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ARAP TÜRK BANKASI A.Ş.
NOTES TO UNCONSOLIDATED FINANCIAL
STATEMENTS AT 31 DECEMBER 2013
( Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated. )
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL
STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
XIII. 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.
XIV. INFORMATION ON LEASING ACTIVITIES
Finance leasing activities as the lessor
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 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 Bank does not provide
financial leasing services as a lessor.
Transactions regarding operational leases are accounted on an accrual basis in accordance with the term of the related contracts.
Operational leases
Transactions regarding operational lease agreements are accounted on an accrual basis in accordance with the terms of the related
contracts.