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.)Fair values of financial assets and liabilities are determined as follows:• First level: Financial assets and liabilities, are valued with the stock exchange prices in the active market for theassets and liabilities same with each other.• Second level: Financial assets and liabilities are valued with input obtained while finding the stock exchange priceof the relevant asset or liability mentioned in the first level and the direct or indirect observation of price in themarket.• Third level: Financial assets and liabilities are valued by the input that does not reflect an actual data observed inthe market while finding the fair value of an asset or liability.Financial assets and liabilities, which are presented in their fair values, level reclassifications are as follows:Fair value level as of the reporting dateFinancial assets 31 December 2012 Level 1 TL Level 2 TL Level 3 TLFinancial assets at fair value 65.096.176 - 65.096.176 -through profit or lossDerivative instrumentsFinancial assets accounted for 9.765.473 - 9.765.473 -hedge accountingDerivative instrumentsTotal 74.861.649 - 74.861.649 -Financial liabilitiesFinancial assets at fair value 102.171.654 - 102.171.654 -through profit or lossDerivative instrumentsFinancial assets accounted for 59.464.968 - 59.464.968 -hedge accountingDerivative instrumentsTotal 161.636.622 - 161.636.622 -73