MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 151 Activities and Major Developments Related to Activities Financial Status Risks and Assessment of the Governing Body Unconsolidated Financial Statements Together with Independent Auditors’ Report Thereon Consolidated Financial Statements Together with Independent Auditors’ Report Thereon General Information Financial Rights Provided to the Members of the Governing Body and Senior Executives Research & Development Activities Millî Reasürans Türk Anonim Şirketi NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2019 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) (Currency: Turkish Lira (TL)) Movement of other profit reserves is presented below: December 31, 2019 December 31, 2018 Other profit reserves at the beginning of the period 22.407.942 24.383.602 Actuarial gains/losses (684.257) (706.593) Accounted according to the equity method (57.358) (1.269.067) Other profit reserves at the end of the period 21.666.327 22.407.942 Statutory reserves After the allocation of first legal reserves and first dividend to shareholders, reserve for natural disasters and catastrophe might be allocated, if deemed necessary, based on the suggestion of the Board of Directors and decision of the General Assembly. As of December 31, 2019, there are no funds allocated in this manner (December 31, 2018: None). As of December 31, 2019, the statutory reverses that are accounted according to the equity method amounting to TL 37.967.890 (December 31, 2018: 23.673.660 TL). Foreign currency translation differences Foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. As of December 31, 2019, foreign currency translation loss amounting to TL 34.192.451 (December 31, 2018: TL 43.734.932 loss) stems from Singapore Branch whose functional currency is US Dollars. Other capital reserves “According to TAS 16 - “Property Plant and Equipment”, property, plant and equipment are initially recorded at cost and can be subsequently measured at their fair values. The Company has started to show based on the revaluation model by measuring over fair value as of the third quarter of 2015 by making changes in the use of the property which is measuring the cost model in the financial statements before. According to expertise reports, fair value of building for own use is calculated as TL 179.340.000 and revaluation differences amounted TL 162.300.435 is recognized in ‘Other Capital Reserves’ account under equity amounting to TL 146.070.394 with net tax effect in financial statements as of December 31, 2019 (December 31, 2018: TL 146.070.394). As of December 31, 2019, the other capital reverses that are accounted according to the equity method amounting to TL 19.744.587 (December 31, 2018: 17.679.452 TL)