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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.)
General Information
Corporate Management
Financial Information
In accordance with existing Turkish Labour Law, the Bank is required to make lump-sum termination indemnities to each employee
who has completed one year of service with the Bank and whose employment is terminated due to retirement or for reasons other
than resignation or as mentioned in related regislation. The computation of the liability is based upon the retirement pay ceiling
announced. The applicable ceiling amount as at 31 December 2014 is TL 3,438 (full TL) (31 December 2013: TL 3,254 (full TL)).
Reserve for employee termination benefits are calculated via net present value of estimated provision of probable liabilities will be
arised in the future and reflected in the financial statements.
Movement of employee termination benefits are as follows:
Current Period
Prior Period
Balances at Beginning of period
4,666
5,228
Provision booked in current period
1,126
814
Provision paid in current period (-)
442
1,376
Balances at End of the Period
5,350
4,666
The employee termination benefit liability of the Group is the amount as at 31 December 2014 is TL 5,350
(31 December 2013: TL 4,666). In addition to this, the unused vacation provision and other employee benefits amount as at
31 December 2014 is TL 4,557 (31 December 2013: TL 4,069).
Information on other provisions
The provisions for probable risks
These financial statements include a free provision that is out of reporting standarts, amounting to TL 9,000 thousand which was
charged to the income statement in the current period, provided by the Bank management in line with the conservatism principle
considering the circumstances that may arise from any changes in the economy or market conditions.
In the case of the other provisions, exceeds the 10% of the total provisions, those accounts and balances
Current Period
Prior Period
Free provisions for possible risks
9,000
-
Provisions for non-cash loans
1,547
589
Provisions for law suits
67
43
8. Information on tax payables
Information on corporate tax liability
As of 31 December 2014, corporate tax payable after deducting the prepaid tax is TL 3,267 (31 December 2013: TL 3,773)