Other investments, non-current
Loans and receivables
Loans and receivables are carried at amortised cost, less impairment losses, if applicable.
Financial assets at fair value through profit or loss
The investments in SAF Ggi A.S. and TIM Trakya Is Merkezi Yatirim ve Ticaret A.S. are regarded as a financial asset which is carried at fair value, with gains and losses recognised in the profit and loss account. Financial instruments are treated as carried at fair value, with gains and losses recognised in the profit and loss account if the Group manages the investments and takes buying and selling decisions based on the fair value. On initial recognition, attributable transaction costs are expensed as and when incurred.
Derivative financial instruments
The sole purpose of the derivative financial instruments contracted by the Group is to cover exchange rate and interest rate risks arising from operating, financing and investing activities. The Group does not hold any derivatives for trading purposes. Derivatives that do not qualify for hedge accounting are, however, accounted for as trading instruments. On initial recognition, derivative financial instruments are carried at cost, with subsequent recognition at fair value. The fair value of interest rate and currency swaps is the estimated amount that would be received or paid by the Group to end the swap at balance sheet date, taking the current interest rate into account. Where derivative financial instruments are designated as hedging transactions, recognition of any gain or loss arising from the change in the fair value depends on the accounting method method for the hedged item.
Source: Annual Report 2008, Chapter Financial Statements, page 156 (PDF, 179 kB)
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