5 - TPAO

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cost necessary to make the sale is deducted
from the estimated sales price in the ordinary
course of business.
IAS 2 Inventories Standard suggests the use
of real party cost method in the determination
of inventory costs, when possible, and the
use of first-in-first-out (FIFO) or the Average
method when the real cost cannot be
determined. The cost is determined with the
use of weighted moving average cost method
for first good and material, work in progress,
merchandise and other inventories.
2.3 Fixed Assets
2.3.1 Tangible Fixed Assets
The tangible fixed assets purchased before
January 1, 2005, were reflected with the
deduction of the accrued depreciation and
permanent value losses from the corrected
cost values and the tangible fixed assets
purchased after January 1, 2005, were
reflected with the deduction of accrued
depreciation and permanent value losses
from the cost values.The fixed assets that
have been expected to be used more than one
year, reported in first at cost of value. At the
following periods, they are appreciated with
cost of value. The cost value of the tangible
fixed asset consists of purchase price, import
taxes and non-refundable purchase taxes,
the expenses incurred to make the tangible
fixed asset ready to be used and the interest
expenses incurred during the investment
stage of the tangible fixed asset in question
of the credits used for the purchase of the
tangible fixed asset.
The company has been calculated the
depreciation by considering the useful life
that has been denoted at the Law of Tax
Procedures. The normal depreciation has
been accepted as depreciation method and
the depreciation expense has been calculated
as prorate depreciation.
The depreciation methods and rates that
have been used are shown on the left row.
At least in every end of the fiscal period, the
depreciation rates have to be controlled. On
the other hand, it has to be tested in case
there is any impairment at the fixed assets.
However, there has not been happened any
operation and there has not been any group
of assets.
2.3.2 Intangible Fixed Assets
Intangible Fixed Assets consist of special
costs, rights and other intangible fixed
assets. Mentioned intangible fixed assets are
amortized in accordance with their predicted
life-time.
2.4 Goodwill
In line with the Turkish Financial Reporting
Standards (TFRS) “Business Combinations”
as of January 1, 2005, the difference between
the acquired identifiable assets, liabilities
and contingent liabilities and the acquisition
amounts are recognized as goodwill. The
goodwill that emerges during the business
combination is not subject to depreciation,
instead, it is subjected to value depredation
test once a year or when the conditions point
to depredation more frequently.