MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 152 Millî Reasürans Türk Anonim Şirketi NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2019 (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) Valuation of financial assets As of December 31, 2019 and 2018 detailed change of fair value of marketable securities, debt securities and subsidiaries classified as available for sale financial assets is as following: December 31, 2019 December 31, 2018 Fair value reserves at the beginning of the period (38.392.931) 52.911.798 Change in the fair value during the period (Note 4.2) 144.451.080 (79.511.110) Deferred tax effect (Note 4.2) (5.099.087) 4.183.047 Net gains transferred to the statement of income (Note 4.2) (1.902.905) (20.482.905) Deferred tax effect (Note 4.2) 418.639 4.506.239 Fair value reserves at the end of the period 99.474.796 (38.392.931) Profit for the period that is extraneous from the distribution In accordance with tax legislation, 75% of profits from sales of participation shares and 50% of profit from real states included in the assets of companies is exempt from corporate tax provided that it is classified under a special fund for full five years. The exempt gains cannot be transferred to another account other than a capital increase or cannot be withdrawn from the entity for five years. In the direction of sector announcement made by Treasury dated October 27, 2008 and numbered 2008/41, the Company classified the gain on sale dated April 10, 2015 from the land in real estate amounting to TL 23.723.323 as of December 31, 2016. As of December 31, 2019, profit for the period that is extraneous from the distribution that are accounted according to the equity method amounting to TL 522.188 (December 31, 2018: TL 522.188.). As of 31 December 2019, Non-Distributable Profit amount recognized according to the equity method is TL 3.129.194. (31 December 2018: None.) 16 Other reserves and equity component of discretionary participation As of December 31, 2019 and 2018, other reserves are explained in detail in Note 15 - Equity above. As of December 31, 2019 and 2018, the Company does not hold any insurance or investment contracts which contain a discretionary participation feature.