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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 UNCONSOLIDATED FINANCIAL STATEMENTS
AT 31 DECEMBER 2015
(AMOUNTS EXPRESSED IN THOUSANDS OF TURKISH LIRA (“TL”) UNLESS OTHERWISE STATED. )
Impairment loss incurs if, and only if, there is objective evidence that the expected future cash flows of financial asset or
group of financial assets are adversely affected by an event(s) (“loss event(s)”) incurred subsequent to recognition. The
losses expected to incur due to future events are not recognized even if the probability of loss is high.
If there is an objective evidence that certain loans will not be collected, for such loans; the Bank provides specific and
general allowances for loan and other receivables classified in accordance with the “Regulation on Identification of and
Provision against Non-Performing Loans and Other Receivables” published on the Official Gazette No.26333 dated
1 November 2006 and the amendments to this regulation. The allowances are recorded in the statement of income of
the related period.
Provision in prior periods has been collected which is provisioned accounts are recorded under other operating income
is deducted. Receivables collected which is provisioned in the same year, the impairment loss is deducted from loans and
other receivables.
IX. INFORMATION ON OFFSETTING FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if, and only if, there
is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis,
or to realize the asset and settle the liability simultaneously.
X. INFORMATION ON SALE AND REPURCHASE AGREEMENTS AND LENDING OF FINANCIAL ASSETS
Repurchase (“repo”) and resale (“reverse repo”) agreements of financial assets are followed at the balance sheet
accounts. Financial assets which are sold to customers under repurchase agreements are categorized according to initial
classification and are measured in accordance with the accounting policy of the related portfolio.
Funds obtained under repurchase agreements are accounted under funds provided under repurchase agreements in
liability accounts. The interest expense accruals are calculated by means of internal rate of return method over the
difference resulting from repurchase and sale prices for the relevant period.
Securities subject to repurchase (“reverse repo”) agreements are reflected under receivables from reverse repurchase
agreements. The difference between the purchase and resell price which is related with the period is computed with the
effective interest rate method for accrued interest income.
XI. INFORMATION ON ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
An asset that is classified as held for sale (or to be discarded fixed assets) is measured with its book value or cost
deducted fair value, depending on the lower one. An asset to be classified asset held for sale, particular asset (or to
be discarded fixed assets) should be similar to these types of assets and should be able to be sold immediately with
commonly accepted terms and conditions. Asset should be marketed in line with its fair value. For selling probability to
be high, relevant management level should plan the sale and should finalize the plan by determining the buyers.
Assets held for sale are comprised of tangible assets acquired due to non performing receivables, and are accounted
in the financial statements in accordance with the “Regulation On The Disposals of The Commodities and Properties
Acquired Due to Receivables and The Purchase and Sale of Precious Metals by Banks” dated 1 November 2006 and
published on the Official Gazette No.26333.
A discontinued operation is classified as the Bank’s assets discarded or assets held for sales. Information on discontinued
operations is presented separately in consolidated income statement. As at reporting date, the Bank does not have any
discontinued operations.
XII. INFORMATION ON GOODWILL AND OTHER INTANGIBLE ASSETS
There is no goodwill in the accompanying financial statements related to the acquisition of a subsidiary.
The Bank’s intangible assets consist of software.