12 Months Financial Report - Turkish Airlines

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞINOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 DECEMBER, 200941 OTHER ISSUES AFFECTING FINANCIAL STATEMENTS MATERIALLY ORNECESSARY TO MAKE FINANCIAL STATEMENTS SOUND, INTERPRETABLEAND UNDERSTANDABLEThe Board of Directors approved and authorized to issue the consolidated financial statements on 5 April2010.In compliance with Capital Markets Board (“CMB”) Communiqué Serial: XI No: 29, the Group restatedthe previous periods’ financial statements due to the changes in presentation and classification offinancial statement items in order to maintain comparability. The changes have no material impact on theshareholders’ equity and net profit / (loss) of the previous periods. The significant classifications are asfollows:In the balance sheet as of 31 December 2008, TL 4.761.176 in “Other Financial Liabilities” is theoffsetted amount for the “fair value of derivative instruments”, whereas it is presented separately in thebalance sheet as of 31 December 2009 as TL 39.599.159 in “Financial Assets” and TL 44.360.335 in“Other Financial Liabilities.‘Advances received for milage credit sales’ item, which was stated under ‘Other receivables andpayables’ and amounting to TL 45.587.172 in the balance sheet as of 31 December 2008, is nowclassified under ‘Other short term liabilities’.‘Special costs’ item, which was stated under ‘Intangible assets’ and amounting to net book value ofTL6.534.527 in the balance sheet as of 31 December 2008, is now classified under ‘Tangible assets’.The Group reconsidered the depreciation accounting method of its aircrafts, spare engines and simulators,which are subject to impairment while preparing the financial statements for the year ended at 31December 2009. In previous years, the Group made depreciation calculation over cost value impairmentaccording to paragraph of 63 th in the International Accounting Standard 36 "Impairment of Assets";after the recognition of impairment loss, the depreciation charge for the asset is adjusted in future periodsto allocate the asset’s revised charging amount, less its residual value, on a systematic basis over itsremaining useful life. The mentioned change does not lead to a change in balance sheet items, equity andnet profit for the year, however, led to a reclassification between “Depreciation expense for the year” and“Provision for impairment loss for the year”. Thus, 2008 financial statements were restated based onInternational Accounting Standard 8 “Changes and Inaccuracies in Accounting Policies and AccountingPredictions” (“IAS 8). Because of this change, “Depreciation expense” under “Cost of sales” itemdecreased by TL107.560.793 and “Real increase in provision for impairment in value of tangible assets”increased by the same amount80