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Notes to the consolidated financial statements
as of December 31, 2016
(All amounts expressed in Turkish Lira (“TL”))
Finansal Kiralama, Faktoring ve Finansman Şirketleri Birliği ve Bağlı Ortaklıkları
Annual Improvements to IFRSs - 2014-2016 Cycle
The IASB issued Annual Improvements to IFRS Standards 2014–2016 Cycle, amending the following standards:
• IFRS 1 First-time Adoption of International Financial Reporting Standards: This amendment deletes the short-term exemptions
about some IFRS 7 disclosures, IAS 19 transition provisions and IFRS 10 Investment Entities. These amendments are to be applied for
annual periods beginning on or after January 1 -2018.
• IFRS 12 Disclosure of Interests in Other Entities: This amendment clarifies that an entity is not required to disclose summarised
financial information for interests in subsidiaries, associates or joint ventures that is classified, or included in a disposal group
that is classified, as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. These
amendments are to be applied for annual periods beginning on or after January 1 -2017.
• IAS 28 Investments in Associates and Joint Ventures: This amendment clarifies that the election to measure an investment in an
associate or a joint venture held by, or indirectly through, a venture capital organisation or other qualifying entity at fair value
through profit or loss applying IFRS 9 Financial Instruments is available for each associate or joint venture, at the initial recognition
of the associate or joint venture. These amendments are to be applied for annual periods beginning on or after January 1 -2018.
Earlier application is permitted.
The amendments are not applicable for the Group and will not have an impact on the financial position or performance of the Group.
B. Summary of Significant Relevant Accounting Policies
The significant accounting policies followed in the preparation of these financial statements are summarized below:
(a) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, time deposits and demand deposits at banks.
(b) Financial instruments
Securities held for trading
A financial asset is classified as held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing in the
near term or if it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence
of a recent actual pattern of short-term profit-taking.
Fair value of these assets at the balance sheet date is determined by the weighted average market value.
Trading securities are initially recognized at cost and are subsequently re-measured at fair value based on quoted bid prices.
Profit and loss due to the changes in fair value of trading securities is included into “Other income and expenses” in the income
statement. Interest and other income from trading securities is also included into “Other income” in the income statement.
Trading securities are recorded and derecognized at the transaction date.
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The Association of Financial Institutions
Annual Report 2016