INTRODUCTION
ACTIVITIES
CORPORATE GOVERNANCE
FINANCIAL INFORMATION AND RISK MANAGEMENT
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements for the Year Ended
31 December 2012
213
İŞBANK
ANNUAL REPORT 2012
Reverse repo transactions are recognized under the “Receivables from Reverse Repurchase Transactions” account. For the difference
between the purchase and resale prices determined by the reverse Repurchase agreements for the period; income accrual is calculated
using the internal rate of return method.
XI. Non-current Assets Held for Sale and Discontinued Operations and Related Liabilities
Assets that meet the criteria to be classified as held for sale are measured at the lower of its carrying amount and fair value less costs to sell
and presented in the financial statements separately. In order to classify a tangible fixed asset as held for sale, the asset (or the disposal
group) should be available for an immediate sale in its present condition subject to the terms of any regular sales of such assets (or such
disposal groups) and the sale should be highly probable. For a highly probable sale, the appropriate level of management must be committed
to a plan to sell the asset (or the disposal group), and an active programme to complete the plan should be initiated to locate a customer.
Also, the asset (or the disposal group) should have an active market sale value, which is a reasonable value in relation to its current fair value.
Events or circumstances may extend the completion of the sale more than one year. Such assets are still classified as held for sale if there is
sufficient evidence that the delay in the sale process is due to the events and circumstances occurred beyond the control of the entity or the
entity remains committed to its plan to sell the asset (or disposal group).
A discontinued operation is a component of a bank that either has been disposed of, or is classified as held for sale. Gains or losses relating
to discontinued operations are presented separately in the income statement.
XII. Goodwill and Other Intangible Assets
The Group’s intangible assets consist of consolidation goodwill, software programs and rights.
Goodwill arising from the acquisition of a subsidiary or joint venture represents the excess of cost of acquisition over the fair value of Group’s
share of the identifiable assets, liabilities, or contingent liabilities of the acquired subsidiary or joint venture at the date of acquisition of
the control. Goodwill is recognized as an asset at cost and then carried at cost less accumulated impairment losses. In impairment-loss
test, goodwill is allocated between the Group’s every cash-generating unit that is expected to benefit from the synergies of the business
combination. To control whether there is an impairment loss in the cash-generating units that goodwill is allocated, impairment- loss test
is applied every year or more often if there is indications of impairment loss. In the cases, recoverable amount of cash-generating unit is
smaller than its book value; impairment loss is firstly used in reduction of book value of the cash-generating unit, and then the other assets
proportionally. Goodwill which is allocated for the impairment losses could not be reversed. When a subsidiary or joint venture is to be sold,
related goodwill amount is combined with the profit/loss relating to this disposal. Positive goodwill arising from the Group’s investments in
its subsidiaries is recognized in Intangible Assets. Explanations on consolidation goodwill are given in note III.1.a. in Section Three.
As for other intangible assets, the purchased items are presented with their acquisition costs less the accumulated amortization and
impairment provisions. In case there is an indication of impairment, the recoverable amount of the related intangible asset is estimated
within the framework of TAS 36 “Impairment of Assets” and impairment provision is set aside in case the recoverable amount is below its
acquisition cost.
Such assets are amortized by the straight-line method in a period between 1-15 years considering their useful life. The amortization method
and period are periodically reviewed at the end of each year.
XIII. Tangible Assets
Tangible assets purchased before 1 January 2005, are presented in the financial statements at their inflation adjusted acquisition costs as
at 31 December 2004, and the items purchased in the subsequent periods are presented at acquisition costs less accumulated amortization
and impairment provisions. In case there is an indication of impairment, the recoverable amount of the related intangible asset is estimated
within the framework of TAS 36 “Impairment of Assets” and impairment provision is set aside in case the recoverable amount is below its
acquisition cost.
Assets under construction for leasing or for administrative purposes or for other objectives, which are not presently determined, are
amortized when they are ready for use.
The acquisition costs of tangible assets other than the land and construction in progress are amortized by the straight-line method,
according to their estimated useful lives. The estimated useful life, residual amount and the method of amortization are reviewed every
year for the possible effects of the changes that occur in the estimates and if there is any change in the estimates, they are recognized
prospectively.
Assets acquired through finance lease are amortized at the estimated useful life or the leasing period, whichever is shorter.
Costs of operational lease development are amortized at equal amounts considering the period of benefit. Yet, in any case, the period
of benefit cannot exceed the period of lease. In case the period of lease is indefinite or longer than 5 years, the amortization period is
considered to be 5 years.
The difference between the sales proceeds arising from the disposal of tangible assets or the inactivation of a tangible asset and the book
value of the tangible asset are recognized in the income statement.
1...,205,206,207,208,209,210,211,212,213,214 216,217,218,219,220,221,222,223,224,225,...300