90 / 104
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”))
c) Tangible assets
Tangible assets are carried at cost value excluding accumulated depreciation and impairment. Depreciation on the tangible assets is
provided on straight-line method according to their useful lives from the date of recognition or assembly of the related asset. The
estimated useful lives of assets are as follows:
Years
Furnitures and fixtures
3-10
Leasehold improvements
4-5
Disposal of tangible fixed assets or asset gain or loss arising on the difference between the sales proceeds and the carrying amount
of the asset is included in the income statement. Further expenses are capitalised only if the expenses increase the future economic
benefits. All other expenses are recognized in the comprehensive income report as expenses.
d) Intangible Assets
Amortization is charged on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method
are reviewed at the end of each annual reporting period, with the effect of any changes in estimate being accounted for on a
prospective basis.
Years
Rights
3-10
(e) Employee benefits
Employment termination benefits
In accordance with existing social legislation lump-sum termination indemnities are paid to each employee whose employment is
terminated due to the retirement or dismissal. In the context of TAS 19 Employee benefits (“TAS 19”) mentioned type of payments are
specified as defined retirement benefit plans.
The reserve has been calculated by estimating the present value of the future obligation of the Company that may arise from the
retirement of the employees.
The liability is not funded as there is no funding requirement.
The Group accounts for employee termination benefits, vacation rights and other benefits to employees in accordance with
“International Accounting Standard for Employee Rights” (“TAS 19”) and IAS 19 requires actuarial valuation methods to be developed
to estimate the enterprise’s obligation under defined benefit plans.
The discount rate for pension commitments consistent with the maturity period and will be used for the payment of commitments
is estimated liabilities denominated in currencies, according to the changing discount rate has been used over the years by according
to calculation as of December 31, 2016. In line with a discount rate estimation was adopted to estimate long-term inflation rate, the
changing inflation rate has been used over the years.
The estimated rate of severance indemnity amounts that have not been paid as a result of on-demand departures and that have
remained in the company are also taken into consideration. It is assumed that, the rate of optional separation will be subject to
past service period and to assume by calculating total retirement benefit obligation with making the analysis of past experience,
expectations are reflected in the calculation of expected future demand separation.
Accordingly, in actuarial calculations the possibility of employees leave voluntarily is included in the calculation as decreasing rate
while having increased past service period.
88
Annual Report 2016
The Association of Financial Institutions