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ARAP TÜRK BANKASI A.Ş.
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS AT 31 DECEMBER 2013
( Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated. )
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS
ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
SECTION THREE
EXPLANATIONS ON ACCOUNTING POLICIES
I. EXPLANATIONS FOR BASIS OF PRESENTATION AND NOTES
The Parent Bank maintains its books of accounts in Turkish Lira in accordance with the Banking Act No. 5411 (“Banking Act”), which
are effective from 1 November 2005, the Turkish Commercial Code (“TCC”) and Turkish tax legislation.
The consolidated financial statements are prepared in accordance with the “Regulation on the Principles and Procedures Regarding
Banks’ Accounting Application and Keeping Documents” published in the Official Gazette No. 26333 dated 1 November 2006 by
the BRSA (“Banking Regulation and Supervision Agency”) which refers to “Turkish Accounting Standards” (“TAS”) and “Turkish
Financial Reporting Standards”(“TFRS”) issued by the Public Oversight Accounting and Auditing Standards Authority (“POA”) and
other decrees, notes and explanations related to the accounting and financial reporting principles published by the BRSA (all defined
as “BRSA principles”). The format and the details of the publicly announced financial statements and related disclosures to these
statements have been prepared in accordance with the “Communiqués Related to Publicly Announced Financial Statements of Banks
and Explanations and Notes Related to these Financial Statements” published in the Official Gazette No. 28337 dated 28 June 2012.
Consolidated financial statements other than financial assets and liabilities that are presented with fair values, are prepared in
thousands of TL and with cost value approach.
For a correct perception of the financial statements, the accounting policies and valuation principles are explained between in Notes
No. II and XXIII.
There is not any different accounting policy applied while the preparation of the consolidated financial statements.
Explanation for convenience translation into English:
The differences between accounting principles, as described in these preceding paragraphs and accounting principles generally
accepted in countries in which unconsolidated financial statements are to be distributed and International Financial Reporting
Standards (“IFRS”) have not been quantified in these unconsolidated financial statements. Accordingly, these unconsolidated financial
statements are not intended to present the financial position, results of operations and changes in financial position and cash flows in
accordance with the accounting principles generally accepted in such countries and IFRS.
II. INFORMATION ON STRATEGY FOR THE USE OF FINANCIAL INSTRUMENTS AND FOREIGN CURRENCY
TRANSACTIONS
The Bank’s core business operation is banking activities including corporate banking, commercial banking, security transactions
(treasury transactions) together with international banking services. The Parent Bank uses financial instruments intensively because
of the nature of the Parent Bank. The main funding resources are deposits, borrowing and equity and these resources are invested
in qualified financial assets. The Parent Bank follows the utilization of resources and the risk and return for the investments in various
financial assets through an effective asset and liability management strategy.
The transactions in foreign currency are recorded in accordance with TAS 21 – Effects of Exchange Rate Changes. Related gain
and loss occurred due to the changes in exchange rates resulted by the foreign currency transactions are translated into TL over the
effective exchange rate prevailing at the date of the transaction and is recorded accordingly.
At the end of the related periods, foreign currency assets and liability balances outstanding are translated into Turkish Lira over the
Group’s exchange rates prevailing at the balance sheet date in the Parent Bank financial statements, whereas for other associations
over CBRT rates subjected to evaluation.
III. INFORMATION ON CONSOLIDATED ASSOCIATES AND SUBSIDIARIES
The accompanying consolidated financial statements are prepared in accordance with “Communiqué on Preparation of Consolidated
Financial Statements” which is published in the Official Gazette No. 26340 dated November 8, 2006. The Parent Bank directly owns
the shares of A&T Finansal Kiralama A.Ş. and this subsidiary is consolidated accordingly. As at 31 December 2013 and 31 December
2012, the Parent Bank has no associates.