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80 A&T BANK ANNUAL REPORT 2015
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. )
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
Intangible assets are initially recorded at their costs in compliance with the “TAS 38 - Intangible Assets”.
The costs of the intangible assets purchased before 31 December 2004 are restated from the purchasing dates to 31
December 2004, the date the hyperinflationary period is considered to be ended. The intangible assets purchased after
this date are recorded at their historical costs. The intangible assets are amortized based on straight line amortization.
The useful life of software is determined as 3-15 years.
If there is objective evidence of impairment, the asset’s recoverable amount is estimated in accordance with the “TAS 36
- Impairment of Assets” and if the recoverable amount is less than the carrying value of the related asset, a provision for
impairment loss is made.
XIII. INFORMATION ON TANGIBLE ASSETS
The costs of the tangible assets purchased before 31 December 2004 are restated from the purchasing dates to 31
December 2004, the date the hyperinflationary period is considered to be ended. In subsequent periods no inflation
adjustment is made for tangible assets, and costs which are restated as of 31 December 2004 are considered as their
historical costs. Tangible assets purchased after 1 January 2005 are recorded at their historical costs after foreign
exchange differences and financial expenses are deducted if any.
Gains and losses arising from the disposal of the tangible assets are calculated as the difference between the net book
value and the net sales price and recognized in the income statement of the period.
Maintenance and repair costs incurred for tangible assets are recorded as expense. Expenditures incurred that extend
the useful life and service capacity of the assets are capitalized.
The depreciation rates used approximate the rates of the useful life of the tangible assets are as follows:
Tangible Assets
Estimated Useful Life (Years)
Depreciation Rate (%)
Buildings
50
2
Motor vehicles
5
20
Office equipment, furniture and fixture
3-50
2-33
There are no changes in the accounting estimates that are expected to have an impact in the current or subsequent
periods.
At each reporting date, the Bank evaluates whether there is objective evidence of impairment on its assets. If there is
an objective evidence of impairment, the asset’s recoverable amount is estimated in accordance with the “TAS 36 -
Impairment of Assets” and if the recoverable amount is less than the carrying value of the related asset, a provision for
impairment loss is made.
XIV. INFORMATION ON LEASING ACTIVITIES
Finance leasing activities as the lessor
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 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.