212 İşbank
Annual Report 2015
Türkiye İş Bankası A.Ş.
Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2015
XIV. Explanations on Presentation of Assets and Liabilities at Fair Value
1. Information on fair values of financial assets and liabilities
Book Value
Fair Value
Current Period
Prior Period
Current Period
Prior Period
Financial Assets
Money Market Placements
1,308,203
263,559
1,308,203
263,559
Banks
6,376,094
6,006,457
6,415,212
6,028,477
Financial Assets Available for Sale
47,009,342
45,677,129
47,009,342
45,677,129
Investments Held to Maturity
4,497,417
1,391,860
4,414,342
1,396,454
Loans
(1)
195,889,105
169,761,297
194,258,612
170,879,470
Financial Liabilities
Banks Deposits
7,922,035
6,689,292
7,905,760
6,683,411
Other Deposits
146,279,255
127,811,934
146,452,688
127,854,930
Funds Provided from Other Financial Institutions
45,614,370
34,176,072
45,213,483
33,961,600
Marketable Securities Issued
28,126,691
(2)
21,865,876
(3)
28,010,826
22,370,535
Miscellaneous Payables
17,872,300
14,434,581
17,872,300
14,434,581
(1)
Includes factoring amounts.
(2)
Secondary subordinated issued bonds having credit quality, which are classified on the balance sheet under the subordinated loans, amounting to TL 4,047,133 are also included.
(3)
Secondary subordinated issued bonds having credit quality, which are classified on the balance sheet under the subordinated loans, amounting to TL 3,268,784 are also included.
Fair values of investments held to maturity and the marketable securities issued are determined by using the market prices; in cases where market prices cannot be measured, quoted
market prices of other securities that are subject to amortization having similar interest, maturity and other conditions are taken as the basis for the fair value determination.
Market prices are taken into account in determining the fair values of the securities available for sale. When the prices cannot be measured in an active market, fair values are not
deemed to be reliably determined and amortized cost, calculated by the internal rate of return method, are taken into account as the fair values.
Fair values of banks, loans granted, deposits and funds borrowed from other financial institutions are calculated by discounting the amounts in each maturity bracket formed
according to repricing periods, using the rate corresponding to relevant maturity bracket in the discount curves based on current market conditions.
2. Information on fair value measurements recognized in the financial statements
TFRS 13 “Fair Value Measurement” requires the items, which are recognized in the balance sheet at their fair values to be shown in the notes by being classified within a range.
According to this, the related financial instruments are classified into three levels in such a way that they will express the significance of the data used in fair value measurements. At
the first level, there are financial instruments, whose fair values are determined according to quoted prices in active markets for identical assets or liabilities, at the second level, there
are financial instruments, whose fair values are determined by directly or indirectly observable market data, and at the third level, there are financial instruments, whose fair values
are determined by the data, which are not based on observable market data. The financial assets, which are recognized in the consolidated financial statements at their fair values, are
shown below as classified according to the aforementioned principles of ranking.
Current Period
Level 1
Level 2
Level 3
Financial Assets at Fair Value Through Profit and Loss
Debt Securities
660,448
40,527
36,290
Equity Securities
79,488
Derivative Financial Assets Held for Trading
1,451,999
Other
1,670
233,027
Financial Assets Available-for-Sale
Debt Securities
32,515,632
10,087,978
3,778,269
Equity Securities
(1)
28,764
10,120
255,353
Other
278,303
Investments in Subsidiaries and Associates
(2)
3,942,544
Derivative Financial Liabilities
1,206,148
(1)
Since they are not traded in an active market, the equity securities (TL 54,923) under the financial assets available-for-sale are shown in the financial statements at acquisition cost and the related securities are not
shown in this table.
(2)
Since unlisted investments in associates and subsidiaries are recognized at acquisition cost within the framework of TAS 27, these companies are not included in table.
Prior Period
Level 1
Level 2
Level 3
Financial Assets at Fair Value Through Profit and Loss
Debt Securities
771,699
29,205
1,072
Equity Securities
69,843
Derivative Financial Assets Held for Trading
1,081,071
Other
9,637
297,643
Financial Assets Available-for-Sale
Debt Securities
36,965,085
7,625,254
744,601
Equity Securities
(1)
36,614
Other
241,624
Investments in Subsidiaries and Associates
(2)
4,032,090
Derivative Financial Liabilities
749,841
(1)
Since they are not traded in an active market, the equity securities (TL 63,951) under the financial assets available-for-sale are shown in the financial statements at acquisition cost and the related securities are not
shown in this table.
(2)
Since the unlisted investments in associates and subsidiaries are recognized at acquisition cost within the framework of TAS 27, these companies are not included in the table.
