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Financial Information and Risk
Management
İş Bankası
Annual Report 2013
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Unconsolidated Financial Statements
for the Year Ended 31 December 2013
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.
XIX. Borrowings
The Bank resorts to obtaining funds from individuals and institutions residing domestically and abroad, as may be required, by way
of resorting to borrowing instruments such as 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.
XX. Equity Shares and Issuance of Equity Securities
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 Bank’s earnings per share calculations taking place in the income statement are as follows:
Current Period
Prior Period
Profit attributable to shareholders
3,163,365
3,310,307
Weighted average number of share certificates (‘000)
112,502,250
112,502,250
Earnings per share - in exact TL
0.028118238
0.029424363
XXI. 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.
XXII. Government Incentives
There are no government incentives utilized by the Bank, during the current or prior accounting periods.
XXIII. 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 Bank’s business segmentation and related information is explained in Section Four Note XV.
XXIV. Other Disclosures
To adapt to the financial statements 31 December 2013, reclassifications have been made on the off-balance sheet on 31 December
2012.
