5 - TPAO

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54 Basis Of Presentation For The Financial Statements 1.1 Statutory Books & Financial Statements The consolidated financial statements of TPAO and the Group have been prepared in accordance with International Financial Reporting Standards (IFRS). The company, which is incorporated in Turkey, maintains its books of accounts and prepares its statutory financial statements in accordance with the Turkish Commercial Code and Tax Legislation and the Uniform Chart of Accounts issued by the Ministry of Finance. The foreign subsidiaries and associates maintain their books of accounts in their local currency according to current commercial / fiscal legislation, project agreements, attachments and in compliance with the standards taken up as references. The financial statements have been prepared from statutory financial statements of the Company and its subsidiaries and associated with adjustments and reclassifications for the purpose of fair presentation in accordance with IFRS. Until the difference between the International Accounting Standards (IAS)/ International Financial Reporting Standards (IFRS) recognized by the European Union and the standards published by the International Accounting Standards Board (IASB) are announced by the Turkish Accounting Standards Board (TMSK), the financial statements are prepared in line with IAS/ IFRS under the Capital Markets Board (SPK) Communiqué Serial: XI, no: 29. The annexed financial statements and footnotes are presented according to the format required to be implemented by the SPK. Functional currency used in company’s operations is Turkish Lira (TL), and functional currency used in reporting is United States Dollars (USD). Financial statements and notes in the appendix are presented in United States Dollars (USD). 1.2 Adjustment of Financial Statements In Hyperinflation Periods Under the SPK decision dated March 17, 2005, and numbered 11/367, the inflation accounting practice is ended as of January 1, 2005, for the companies operating in Turkey and preparing financial statements in line with Subsidiaries and Affiliated Companies and Their Shareholding Percentages Affiliates and Subsidiaries KTM Effective Rate of Ownership (%) 49 Method Equity Method TPIC TPBTC TPSCP TPOC AIOC (6.75% partner of ACG Project) TP MISSAN TP BADRA 100 100 100 100 100 100 100 Full Consolidation Full Consolidation Full Consolidation Full Consolidation Full Consolidation Full Consolidation Full Consolidation
the Accounting Standards (including those which adapt the IAS/IFRS application). In line with this decision, the Standard on “Financial Reporting in Hyperinflationary Economies” (“IAS/TMS 29”) released by the IASB was not applied as of January 1, 2005. 1.3 Comparison of the Previous Period Financial Statements Comparison information was classified for the purposes of conformation with the presentation of the current period financial statements if necessary. 1.4 Basis of Consolidation Consolidated financial statements comprising TPAO (“Company”, “Parent Company”) and the partnership controlled by TPAO, have been prepared by considering the financial statements belonging to the year ending on 31, December 2011. The subsidiaries are defined as the companies controlled by the Parent Company holding more than 50% of the shares and voting rights directly or indirectly within the scope of capital and managerial relations or having the right of electing the majority of the management or having the majority of the management over the subsidiaries. The power of control implies that Parent Company plays the efficient role over the decisions of the company (Subsidiary) regarding the financial and operational politics and the power of managing aforementioned politics for the purpose of benefiting from the operations of the pre-mentioned company. The companies those do not have supervision capability but whose 10%-50% of the shares controlled by the parent company are defined as Partnership. The subsidiaries and affiliated companies and their shareholding percentages at 31 December 2011 are on the left page. The company’s shareholding percentage in KTM is shown in the financial statements by using equity method. The equity and net income attributable to minority shareholders’ interests are shown separately in the balance sheet and income statement, respectively. The losses applicable to the minority are charged against the minority interest, so as not to exceed the minority interest in the equity of subsidiary. As the investment in KTM is classified as an associated company, it is accounted for on equity basis. Participating interest acquired in KTM is accounted for by the equity method. The equity method is a method of accounting whereby an equity investment is initially recorded at cost and subsequently adjusted to reflect the investor’s share of the net profit or loss of the associate (investee). Distributions received from the investee reduce the carrying amount of the investment. The recoverable amount of an investment in an associate is assessed and if there is an indication that the carrying amount of the associate may be impaired permanently adjustment is made to state it at its recoverable amount. The book value of the investment in the capital of subsidiaries held by the parent company has been off-set against the equity of the invested companies and all inter-company purchase and sales and all accounts receivable and payable balances have been eliminated. 1.5 Changes in Accounting Policies If the changes in accounting estimates are about only one term, they are applied in the current period when the change was made, if they are about future terms, they are applied both in the period the changes were made and in the future periods, prospectively. There have been no significant changes in the accounting estimates of the Group in the current period. Summary of Significant Accounting Policies 2.1 Revenue The group’s income consists of crude oil and natural gas sales and the revenues of various 55
Page 3: 1 Natural resources have great impo
Page 6 and 7: contents 4 6 8 10 12 14 16 20 26 32
Page 8 and 9: about us 6 who we are? what we do?
Page 10 and 11: organization chart 8 Chairman and P
Page 12 and 13: message from the president 10 We ar
Page 14 and 15: oard of directors 12 5 He graduated
Page 16 and 17: general management 14 Mehmet UYSAL
Page 18 and 19: indicators of 2011 2011 2010 16 Sal
Page 20: 18 World population spent 28% more
Page 23 and 24: In accordance with our vision and m
Page 25 and 26: • TPAO and Shell signed Joint Ope
Page 27 and 28: 25 Garzan Water Injection Project G
Page 29 and 30: We have become an important actor i
Page 31 and 32: Following the determination of the
Page 33 and 34: The first draft of the Preliminary
Page 35 and 36: Today, oil companies are faced with
Page 37 and 38: Drilling Services While conducting
Page 39 and 40: In this context, a total of 29 proj
Page 41 and 42: technology, by not harming the envi
Page 43 and 44: In this context, TPAO continuously
Page 45 and 46: Batman District Management In Batma
Page 47 and 48: Colombia Activities Gonzalez Block
Page 49 and 50: 47 Turkish Petroleum SCP Ltd. (TPSC
Page 52 and 53: finance 50 600 Our domestic budget
Page 58 and 59: services. The income generated by s
Page 60 and 61: 58 The Group does not have a goodwi
Page 62 and 63: 60 gains and losses in accordance w
Page 64 and 65: 62 increased for the change in thei
Page 66 and 67: TPAO and its Subsidiaries Consolida
Page 68 and 69: TPAO and its Subsidiaries Consolida
Page 70: contact information 68 headquarters

5 - TPAO

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