182 / 276
180 A&T BANK ANNUAL REPORT 2015
ARAP TÜRK BANKASI ANONİM ŞİRKETİ
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AT 31 DECEMBER 2015
(AMOUNTS EXPRESSED IN THOUSANDS OF TURKISH LIRA (“TL”) UNLESS OTHERWISE STATED. )
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
SECTION THREE
EXPLANATIONS ON ACCOUNTING POLICIES
I. EXPLANATIONS FOR BASIS OF PRESENTATION AND FOOTNOTES
The consolidated financial statements are prepared within the scope of the “Regulation on Accounting Applications
for Banks and Safeguarding of Documents” related with Banking Act numbered 5411 published in the Official Gazette
no.26333 dated 1 November 2006 and other regulations related to reporting principles on accounting records of
Banks published by Banking Regulation and Supervision Agency and circulars and interpretations published by Banking
Regulation and Supervision Authority (together referred as BRSA Accounting and Reporting Legislation) and in case
where a specific regulation is not made by BRSA, Turkish Accounting Standards and Turkish Financial Reporting
Standards (“TFRS”) and related appendices and interpretations (referred as “Turkish Accounting Standards” or “TAS”)
put into effect by Public Oversight Accounting and Auditing Standards Authority (“POA”) (all referred as “Reporting
Standards”).
The format and content of the publicly announced consolidated financial statements and notes to these statements have
been prepared in accordance with the “Communiqué on Publicly Announced Financial Statements, Explanations and
Notes to These Financial Statements”, published in Official Gazette no. 28337, dated 28 June 2012, and amendments to
this Communiqué. The Bank maintains its books in Turkish Lira in accordance with the Banking Act, Turkish Commercial
Code and Turkish Tax Legislation.
Consolidated financial statements other than financial assets and liabilities that are presented with fair values, are
prepared in thousands of Turkish Lira and with cost value approach.
The preparation of consolidated financial statements requires the use of certain critical estimates on assets and liabilities
reported as of balance sheet date or amount of contingent assets and liabilities explained and amount of income and
expenses occurred in related period. Although these estimates rely on the management’s best judgment, actual results
can vary from these estimates. Judgements and estimates are explained in related notes.
For a correct perception of the financial statements, the accounting policies and valuation principles are explained
between in Notes No. II and XXIII.
There is not any different accounting policy applied while the preparation of the consolidated financial statements.
Explanation for convenience translation into English:
The differences between accounting principles, as described in these preceding paragraphs and accounting principles
generally accepted in countries in which consolidated financial statements are to be distributed and International
Financial Reporting Standards (“IFRS”) have not been quantified in these consolidated financial statements. Accordingly,
these consolidated financial statements are not intended to present the financial position, results of operations and
changes in financial position and cash flows in accordance with the accounting principles generally accepted in such
countries and IFRS.
II. INFORMATION ON STRATEGY FOR THE USE OF FINANCIAL INSTRUMENTS AND FOREIGN CURRENCY
TRANSACTIONS
The Bank’s core business operation is banking activities including corporate banking, commercial banking, security
transactions (treasury transactions) together with international banking services. The Parent Bank uses financial
instruments intensively because of the nature of the Parent Bank. The main funding resources are deposits, borrowing
and equity and these resources are invested in qualified financial assets. The Parent Bank follows the utilization of
resources and the risk and return for the investments in various financial assets through an effective asset and liability
management strategy.