MILLI REASURANS ANNUAL REPORT 2018

Millî Reasürans Türk Anonim Şirketi NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2018 (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) Deferred commission expenses The Group capitalizes commissions paid to the intermediaries related to policy production under short-term and long-term prepaid expenses. As of December 31, 2018, short-term prepaid expenses amounting to TL 500.778.298 (December 31, 2017: TL 422.238.492) consist of deferred acquisition cost; deferred commission expenses amounting to TL 461.641.048 (December 31, 2017: TL 384.974.032) and other prepaid expenses amounting to TL 39.137.250 (December 31, 2017: TL 37.264.460). Long-term prepaid expenses amounting TL 9.445.638 (December 31, 2017: TL 6.639.202) are composed of other prepaid expenses. December 31, 2018 December 31, 2017 Deferred commission expenses at the beginning of the period 384.974.032 369.762.099 Commissions accrued during the period (Note 32) 914.371.048 805.870.258 Commissions expensed during the period (837.704.032) (790.658.325) Deferred commission expenses at the end of the period 461.641.048 384.974.032 Individual pension funds None. 18 Investment contract liabilities None. 19 Trade and other payables and deferred income December 31, 2018 December 31, 2017 Financial payables 53.578.314 110.802.339 Payables from main operations 700.067.699 518.869.894 Other payables 97.294.815 116.595.290 Short/long term deferred income and expense accruals 181.638.382 133.477.692 Taxes and other liabilities and similar obligations 57.436.673 59.324.763 Due to related parties (Note 45) 370.388 362.820 Total 1.090.386.271 939.432.798 Short-term liabilities 1.090.353.771 939.322.298 Long-term liabilities 32.500 110.500 Total 1.090.386.271 939.432.798 Millî Reasürans Annual Report 2018 234 / Consolidated Financial Statements and Independent Auditors’ Report