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İş Bankası
Annual Report 2013
Financial Information and Risk Management
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Unconsolidated Financial Statements
for the Year Ended 31 December 2013
IX. Offsetting Financial Instruments
A financial asset and a financial liability shall be offset and the net amount shall be presented in the balance sheet only when a party
currently has a legally enforceable right to set off the recognized amounts or intends either to settle on a net basis or to realize the
asset and settle the liability simultaneously.
X. Sale and Repurchase Agreements and Securities Lending Transactions
Marketable securities subject to repurchase agreements are classified under “Available for Sale Financial Assets” or “Held to Maturity
Investments” in the Bank’s portfolio and they are valued according to the valuation principles of the related portfolios.
Funds obtained from the repurchase agreements are recognized under “Funds from Repurchase Transactions” account in liabilities.
For the difference between the sale and repurchase prices determined by the repo agreements for the period; expense accrual is
calculated using the internal rate of return method.
Reverse repo transactions are recognized under the “Receivables from Reverse Repo Transactions” account. For the difference
between the purchase and resale prices determined by the reverse repo agreements for the period; income accrual is calculated
using the internal rate of return method.
XI. Non-current Assets Held for Sale and Discontinued Operations and Related Liabilities
Assets that meet the criteria to be classified as held for sale are measured at the lower of its carrying amount and fair value less
costs to sell. Assets held for sale are not amortized or depreciated and presented in the financial statements separately. In order
to classify a tangible fixed asset as held for sale, the asset (or the disposal group) should be available for an immediate sale in its
present condition subject to the terms of any regular sales of such assets (or such disposal groups) and the sale should be highly
probable. For a highly probable sale, the appropriate level of management must be committed to a plan to sell the asset (or the
disposal group), and an active programme to complete the plan should be initiated to locate a customer. Also, the asset (or the
disposal group) should have an active market sale value, which is a reasonable value in relation to its current fair value. Events or
circumstances may extend the completion of the sale more than one year. Such assets are still classified as held for sale if there
is sufficient evidence that the delay in the sale process is due to the events and circumstances occurred beyond the control of the
entity or the entity remains committed to its plan to sell the asset (or disposal group).
A discontinued operation is a component of a bank that either has been disposed of, or is classified as held for sale. Gains or losses
relating to discontinued operations are presented separately in the income statement.
XII. Goodwill and Other Intangible Assets
As at the balance sheet date, there is no goodwill recorded in the unconsolidated balance sheet of the Bank.
The Bank’s intangible assets are composed of software programs. The purchased items are presented with their acquisition costs
less the accumulated amortization and impairment provisions. In case there is an indication of impairment, the recoverable amount
of the related intangible asset is estimated within the framework of “TAS 36 -Impairment of Assets” and impairment provision is set
aside in case the recoverable amount is below its acquisition cost.
The related assets are amortized by the straight-line method in 1-3 years. The amortization method and period are periodically
reviewed at the end of each year.
XIII. Tangible Assets
Tangible assets purchased before 1 January 2005, are presented in the financial statements at their inflation adjusted acquisition
costs as at 31 December 2004, and the items purchased in the subsequent periods are presented at acquisition costs less
accumulated amortization and impairment provisions. In case there is an indication of impairment, the recoverable amount of the
related intangible asset is estimated within the framework of “TAS 36 - Impairment of Assets” and impairment provision is set aside
in case the recoverable amount is below its acquisition cost.
Assets under construction for leasing or for administrative purposes or for other objectives, which are not presently determined, are
amortized when they are ready for use.
