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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
Russia
According to the Russian regulations, corporate gains are subject to 20% corporate tax. The corporate tax base is determined
on accrual basis and it is measured by adding the non-deductible expenses to the corporate income gained during the period.
Companies in Russia make quarterly tax returns and make provisional tax payment by offsetting the advance taxes paid during the
period. Final taxation period for corporate tax is one year and the corporate tax is paid until 28 March by considering the provisional
taxes paid during the year. The losses occurred in the previous taxation periods can be offset by the current period tax base, but
provided that it is limited to the period of the last 10 years.
United Arab Emirates
The companies operating in the free zones of Dubai are not subject to tax according to the country’s legislation.
4. Transfer Pricing:
Transfer pricing is regulated through Article 13 of Corporate Tax Law titled “Transfer Pricing through camouflage of earnings”.
Detailed information for the practice regarding the subject is found in the “General Communiqué Regarding Camouflage of Earnings
through Transfer Pricing”.
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.
XXII. Borrowings
The Parent Bank and its consolidated Group companies resort 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 bills, bonds. 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.
XXIII. Equity Shares and Issuance of Equity Shares
Share issuance related 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 Parent Bank’s earnings per share calculations taking place in the consolidated income statement are
as follows.
Current Period
Prior Period
Profit attributable to shareholders
3,235,921
3,412,022
Weighted average number of shares (thousands)
112,502,250
112,502,250
Earnings per share - (in full TL)
0.028763167
0.030328478
XXIV. 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.
XXV. Government Incentives
None.
