2002 Annual Report - Turkish Airlines

2002 • 83TURKISH AIRLINES INC.NOTES TO THE FINANCIAL STATEMENTS / continued(all figures are restated to TL money values at December 31, 2002 pursuant to IAS 29)Temporary Differences: Deferred Tax Assets / (Liabilities)December 31, 2002 December 31, 2001TL 000,000 TL 000,000Allowance for Unrecoverable Bank Accounts 1,770,841 1,073,000Adjustment to Prepaid Expenses - (1,412,306)Provision for Doubtful Receivables 676,825 1,242,907Restatement of Inventory (3,680,799) (89,432)Accounting for Short-Term Lease Liability 73,105,663 59,009,599Provision for Advance Ticket Sales (13,837,502) 13,421,796Accrued Liabilities 10,580,947 (9,133,216)Restatement of Fixed Assets (703,154,298) (528,224,577)Accounting for Long-Term Lease Liability 554,418,565 421,425,723Adjustment to Long-Term Assets (2,300,453) (5,692,682)Provision for Retirement Pay 25,318,178 13,378,758Adjustment to Manufacturers’ Credit 2,323,942 2,077,976Income Arising From Cancellation of A Type Handling License (6,006,999) -Deferred Income 2,930,739 -Discount on Receivables 355,526 223,005Discount on Payables (572,895) -Diminishing in Value of Marketable Securities and Financial Assets 2,524,503 -Interest Accrual on Bank Accounts - (31,463)Carry Forward Loss - 1,207,246Deferred Tax Asset / (Liability) (55,547,217) (31,523,666)Movement in Deferred Tax Asset per balance sheet can be reconciled with Net Deferred Tax Benefit per Income Statement as follows:December 31, 2002 December 31, 2001TL 000,000 TL 000,000Deferred Tax Income / (Expense)Related to the Origination and Reversal of Temporary Differences (45,564,629) (7,836,726)Deferred Tax Income / (Expense)Resulting from Increase in Effective Tax Rate (3,993,035) -Net Deferred Tax Benefit / (Expense) (49,557,664) (7,836,726)Deferred Tax Liability Related toRevaluation of Aircraft 23,686,940 (23,686,940)Monetary Gain / (Loss) on Deferred Tax Asset / (Liabilities) 1,847,173 -Change in Net Deferred Tax (24,023,551) (31,523,666)