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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
7. Information on provisions
Information on general provisions
Current Period
Prior Period
Provisions for Loans and Receivables in Group I
15,567
8,741
Additional provisions for the loans with extended payment plan
-
-
Provisions for Loans and Receivables in Group II
54
12
Additional provisions for the loans with extended payment plan
-
-
Provisions for Non-Cash Loans
4,790
3,058
Other
-
-
Total
20,411
11,811
Provisions for currency exchange gain/loss on foreign currency indexed loans
Current Period
Prior Period
Foreign Exchange Provisions for Foreign Currency Indexed Loans (*)
-
509
(*) Foreign exchange differences of foreign currency indexed loans are netted off with loans.
Special provisions set aside for non-funded and non-cash loans
As of 31 December 2013, special provisions set aside for non-funded and non-cash loans are TL 589 (31 December 2012: TL 569)
Reserve for employee termination benefits
The Bank reserved for employee severance indemnities in the accompanying unconsolidated financial statements using actuarial
method in compliance with the updated TAS 19 - Employee Benefits. Accumulated all actuarial gains and losses in equity are
recognized in other capital reserves.
As at 31 December 2013 and 31 December 2012, the major actuarial assumptions used in the calculation of the total liability are as
follows:
Current Period
Prior Period
Discount Rate
%2.83
%2.86
Expected Rate of Salary/Limit Increase
%6.00
%5.00
Estimated Employee Turnover Rate
%5.42
%5.42
In accordance with existing Turkish Labour Law, the Bank is required to make lump-sum termination indemnities to each employee
who has completed one year of service with the Bank and whose employment is terminated due to retirement or for reasons other
than resignation or misconduct. The computation of the liability is based upon the retirement pay ceiling announced. The applicable
ceiling amount as at 31 December 2013 is TL 3,254 (full TL) (31 December 2012: TL 3,034 (full TL)). Reserve for employee
termination benefits are calculated via net present value of estimated provision of probable liabilities will be arised in the future and
reflected in the financial statements.
Movement of employee termination benefits are as follows:
Current Period
Prior Period
Balances at Beginning of Period
4,910
3,528
Provision booked in current period
738
1,799
Provision paid in current period (-)
1,376
417
Balances at End of the Period
4,272
4,910
The unused vacation provision amount as at 31 December 2013 is TL 3,310 (31 December 2012: TL 2,322)