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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
4
GENERAL INFORMATION
50
CORPORATE MANAGEMENT
67
FINANCIAL INFORMATION
A&T BANK 2013 ANNUAL REPORT
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 lessee
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 consolidated 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 Group does not provide
financial leasing services as a lessor.
Finance leasing activities as the lessor
The total of minimum rent amounts are recorded at “finance lease receivables” account in gross amounts comprising the principal
amounts and interests. The interest, the difference between the total of rent amounts and the cost of the fixed assets, is recorded at
“unearned income” account. As the rents are collected, “finance lease receivables” account is decreased by the rent amount; and the
interest component is recorded at consolidated income statement as interest income.
Operational leases
Transactions regarding operational lease agreements are accounted on an accrual basis in accordance with the terms of the related
contracts.
Transactions regarding operational leases are accounted on an accrual basis in accordance with the term of the related contracts.