General information - Eureko Sigorta

EUREKO S‹GORTA A.fi.
Notes to the Financial Statements As at 31 December 2008
(Currency: New Turkish Lira (TRY))
2 Summary of significant accounting policies
2.1 Basis of preparation
2.1.1 Information about the principles and the special accounting policies used in the preparation of the financial
statements
The Company maintains its books of account and prepares its financial statements in accordance with the Turkish
Accounting Standards (“TAS”), Turkish Financial Reporting Standards (“TFRS”), and other accounting and financial reporting
principles, statements and guidance (collectively “the Reporting Standards”) as promulgated by the Turkish Treasury based
on Insurance Law.
As per the Temporary Article 1 of the “Circular Related to the Presentation of the Financial Statements” which has been
issued in the 18 April 2008 dated and 26851 numbered Official Gazette, it is stated that it will not be compulsory to
present comparative financial information of 2007 in the financial reports issued during 2008. Accordingly, the accompanying
financial statements and related disclosures and footnotes do not include comparative financial information.
Additional paragraph for convenience translation to English
The differences between accounting principles, as described in the preceding paragraphs, and the accounting principles
generally accepted in countries, in which the accompanying financial statements are to be distributed, and International
Financial Reporting Standards (“IFRS”), may have significant influence on the accompanying financial statements.
Accordingly, the accompanying financial statements are not intended to present the financial position and results of
operations in accordance with the accounting principles generally accepted in such countries and IFRS.
2.1.2 Other accounting policies appropriate for the understanding of the financial statements
Accounting in hyperinflationary countries
Financial statements of the Turkish entities have been restated for the changes in the general purchasing power of the
New Turkish Lira based on TAS 29 – Financial Reporting in Hyperinflationary Economies as at 31 December 2004. TAS
29 requires that financial statements prepared in the currency of a hyperinflationary economy be stated in terms of the
measuring unit current at the balance sheet date, and that corresponding figures for previous years be restated in the
same terms. One characteristic that necessitates the application of TAS 29 is a cumulative three-year inflation rate
approaching or exceeding 100%.
With respect to the 4 April 2005 dated and 19387 numbered declaration of the Turkish Treasury, the Company restated
its financial statements as at 31 December 2004 and prepared opening balances of the financial statements of 2005 in
accordance with the “Restatement of Financial Statements in Hyperinflationary Periods” of the Capital Markets Board
(“CMB”) Communiqué No: 25 of Series XI, “Communiqué on Accounting Standards in Capital Market” published in the
Official Gazette dated 15 January 2003 and numbered 25290. Inflation accounting is no longer applied starting from 1
January 2005, in accordance with the same declaration of the Turkish Treasury. Accordingly, as at 31 December 2008,
non-monetary assets and liabilities and items included in shareholders’ equity including paid-in capital recognized or
recorded before 1 January 2005 are measured as restated to 31 December 2004 in order to reflect inflation adjustments.
Non-monetary assets and liabilities and items included in shareholders’ equity including paid-in capital recognized or
recorded after 1 January 2005 are measured at their nominal costs or values.
2.1.3 Functional and presentation currency
The accompanying financial statements are presented in YTL, which is the Company’s functional currency.
2.1.4 Rounding level of the amounts presented in the financial statements
Financial information presented in YTL, has been rounded to the nearest YTL values.
2008 ANNUAL REPORT
47