253
Financial Information and Risk
Management
İş Bankası
Annual Report 2013
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated 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
140,375
81,675
140,375
81,675
Banks
5,186,011
4,551,893
5,205,191
4,561,539
Financial Assets Available for Sale
34,275,403 32,173,825 34,275,403 32,173,825
Investments Held to Maturity
7,727,935 11,048,779
7,728,447 11,838,343
Loans
(1)
146,682,382 116,233,423 146,938,914 118,594,871
Financial Liabilities
Banks Deposits
4,192,301
3,211,812
4,190,844
3,212,239
Other Deposits
117,645,497 102,799,048 117,626,195 102,768,626
Funds Provided from Other Financial Institutions
27,330,455
19,161,912 27,084,100 19,164,808
Marketable Securities Issued
(2)
13,060,987
8,280,814 12,817,699 8,480,954
Miscellaneous Payables
11,156,094
9,194,223 11,156,094
9,194,223
(1)
Includes factoring amounts.
(2)
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 and the marketable securities issued are 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 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” 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 consolidated financial statements at their fair 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
1,357,391
12,298
57,228
Equity Securities
55,273
Derivative Financial Assets Held for Trading
1,288,834
Other
12,832
152,169
Financial Assets Available-for-Sale
Debt Securities
23,280,621
6,457,145
4,088,062
Equity Securities
(1)
20,889
Other
132,969
219,824
Investments in Subsidiaries and Associates
(2)
2,758,589
Derivative Financial Liabilities
1,197,345
(1)
Since they are not traded in an active market, the equity securities (TL 75,893) 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 unlisted investments in associates and subsidiaries are recognized at acquisition cost within the framework of TAS 39, these companies are not included in table.
