151
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
XIII. 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
Banks
1,527,610
1,434,846
1,528,476
1,435,488
Financial Assets Available for Sale
28,347,830
26,346,903
28,347,830
26,346,903
Investments Held to Maturity
7,627,448
10,953,158
7,732,705
11,737,347
Loans
135,281,021
107,142,154
135,246,177
109,328,315
Financial Liabilities
Banks Deposits
3,979,410
3,045,951
3,978,557
3,047,971
Other Deposits
116,995,355
102,337,483
116,991,760
102,336,717
Funds Provided from Other Financial
Institutions
15,921,894
10,747,554
15,847,426
10,780,406
Marketable Securities Issued
(1)
13,079,569
8,168,567
12,834,095
8,368,707
Miscellaneous Payables
4,337,257
3,674,259
4,337,257
3,674,259
(1)
Secondary subordinated issued bonds having credit quality, which are classified on the balance sheet under the subordinated loans, are also included
Fair values of investments held to maturity securities issued is 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 and marketable securities 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 7 - Financial Instruments: Disclosures” standard 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 balance sheet at their 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
827,854
5,901
57,228
Equity Securities
2
Derivative Financial Assets Held for Trading
1,312,573
Other
Financial Assets Available-for-Sale
(1)
Debt Securities
18,989,827
5,190,812
4,095,104
Other
44,002
Investments in Subsidiaries and Associates
(2)
5,585,702
Derivative Financial Liabilities
981,522
(1)
Since they are not traded in an active market, the equity securities (TL 28,085) 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 39”, these companies are not included in
the table.
