Obligations related to employee rights are accounted in accordance with Communiqué 10 on the Accounting Application Regulation (“AAR 10”) “Accounting of Obligations Related to Employee Rights”.
Provision for notice pay and employment termination benefit liability is calculated by taking the simple arithmetical average of the ratio of the actual payment to the total liability for the last five years before the balance sheet date and applying this ratio to the total liability of the current period in accordance with “ARR 10”. Five-year simple arithmetical average of actual payment rates as a basis for provision for employee termination benefits and notice pay is 11.23%.
(31 December 2003: 10.45%)
The Bank does not employ any person subject to an agreement where the employment period will terminate in more than 12 months as at 31 March 2004.
The Bank’s personnel are members of the “Akbank T.A.Ş. Personnel Pension Fund Foundation” (“Pension Fund”), established in accordance with the Social Security Law, Article No. 20. The financial statements of the Pension Fund have been audited by an actuary in accordance with the 38th Article of the Insurance Supervisory Law and the Actuarian Regulation based on the same Article and depending on the audit report dated 15 February 2003, a provision has been calculated and accounted for the technical deficit in the financial statements of the Pension Fund as required by the principles of AAR10.
