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İş Bankası
Annual Report 2013
Financial Information and Risk Management
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2013
TFRS 3 “Business Combinations” standard prescribes no depreciation to be recognized for goodwill arising on the acquisitions on or
after 31 March 2004, realizing positive goodwill as an asset and application of impairment analysis as of balance sheet dates. In the
same standard, it is also required from that date onwards that the negative goodwill, which occurs in the case of the Group’s interest
in the fair value of acquired identifiable assets and liabilities exceeds the acquisition cost to be recognized in profit or loss.
Details of positive goodwill arising from Group’s investments to its subsidiaries in investment basis are as follows:
Name of the Investment
Amount of the Positive Consolidation Goodwill
İş Finansal Kiralama A.Ş.
611
Türkiye Sınai Kalkınma Bankası A.Ş.
4,792
Anadolu Anonim Türk Sigorta Şirketi
1,767
CJSC İşbank
28,804
Total
35,974
Due to the Bank does not have any associates and subsidiaries, the special purpose entities established within the Bank’s
securitization loan transactions are included to the financial statements
b.
Basis of consolidation of associates:
An associate is a domestic or foreign entity which the Parent Bank participates in its capital and over which it has a significant
influence but no control.
Significant influence is the power to participate in the financial and operating policy of the investee. If the Parent Bank holds
qualified shares in the associate, it is presumed that the Parent Bank has significant influence unless otherwise demonstrated.
A substantial or majority ownership by another investor does not necessarily preclude the Parent Bank from having significant
influence.
Qualified share is the share that directly or indirectly constitutes ten or more than ten percent of an entity’s capital or voting rights
and irrespective of this requirement, possession of privileged shares giving right to appoint members of board of directors.
Equity accounting method is an evaluation method of associates by which the Parent Bank’s share in the associates’ equity is
compared with the book value of the associate accounted in the Parent Bank’s balance sheet. The difference is recognized in profit or
loss in the consolidated income statement.
Accounting policies of Arap-Türk Bankası A.Ş., the only associate that is included in the consolidated financial statements by using
the equity accounting method are not different than the Parent Bank’s.
c.
Basis of consolidation of joint ventures:
The Parent Bank does not have any joint ventures to be consolidated.
d.
Principles applied during share transfer, merger and acquisition: None.
2. Presentation of unconsolidated subsidiaries, associates and equity securities included in the available-for-sale portfolio in
consolidated financial statements:
Equity securities recognized as subsidiaries, associates and financial assets available for sale are accounted in accordance with TAS
39 “Turkish Accounting Standard for Financial Instruments: Recognition and Measurement” in the consolidated financial statements.
Subsidiaries, whose shares are traded in an active market (stock market), are shown in the financial statements with their fair values
by taking into account their prices recorded in the related market (stock market). Subsidiaries and associates whose shares are
not traded in an active market (stock market), are followed at their cost of acquisition and these assets are shown in the financial
statements with their cost values after the deduction of, impairment losses, if any.
IV. Forward, Options and Other Derivative Transactions
Derivative transactions of the Group consist of foreign currency and interest rate swaps, forwards, foreign currency options and
interest rate options. The Group has no derivative instruments decomposed from the main contract.
