrowing instruments issued by itself.
XVIII. Information on share issuances
The Bank has not issued any share in the year.
XIX. Information on bills of exchanges and acceptances
Acceptances are realized simultaneously with the payment dates of the clients and they are presented as commitments in off-
balance sheet accounts.
There are no acceptances presented as liabilities against any assets.