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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
XVIII. ADDITIONAL INFORMATION ON BORROWINGS
Except for financial liabilities that are classified as held for trading derivatives which carried at fair values, all other financial liabilities are
initially recognized at cost including transaction costs and re-measured at amortized cost using the effective interest rate method.
The Group did not issue any stocks convertible into bonds.
The Group does not have borrowing instruments issued by itself.
XIX. INFORMATION ON SHARE ISSUANCES
The Group has not issued any share in the year.
XX. INFORMATION ON BILLS OF EXCHANGES AND ACCEPTANCES
Acceptances are realized simultaneously with the payment dates of the clients and they are presented as commitments in off-balance
sheet accounts.
There are no acceptances presented as liabilities against any assets.
XXI. INFORMATION ON GOVERNMENT INCENTIVES
As of 31 December 2013, A&T Finansal Kiralama A.Ş has TL 10,366 (31 December 2012: TL 13,517) of unutilized investment
incentive.
XXII. INFORMATION ON SEGMENT REPORTING
Operating segment is the unit that operates in only one product or service of the Group or the group of products or services which are
related each other and differs from other units from the point of risk and profit. Operating segments are presented in the footnote VI of
Fourth Section.
XXIII. OTHER DISCLOSURES
Profit reserves and profit distribution
Retained earnings as per the statutory consolidated financial statements other than legal reserves are available for distribution, subject
to legal reserve requirement referred to below.
The legal reserves are comprised of first and second reserves, in accordance with the Turkish Commercial Code (“TCC”). The first legal
reserve is appropriated out of the profits at the rate of 5% until the total reserve reaches a maximum of 20% of the Parent Bank’s paid
in capital. The second legal reserve is appropriated at the rate of 10% of all distributions in excess of the 5% of the Company’s share
capital; however holding companies are not subject to this application. First and second legal reserves can only be used to compensate
accumulated losses and cannot be used for profit distribution unless they exceed 50% of paid-in capital.
Related parties
In accompanying consolidated financial statements, shareholders, key management personnel and board members together with their
families and companies controlled by or affiliated by them associated and jointly controlled entities are considered as Related Parties
in compliance with TAS 24 - Related Party Disclosures Standard.
Cash and cash equivalents
In the cash flows statements “Cash” refers to cash in vault, cash in transit, bank cheques purchased and demand deposits in banks
including Central Bank of Turkey; “Cash equivalent” refers to money market placements and time deposits at banks which has original
maturity less than three months.