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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
(f) Shareholding charges, entrance fee and interest income/expense
Shareholding charges and entrance fee
The entrance fee revenues consist of fees allocated to the budget by the companies for once and the amount is determined by the
Board of the Association.
The costs of participation shares consist of the fees for the sectoral costs in the budget and are determined by the Board of the
Association and approved by the General Assembly and Revenues are recorded according to giving the service, having the transfer of
risks and benefits associated with the service, determination of the amount of revenue reliably and economic benefits associated with
the transaction be taken over is probable to flow to the Group on an accrual basis over the fair value.
The entrance fees are reflected to income statement after the membership process is completed and the costs of participation shares
are reflected regarding the following service period.
Interest income and expense
Interest income and expenses are booked in the income statement in the period to which they relate on an accrual basis.
(g) Taxes on income
The Association has exemption from the corporate tax and the value-added tax (“VAT”) payers. However, the Group has obligation on stamp
duty for papers issued in relation to the Association’s transaction.
The commercial enterprises are subject to the corporate tax rate of 20% in Turkey. Corporate tax is applied on taxable corporate
income, which is calculated from the statutory accounting profit by adding back non-deductible expenses, and by deducting
dividends received from resident companies, other exempt income and investment incentives utilized.
The temporary taxes are calculated and accrued quarterly in Turkey.
Tax losses can be carried forward to offset against future taxable income for up to 5 years. Tax losses cannot be carried back to offset
profits from previous periods.
In Turkey, there is no procedure for a final and definite agreement on tax assessments. Corporations file their tax returns within the 25
th
of
the fourth month following the close of the financial year to which they relate. Tax returns and the related accounting records might be
changed within 5 years by the tax authorities.
(h) Foreign exchange transactions
Foreign currency valuations are recorded by calculation with the exchange rate of the period; foreign currency assets and liabilities
are valued with the buying exchange rate declared by the Central Bank of the Republic of Turkey of the balance sheet date. Income
and expenses resulting from translation of foreign currency items are included in the income statement for the period.
(i) Trade payables
Trade payables contain related goods and services billed or unbilled amounts, consist of debts having maturities of less than three
months.
(j) Subsequent Events
Subsequent events cover any events which arise between the date of approval of the financial statements and the balance sheet date,
even if they occurred after declaration of the net profit for the period or specific financial information is publicly disclosed.
The Group adjusts its financial statements if such subsequent events require an adjustment to the financial statements.
89
The Association of Financial Institutions
Annual Report 2016