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Finansal Kiralama, Faktoring ve Finansman Şirketleri Birliği ve Bağlı Ortaklıkları
Notes to the consolidated financial statements
as of December 31, 2016
(All amounts expressed in Turkish Lira (“TL”))
Annual Improvements to TFRSs - 2012-2014 Cycle
POA issued, Annual Improvements to TFRSs 2012-2014 Cycle. The document sets out five amendments to four standards, excluding
those standards that are consequentially amended, and the related Basis for Conclusions. The standards affected and the subjects of
the amendments are:
- IFRS 5 Non-current Assets Held for Sale and Discontinued Operations – clarifies that changes in methods of disposal (through sale
or distribution to owners) would not be considered a new plan of disposal, rather it is a continuation of the original plan
- IFRS 7 Financial Instruments: Disclosures – clarifies that i) the assessment of servicing contracts that includes a fee for the
continuing involvement of financial assets in accordance with IFRS 7; ii) the offsetting disclosure requirements do not apply to
condensed interim financial statements, unless such disclosures provide a significant update to the information reported in the most
recent annual report
- IAS 19 Employee Benefits – clarifies that market depth of high quality corporate bonds is assessed based on the currency in which
the obligation is denominated, rather than the country where the obligation is located
- IAS 34 Interim Financial Reporting –clarifies that the required interim disclosures must either be in the interim financial statements
or incorporated by cross-reference between the interim financial statements and wherever they are included within the interim
financial report
The amendment did not have any impact on the financial position or performance of the Group
ii) Standards issued but not yet effective and not early adopted
Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of
the consolidated financial statements are as follows. The Group will make the necessary changes if not indicated otherwise, which will
be affecting the consolidated financial statements and disclosures, when the new standards and interpretations become effective.
TFRS 15 Revenue from Contracts with Customers
In September 2016, POA issued TFRS 15 Revenue from Contracts with Customers. The new standard issued includes the clarifying
amendments to IFRS 15 made by IASB in April 2016. The new five-step model in the standard provides the recognition and
measurement requirements of revenue. The standard applies to revenue from contracts with customers and provides a model for
the sale of some non-financial assets that are not an output of the entity’s ordinary activities (e.g., the sale of property, plant and
equipment or intangibles). TFRS 15 effective date is January 1, 2018, with early adoption permitted. Entities will transition to the new
standard following either a full retrospective approach or a modified retrospective approach. The modified retrospective approach
would allow the standard to be applied beginning with the current period, with no restatement of the comparative periods, but
additional disclosures are required. The Group does not expect that the standard will have significant impact on the financial position
or performance of the Group.
TFRS 9 Financial Instruments
In January 2016, POA issued the final version of TFRS 9 Financial Instruments. The final version of TFRS 9 brings together all three
aspects of the accounting for financial instruments project: classification and measurement, impairment and hedge accounting. TFRS
9 is built on a logical, single classification and measurement approach for financial assets that reflects the business model in which
they are managed and their cash flow characteristics. Built upon this is a forward-looking expected credit loss model that will result
in more timely recognition of loan losses and is a single model that is applicable to all financial instruments subject to impairment
accounting. In addition, TFRS 9 addresses the so-called ‘own credit’ issue, whereby banks and others book gains through profit or
loss as a result of the value of their own debt falling due to a decrease in credit worthiness when they have elected to measure that
debt at fair value. The Standard also includes an improved hedge accounting model to better link the economics of risk management
with its accounting treatment. TFRS 9 is effective for annual periods beginning on or after January 1 -2018, with early application
permitted by applying all requirements of the standard. Alternatively, entities may elect to early apply only the requirements for the
presentation of gains and losses on financial liabilities designated as FVTPL without applying the other requirements in the standard.
The Group is in the process of assessing the impact of the standard on financial position or performance of the Group.
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Annual Report 2016
The Association of Financial Institutions