c. Accounting and evaluation policies adopted in the presentation of financial statements: The principle accounting policies and evaluation methods adopted in the presentation of financial statements are in accordance with the “AAR”. These policies and methods are explained in the notes II through XXI.
II. SUBSIDIARIES, ASSOCIATES AND SHARE CERTIFICATES INCLUDED IN THE AVAILABLE-FOR-SALE PORTFOLIO Turkish lira denominated investments and associates, subsidiaries and share certificates in the available-for-sale portfolio are adjusted for the effects of inflation to restate cash and cash equivalent contributions in terms of the measuring unit current at the balance sheet date.
Foreign currency denominated investments and associates, subsidiaries and share certificates in the available-for-sale portfolio are valued through the translation of the historical foreign currency amounts by using exchange rates prevailing at the balance sheet date.
When the inflation adjusted value of investments, associates and share certificates is higher than the net realizable value, the carrying amount is reduced to the net realizable or fair value taking into consideration whether the value decrease is temporary or permanent and the ratio of the value decrease.
