183 / 276
181
FINANCIAL INFORMATION
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
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. )
The transactions in foreign currency are recorded in accordance with “TAS 21 - Effects of Exchange Rate Changes”.
Related gain and loss occurred due to the changes in exchange rates resulted by the foreign currency transactions are
translated into Turkish Lira over the effective exchange rate prevailing at the date of the transaction and is recorded
accordingly.
At the end of the related periods, foreign currency assets and liability balances outstanding are translated into Turkish
Lira over the Group’s exchange rates prevailing at the balance sheet date in the Parent Bank financial statements,
whereas for other associations over CBRT rates subjected to evaluation.
III. INFORMATION ON CONSOLIDATED ASSOCIATES AND SUBSIDIARIES
The accompanying consolidated financial statements are prepared in accordance with “Communiqué on Preparation of
Consolidated Financial Statements” which is published in the Official Gazette No. 26340 dated November 8, 2006. The
Parent Bank directly owns the shares of A&T Finansal Kiralama A.Ş. and this subsidiary is consolidated accordingly. As of
31 December 2015 and 31 December 2014, the Parent Bank has no associates.
A&T Finansal Kiralama Anonim Şirketi, was founded in 1997 with the aim to provide financial leasing services.
The Parent Bank and its subsidiary A&T Finansal Kiralama A.Ş that is included in consolidation are together referred to as
“Group” in the disclosures and footnotes related to the consolidated financial statements.
“Full Consolidation” method has been applied in consolidating the financial statements of the Bank with the financial
statements of its subsidiary. In accordance with this method, the financial statements of the Parent Bank and its
subsidiary are combined on a line-by-line basis by adding together the all items of assets, liabilities, income, expenses
and off-balance sheet items, in preparing consolidated financial statements. Minority interests are presented separately
in the consolidated balance sheet and consolidated statement of income.
The major principles applied in the consolidation of subsidiaries
The carrying amount of the Parent Bank’s net investment in the subsidiary and the Parent Bank’s portion of equity of the
subsidiary are eliminated.
All intercompany transactions and intercompany balances between the consolidated subsidiary and the Parent Bank are
eliminated.
The financial statements which have been used in the consolidation are prepared as of 31 December 2015 and
appropriate adjustments are made to financial statements to use uniform accounting policies for similar transactions and
events in similar circumstances.
IV. INFORMATION ON FORWARD TRANSACTIONS, OPTIONS AND DERIVATIVE INSTRUMENTS
The Group financial derivatives are classified as “held for trading” in accordance with “TAS - 39 Financial Instruments:
Recognition and Measurement”.
Derivatives are initially recorded at their purchase costs including the transaction costs. The notional amounts of
derivative transactions are recorded in off-balance sheet accounts based on their contractual amounts.
The derivative transactions are measured at fair value subsequent to initial recognition and if the fair value of a derivative
financial instrument is positive, it is disclosed under the main account fair values of financial assets through profit or
loss” in trading derivative financial instruments and if the fair value difference is negative, it is disclosed under trading
derivative financial liabilities.