184 İşbank
Annual Report 2015
Türkiye İş Bankası A.Ş.
Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2015
United Arab Emirates
The companies operating in the free zones of Dubai are not subject to tax according to the country’s legislation.
4. Transfer Pricing:
Transfer pricing is regulated through Article 13 of Corporate Tax Law titled “Transfer Pricing through Camouflage of Earnings”. Detailed information for the practice regarding the
subject is found in the “General Communiqué Regarding Camouflage of Earnings through Transfer Pricing”.
According to the aforementioned regulations, in the case of making purchase or sales of goods or services with relevant persons/corporations at a price that is determined against
“arm’s length principle”, the gain is considered to be distributed implicitly through transfer pricing and such distribution of gains is not subject to deductions in means of corporate tax.
XXII. Borrowings
The Parent Bank and its consolidated Group companies whenever required, generates funds from individuals and institutions residing domestically and abroad by approaching the
borrowing instruments in the form of syndication, securitization, collateralized borrowing and issue of bonds/bills. Such transactions are at first carried at acquisition cost, and in the
following periods they are valued at amortized cost measured by using the internal rate of return method.
In case that valuation differences in amortized cost borrowings with their associated financial instruments arise, to eliminate or reduce this inconsistency those debt instruments are
recognized in fair value as per TAS 39 “Financial Instruments: Recognition and Measurement”.
XXIII. Equity Shares and Issuance of Equity Shares
Share issuance related to costs is recognized as expenses.
Dividend income related with the equity shares are determined by the General Assembly of the Shareholders.
Weighted average number of shares outstanding is taken into account in the calculation of earnings per share. In case the number of shares increases by way of bonus issues as a
result of the capital increases made by using the internal sources, the calculation of earnings per share is made by adjusting the weighted average number of shares, which were
previously calculated as at the comparable periods. The adjustment means that the number of shares used in calculation is taken into consideration as if the bonus issue occurred at
the beginning of the comparable period. In case such changes in the number of shares occur after the balance sheet date, but before the ratification of the financial statements to
be published, the calculation of earnings per share are based on the number of new shares. The Parent Bank’s earnings per share calculations taking place in the consolidated income
statement are as follows.
Current Period
Prior Period
Group’s net profit
3,330,740
3,523,719
Weighted average number of shares (thousands)
112,502,250
112,502,250
Earnings per share – (in exact TL)
0.029605986
0.031321320
XXIV. Bank Acceptances and Bills of Guarantee
Bill guarantees and acceptances are realized simultaneously with the customer payments and they are presented as possible liabilities and commitments in the off-balance sheet
accounts.
XXV. Government Incentives
None.
XXVI. Segment Reporting
Business segment is the part of an enterprise,
- which conducts business operations where it can gain revenues and make expenditures (including the revenues and expenses related to the transactions made with the other parts
of the enterprise),
- whose operating results are regularly monitored by the authorities with the power to make decisions related to the operations of the enterprise in order to make decisions related to
the funds to be allocated to the segment and to evaluate the performance of the segment, and which has its separate financial information.
Information on the Group’s business segmentation and related information is explained in Section Four Note XVI.
XXVII. Other Disclosures
The consolidated subsidiaries, İş Gayrimenkul Yatırım Ortaklığı and TSKB Gayrimenkul Yatırım Ortaklığı’s investments which they have a 50% share in capital was reclassified from
investment in associates to investments in joint ventures in the current period and the same reclassification is made in 31 December 2014 comparative financial statements.
In order to be consistent on the financial statements, reclassifications have been made on statement of income in the interest income items of the comparable financial statements
for the year ending 31 December 2014.
