Financial - Turkish Airlines

(Convenience Translation of Report and Financial Statements Originally Issued in Turkish)TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIESNotes to the Audited Consolidated Financial StatementsFor the Year Ended 31 December 2012(All amounts are expressed in Turkish Lira (TL) unless otherwise stated.)Movement in change of diminution in value of inventories for the periods ended 31 December 2012 and 2011.1 January - 1 January -31 December 2012 31 December 2011Provision at the beginning of the period 17.555.587 14.368.647Foreign currency translation adjustment (987.960) 3.186.940Reversals 1.134.372 -Provision at the end of the period 17.701.999 17.555.58714. BIOLOGICAL ASSETSNone (31 December 2011: None).15. ASSETS FROM CONSTRUCTION CONTRACTS IN PROGRESSNone (31 December 2011: None).16. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHODThe joint ventures accounted for using the equity method are as follows:31 December 2012 31 December 2011Sun Ekspress 8.388.295 26.515.230Turkish DO&CO 60.907.106 60.594.468P&W T.T Uçak Bakım Merkezi 53.595.748 74.626.727TGS 64.547.149 72.672.672THY Opet 66.777.834 37.295.786Uçak Koltuk 4.166.036 50.000TCI 2.901.708 1.703.496Türkbine Teknik 7.373.945 8.182.875Goodrich 411.724 1.744.878Air Bosna (Note 2.1) - 11.574.460269.069.545 294.960.592Financial information for Sun Express as of 31 December 2012 and 31 December 2011 are as follows:31 December 2012 31 December 2011Total assets 647.916.867 714.361.841Total liabilities 631.140.277 661.331.381Shareholders’equity 16.776.590 53.030.460Group’s share in associate’sshareholders’ equity 8.388.295 26.515.23034 TÜRK HAVA YOLLARI ANNUAL REPORT 2012