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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
XI. INFORMATION ON ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
An asset that is classified as held for sale (or to be discarded fixed assets) is measured with its book value or cost deducted fair value,
depending on the lower one. An asset to be classified asset held for sale, particular asset (or to be discarded fixed assets) should
be similar to these types of assets and should be able to be sold immediately with commonly accepted terms and conditions. Asset
should be marketed in line with its fair value. For selling probability to be high, relevant management level should plan the sale and
should finalize the plan by determining the buyers.
Assets held for sale are comprised of tangible assets acquired due to non performing receivables, and are accounted in the financial
statements in accordance with the “Regulation On The Disposals of The Commodities and Properties Acquired Due to Receivables
and The Purchase and Sale of Precious Metals by Banks” dated 1 November 2006 and published on the Official Gazette No.26333.
A discontinued operation is classified as the Group’s assets discarded or assets held for sales. Information on discontinued operations
is presented separately in consolidated income statement. As at reporting date, the Group does not have any discontinued operations.
XII. INFORMATION ON GOODWILL AND OTHER INTANGIBLE ASSETS
There is no goodwill in the accompanying financial statements related to the acquisition of a subsidiary.
The Group’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.
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.