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A&T BANK 2014 FAALİYET RAPORU
Convenience Translation of Publicly Announced Consolidated Fınancial
Statements Originally Issued in Turkish, See Note I of Section Three
Arap Türk Bankası A.Ş.
Notes to Consolidated Financial
Statements at 31 December 2014
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
ANNU L R PORT 2014
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.
XV. INFORMATION ON PROVISIONS AND CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions and contingent liabilities are provided for in accordance with the TAS 37-Provisions, Contingent Liabilities and Contingent
Assets, except for the general and specific provisions set aside for the loans and other receivables.
Provisions are recognized when the Bank has a present legal or constructive obligation as a result of past events, it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of
obligation can be made.
A provision for contingent liabilities arising from past events should be recognized in the same period of occurrence if it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate the amount of
the obligation can be made.