12 Months Financial Report - Turkish Airlines

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞINOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER, 20091 THE COMPANY’S ORGANIZATION AND OPERATIONSTürk Hava Yolları A.O. (“the Company” or “THY”) was incorporated in Turkey in 1933. The principalactivity of the Company is domestic and international air transportation of passengers and cargo. As of 31December 2009 and 31 December 2008, the shareholders and their respective shareholdings in theCompany are as follows:31 December 2009 31 December 2008Republic of Turkey Prime MinistryPrivatization Administration 49,12% 49,12%Other (publicly held) 50,88% 50,88%Total 100,00% 100,00%The total number of employees working for Türk Hava Yolları A.O. and its subsidiary (“the Group”) asof 31 December 2009 is 15.269. (31 December 2008:14.072). The average number of employees workingfor the Group as of 31 December 2009 and 2008 is 14.696 and 13.724, respectively.The Company is registered in İstanbul, Turkey and its head office address is as follows:Türk Hava Yolları A.O. Genel Yönetim Binası Atatürk Havalimanı, 34149 Yeşilköy İSTANBUL.Approval of Financial StatementsBoard of Directors has approved the financial statements as of 31 December 2009 and delegated authorityfor publishing it on 5 April 2010. General shareholders' meeting has the authority to modify the financialstatements.2 BASIS OF PRESENTATION OF FINANCIAL STATEMENTS2.1 Basis of PresentationBasis of Preparation for Financial Statements and Significant Accounting PoliciesThe company and its subsidiaries registered in Turkey maintain their books of account and prepare theirstatutory financial statements in accordance with accounting principles in the Turkish Commercial Codeand Tax Legislation. Subsidiaries that are registered in foreign countries maintain their books of accountand prepare their statutory statements in accordance with the prevailing accounting principles in theirregistered countriesThe Capital Markets Board (“CMB”) has established principles, procedures and basis on the preparationof financial reports by enterprises and the representation of the reports with Communiqué Series XI, No:29 “Communiqué on Capital Market Financial Reporting Standards”. This Communiqué is applicable forthe first interim financial statements to be prepared after 1 January 2008 and with this Communiqué, theCommuniqué Series XI, No: 29 “Communiqué on Capital Market Accounting Standards” has beenrepealed. In accordance with this Communiqué, the companies are supposed to prepare their financialstatements in accordance with the International Financial Reporting Standards (“IAS/IFRS”) accepted bythe European Union.6