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Acıbadem Sağlık Hizmetleri ve Ticaret
Anonim Şirketi and Its Subsidiaries
Convenience Translation into English of
Consolidated Financial Statements as at
and for the year ended
31 December 2012
With Independent Auditor‘s Report
Thereon
Akis Bağımsız Denetim ve Serbest Muhasebeci Mali
Müşavirlik Anonim Şirketi
18 February 2013 This report includes 2 pages of independent auditors‘
report and 76 pages of consolidated financial statements
together with their explanatory notes .
Independent Auditors’ Report
To the Board of Directors of
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi
We have audited the accompanying consolidated statements of financial position of Acıbadem
Sağlık Hizmetleri ve Ticaret Anonim Şirketi ( ―The Company‖) and its subsidiaries (―the
Group‖) at 31 December 2012 and the related consolidated statements of comprehensive
income, changes in equity, cash flows for the year then ended and significant accounting
policies with the notes to the consolidated financial statements.
Company Management’s Responsibility for the Consolidated Financial Statements
The Company management is responsible for the preparation and fair presentation of the
consolidated financial statements in accordance with the financial reporting standards of Capital
Market Board (―CMB‖). This responsibility includes: designing, implementing and maintaining
internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies, and making accounting estimates that are reasonable in the
circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on
our audit. We conducted our audit in accordance with the auditing standards promulgated by
CMB. Those standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the consolidated financial statements. The procedures selected depend on our
judgment, including the assessment of the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Group‘s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Group‘s internal
control. Our Independent Audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by the company, as well as
evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Opinion
In our opinion, the accompanying consolidated financial statements give a true and fair view of
the consolidated financial position of Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi
and its subsidiaries as at 31 December 2011 and the related consolidated statement of
comprehensive income, changes in equity and cash flows for the year then ended in accordance
with the financial reporting standards (please see Note 2) promulgated by CMB.
Additional paragraph for convenience translation to English
Accounting policies applied by the Group may differ from the accounting principles generally
accepted in countries other than Turkey in material aspects and the effects of such differences
have not been quantified in the accompanying consolidated financial statements. Accordingly,
the accompanying consolidated financial statements are not intended to present the financial
position and results of operations, and changes in cash flow of the Group in accordance with the
accounting principles generally accepted in such countries of the users of these financial
statements.
İstanbul, 18 February 2013
Akis Bağımsız Denetim ve Serbest
Muhasebeci Mali Müşavirlik A.Ş.
Serkan Ercin
Partner
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi
and Its Subsidiaries
Table of Contents
Independent Auditor‘s Report
Consolidated Statement of Financial Position
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Table of Contents PAGE
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 3
CONSOLIDATED STATEMENT OF CASH FLOWS 4
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 5-78
1 Organization and Nature of Business 5
2 Basis of presentation of the consolidated financial statements 17 3 Segment reporting 28 4 Cash and cash equivalents 29 5 Financial Liabilities 30 6 Trade receivables and payables 34 7 Other Receivables and Payables 36 8 Inventories 36 9 Property and equipment 37 10 Intangible Assets 39 11 Goodwill 41 12 Provisions 44 13 Commitments 45 14 Employee benefits 48 15 Post employment benefits 49 16 Other assets and liabilities 49 17 Equity 50
18 Revenues and Cost of Revenues 52 19 Selling, marketing and distribution expenses, general administrative expenses 52 20 Expenses by nature 53 21 Other operating income and expenses 533 22 Financial income 54 23 Financial expenses 54 24 Tax assets and liabilities 54 25 Earnings per share 58 26 Related parties 58 27 Nature and level of risks arising from financial instruments 62
28 Financial Instruments: Fair Value Disclosure 74
29 Operational Leases 76 30 Subsequent events 76
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Consolidated Statement of Financial Position
As at 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated
1
Audited
Notes 31 December 2012
31 December 2011
ASSETS Current Assets
272,863,854
239,353,162
Cash and Cash Equivalents 4 41,217,242
44,020,443
Financial Investments 28 --
7,663,242
Trade Receivables
145,947,567
120,167,171
- Due from Related Parties 26 12,130,087
9,514,773
- Other Trade Receivables 6 133,817,480
110,652,398
Other Receivables
9,686,129
1,309,659
- Other Receivables from Related Parties 26 20,984
251,970
- Other Receivables 7 9,665,145
1,057,689
Inventories 8 24,739,462
21,914,405
Other Current Assets 16 51,273,454
44,278,242
Non-Current Assets
834,398,796
746,595,773
Other receivables 7 432,515
6,867,703
Tangible Assets 9 607,024,646
547,122,837
Intangible Assets 10 20,903,936
7,449,473
Goodwill 11 169,659,985
143,933,905
Deferred Tax Assets 24 20,945,243
26,231,493
Other Non-Current Assets 16 15,432,471
14,990,362
TOTAL ASSETS
1,107,262,650
985,948,935
LIABILITIES
Current Liabilities
477,558,428
359,266,824
Financial Liabilities 5 170,958,492
115,814,216
Other Financial Liabilities 28 6,896,554
5,211,751
Trade Payables
134,474,792
152,192,050
- Due to Related Parties 26 32,541,356
29,156,434
- Other Trade Payables 6 101,933,436
123,035,616
Other Payables
66,442,798
21,983,557
- Due to Related Parties 26 29,478,619
578,943
- Other Payables 7 36,964,179
21,404,614
Corporate tax payable 24 6,136,102
374,769
Provisions 12 56,776,281
24,165,423
Other Current Liabilities 16 35,873,409
39,525,058
Non Current Liabilities
418,999,787
504,065,964
Financial Liabilities 5 384,800,280
445,996,829
Other Financial Liabilities
861,413
--
Trade Payables
6,980,597
8,399,726
- Other Trade Payables 6 6,980,597
8,399,726
Other Payables
13,599,164
36,860,388
- Other Payables 7 13,599,164
36,860,388
Employee Benefits 14 2,307,081
1,933,424
Deferred Tax Liabilities 24 7,140,871
5,937,060
Other Non-Current Liabilities 16 3,310,381
4,938,537
EQUITY
210,704,435
122,616,147
Shareholders’ Equity
197,140,423
117,309,352
Paid in Capital 17 100,000,000
100,000,000
Translation Reserves (49,222)
(28,862)
Legal Reserves 17 9,679,133
8,448,697
Retained Earnings 17 7,415,951
16,157,070
Net Income/Loss of the Period 80,094,561
(7,267,553)
Non - Controlling Interest 17 13,564,012
5,306,795
TOTAL LIABILITIES AND EQUITY
1,107,262,650
985,948,935
The accompanying notes are an integral part of these consolidated financial statements.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Consolidated Statement of Comprehensive Income
As at and for the year ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
2
Audited
1 January -
1 January -
Note 31 December 2012
31 December 2011
Revenues, net 18 1,260,830,323
1,009,476,468
Cost of Revenues 18 (1,046,043,779)
(793,348,551)
GROSS PROFIT
214,786,544
216,127,917
Selling, Marketing and Distribution Expenses 19 (35,314,881)
(30,793,586)
General Administrative Expenses 19 (57,769,305)
(45,312,332)
Other Operating Income 21 14,395,417
8,152,887
Other Operating Expense 21 (18,680,332)
(22,875,167)
OPERATING PROFIT
117,417,443
125,299,719
Finance Income 22 41,325,993
16,073,327
Finance Expense 23 (55,261,591)
(142,416,252)
INCOME/(LOSS) BEFORE TAX
103,481,845
(1,043,206)
Tax Expense
(21,053,553)
(5,356,267)
Current Tax Expense 24 (14,576,424)
(4,169,704)
Deferred Tax Expense 24 (6,477,129)
(1,186,563)
NET INCOME/(LOSS)
82,428,292
(6,399,473)
Other Comprehensive Loss
(20,360)
(28,862)
TOTAL COMPREHENSIVE INCOME
82,407,932
(6,428,335)
Net Income / (Loss) Attributable to
82,428,292
(6,399,473)
Non-Controlling Interest
2,333,731
868,080
Owners of the Company
80,094,561
(7,267,553)
Total Comprehensive Income Attributable to
82.359.385
(6.428.335)
Non-Controlling Interest
2.285.184
839.218
Owners of the Company
80.074.201
(7.267.553)
Earnings/ (Loss) per Share (for 1000 shares) 25 800.95
(72.68)
Diluted and Basic Earnings / (Losses) per Share (for
1000 shares)
800.95
(72.68)
The accompanying notes are an integral part of these consolidated financial statements.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Consolidated Statement of Shareholder’s Equity
As at and for the year ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
3
Note Paid in
Capital
Business
under
common
control
Share
Premium
Other
Reserves
Legal
Reserves
Translation
Reserve
Retained
Earnings
Net Income/
(Loss)
Total before
Non-
Controlling
Interest
Non-
controlling
Interest Total
Balances at 1 January 2011 100.000.000 -- -- -- 7.079.766 -- 7.176.607 11.453.399 125.709.772 5.613.910 131.323.682
Total comprehensive income
Profit for the year
-- -- -- -- -- -- -- (7,267,553)
(7,267,553) 868,080 (6,399,473)
Other comprehensive income
-- -- -- -- -- (28,862) -- -- (28,862) -- (28,862)
Total other comprehensive income
-- -- -- -- -- (28,862) -- -- (28,862) -- (28,862)
Total comprehensive income
-- -- -- -- -- (28,862) --
(7,267,553)
(7,296,415)
868,080
(6,428,335) Capital increase
-- -- -- -- -- -- -- -- -- -- --
Acquisition of subsidiary
-- -- -- -- -- -- -- -- -- 651,516 651,516
Acquisition of non-controlling
interests without a change in control
-- -- -- -- -- -- (1,104,005) -- (1,104,005) (649,948) (1,753,953)
Dividends
-- -- -- -- -- -- -- -- -- (1,176,763) (1,176,763)
Transfers
-- -- -- -- 1,368,931 -- 10,084,468 (11,453,399) -- -- --
Balances at 31 December 2011 17 100,000,000 -- -- -- 8,448,697 (28,862) 16,157,070 (7,267,553) 117,309,352 5,306,795 122,616,147
Balances at 1 January 2012
100,000,000 -- -- -- 8,448,697 (28,862) 16,157,070 (7,267,553) 117,309,352 5,306,795 122,616,147
Total comprehensive income
Profit for the year
-- -- -- -- -- -- -- 80,094,561 80,094,561 2,333,731 82,428,292
Other comprehensive income
(20,360)
(20,360)
(20,360)
Total other comprehensive income
(20,360) (20,360) (20,360)
Total comprehensive income
-- -- -- -- -- (20,360) -- 80,094,561 80,074,201 2,333,731 82,407,932
Capital increase
-- -- -- -- -- -- -- -- -- -- --
Acquisition of subsidiary
-- -- -- -- -- -- -- -- -- 7,221,254 7,221,254
Acquisition of non-controlling
interests without a change in control
-- -- -- -- -- -- (243,130) -- (243,130) (70,891) (314,021)
Dividends -- -- -- -- 1,230,436 --
-- -- (1,226,877) (1,226,877)
Transfers -- -- -- -- -- (8,497,989) 7,267,553 -- -- --
Balances at 31 December 2012 17 100,000,000 -- -- -- 9,679,133 (49,222) 7,415,951 80,094,561 197,140,423 13,564,012 210,704,435
The accompanying notes are an integral part of these consolidated financial statements.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Consolidated Statements of Cash Flows
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira(“TL”) unless otherwise stated
4
Audited
2012
2011
A. CASH FLOWS FROM OPERATING ACTIVITIES Note
Net Income / (Loss)
82,428,292
(6,399,473)
Adjustments:
Amortisation and depreciation 9,10
87,583,486
77,613,807
Provision for employee termination benefits 14
5,746,275
2,449,437
Provision for doubtful receivables 6
3,326,865
3,197,914
Unrealized finance income/(loss)
70,050
(417,553)
Patient income accruals
(7,103,525)
(3,591,363)
Doctor expense accruals 12
48,944,435
18,587,294
Other expense provisions 12
4,157,679
1,344,109
Deferred tax expense
6,477,129
807,100
Corporate tax provision
14,576,424
4,169,704
Provisions related to forward transactions
10,209,458
(6,847,609)
Interest income 22
(1,694,207)
(1,203,181)
Interest expense 23
26,522,814
21,409,906
Foreign exchange differences on fixed assets
1,216,965
--
Gain on sale of property and equipment (net)
5,688,987
(213,914)
Net operating profit before changes in
288,151,127
110,906,178
Change in trade receivables
(21,745,128)
(33,247,801)
Change in inventory
(2,648,375)
(7,174,514)
Change in other receivables
(1,941,460)
(6,696,733)
Change in other current assets
108,313
2,805,746
Change in other non-current assets
(442,109)
(9,681,216)
Change in trade payables
(29,716,033)
22,128,002
Change in due to related parties
229,183
19,705,220
Change in expense accruals
(716,344)
462,052
Corporate taxes paid
(8,815,091)
(6,448,761)
Change in other payables
(9,095,357)
(8,618,848)
Change in other liabilities
(5,279,806)
18,990,911
Employee severance indemnity paid
(5,372,618)
(3,003,714)
Provisions paid
(19,774,912)
(15,962,438)
Net cash generated from operating activities
182,941,390
84,164,084
B. CASH FLOW FROM INVESTING ACTIVITIES
Interest received
1,694,206
1,206,633
Acquisition of property and equipment 9
(112,584,767)
(84,189,997)
Proceeds from sale of property and equipment
5,549,469
13,941,575
Acquisition of intangible assets 10
(13,691,227)
(4,616,262)
Proceeds from sale of intangible assets
7,460
6,656
Cash outflow from acquisition of subsidiaries
(15,826,285)
(51,248,730)
Net cash (used in)/from investing activities
(134,851,144)
(124,900,125)
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from bank borrowings
109,921,727
166,332,876
Repayment of bank borrowings
(143,702,565)
(82,023,807)
Finance lease liabilities, net
(16,387,328)
(1,689,321)
Proceeds from borrowings obtained from related parties
28,899,676
75,342
Acquisition of non-controlling interest
(314,021)
(1,131,299)
Interest paid
(28,084,060)
(21,615,780)
Change in restricted cash balance
1,200,666
(14,126,304)
Dividends paid
(1,226,877)
(1,176,763)
Net cash (used in)/from financing activities
(49,692,782)
44,644,944
Net decrease (increase) in cash and cash equivalents
(1,602,535)
3,908,903
Cash and cash equivalents at 1 January
13,381,926
9,473,023
Cash and cash equivalents at 31 December
11,779,391
13,381,926
The accompanying notes are an integral part of these consolidated financial statements.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
5
1 Organization and Nature of Business
Acıbadem Sağlık Hizmetleri ve Ticaret A.Ş. (―the Company‖) was incorporated in 1991 in İstanbul.
The Company provides health services in sixteen hospitals (Kadıköy, Bakırköy, Kozyatağı, Fulya,
Eskişehir, Bursa, Kocaeli, Maslak, Kayseri, Adana, International Hospital, John F. Kennedy,
Göztepe Şafak, Sistina Hospital, Ankara, Bodrum), twelve medical centers (Ataşehir, Beylikdüzü,
Bağdat, Etiler, Göktürk, Konur Sağlık, Gemtıp, Bodrum Medikal, Medlife, Sesu, Turgutreis, Tolga
Sağlık), central laboratories (Labmed Klinik Laboratuvarları, Merkez Patoloji Laboratuvarı, Genetik
Tanı and Hücre Tedavı Merkezi, Labvital Gıda Kontrol Laboratuvarı) and branches located in thirty
two different areas. In addition to its core business, the Company organizes courses and seminars on
first aid, diabetics, smokeless living and infant care.
The Company complies with ―Joint Commission International‖ accreditation standards and ISO
9001 Quality Management System standards in its services in order to provide better quality care
and security for the patients.
The Company is registered to Capital Markets Board (―CMB‖). As a result of the Company‘s
requests dated 24 April 2012 and 19 September 2012 regarding the delisting of the Company‘s
shares traded at national stock exchange market in accordance with the CMB‘s ―Principles and
Conditions Regarding the Voluntary Delisting of Publicly Traded Companies‖;
* Following the delisting request of the Company from the Istanbul Stock Exchange (―ISE‖), a
tender offer was made in conjunction with purchases of investor shares.
* In accordance with CMB‘s regulations dated 30 July 2010, a blockaded reserve account of TL
9,016,073.42 at İMKB Takas ve Saklama Bankası A.Ş. for the purpose of acquiring the shares of
investors whom did not respond to the tender offers for a period of three years commencing from the
ISE board resolution date was considered.
Based on the ISE‘s board resolution dated 27 August 2012, it is decided that the shares representing
the Company‘s paid-in capital of TL 100,000,000 were suspended from trading at ISE in accordance
with ISE‘s Quotation Procedures Article 25 and CMB‘s regulations of delisting as stated above.
Trading activity ceased following the second session of the exchange at 4 October 2012.
The head office of the Company is located at ―Tekin Sok. No.8, Üsküdar/İstanbul.‖
As at 31 December shareholder structure of the Company is as follows:
31 December
2012
31 December
2011
Shareholder’s Name Share (%) Share (%)
Almond Holding Anonim Şirketi 98.65 91.97
Other individuals 1.19 5.52
Publicly owned shares 0.13 2.11
Mehmet Ali Aydınlar 0.03 0.4
Hatice Seher Aydınlar(*) 0 0
100.00 100.00
(*) Represents a single share.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
6
1 Organization and Nature of Business (continued)
On 24 January 2012, 60% and 15% of the shares of Acıbadem Sağlık Yatırımları Holding A.Ş.
(―ASYH‖) which owns 100% shares of Almond Holding Anonim Şirketi (―Almond‖), the main
shareholder of the Company, were acquired by IHH Berhad and Bagan Lalang Ventures Sdn. Bhd.
respectively. As a result of mandatory tender offer held between 27 March - 9 April and voluntary
tender offer held between 3 August – 16 August which is triggered in accordance with CMB‘s
delisting regulations and purchase of shares subsequent to the delisting of the Company, Almond‘s
ownership share in the Company increased to 98,65%.
Acıbadem Kadıköy Hospital
The hospital is located in Acıbadem- İstanbul. Indoor area of 17,600 m² and seven-story hospital
building has been rented for 25 years starting from 1 July 1995. The hospital is the Company‘s first
hospital and has been operating since 1991.
Acıbadem Bakırköy Hospital
The hospital was located at the Carousel Shopping Centre in Bakırköy- İstanbul and started to
provide health care services in July 2000. The hospital has 15 floors and is built over a total area of
17,500 m². The hospital building has been rented for 15 years starting from 1 July 1999.
Acıbadem Kozyatağı Hospital
The hospital building is located in Kozyatağı- İstanbul .Indoor area of 14,000 m² has been rented for
a period of 15 years starting from 1 May 2001. The hospital started to accept patients on 29 June
2004 and specialized in a neurology and cancer treatment.
Acıbadem Fulya Hospital
Acıbadem Fulya Hospital commenced its operations on 20 September 2010. The hospital has an
indoor area of 22,000 m². The hospital building has been rented from Beşiktaş Jimnastik Kulübü
Derneği for 20 years and hospital infrastructure and medical equipment were provided directly by
the Company.
Acıbadem Eskişehir Hospital
Acıbadem Eskişehir Hospital started its operations in 20 September 2010. The hospital has an indoor
area of 20,000 m². The hospital building has been rented for 20 years and hospital infrastructure and
equipment investments have been directly made by the Company.
Acıbadem Bursa Hospital
Acıbadem Bursa Hospital is a ten story building and built over an indoor area of 30,000 m². The
hospital has commenced its operations on 19 February 2006.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
7
1 Organization and Nature of Business (continued) Acıbadem Kocaeli Hospital
Acıbadem Kocaeli Hospital has commenced its operations in November 2006. An indoor area of
6,500 m² and 6 floors is rented for a period of ten years starting from 23 April 2006.
Acıbadem Maslak Hospital
Acıbadem Maslak Hospital has commenced its operations on 2 March 2009. The hospital is serving
in all branches of medicine, infertility treatment and in vitro fertilization, the third level infant
intensive care and provides service with rapid arc technology in oncology treatments. The primary
aim of the hospital is to provide healthcare services in general surgery, obstetrics, gynecology,
internal diseases and infant diseases. Besides the hospital has a high level diagnosis and treatment
laboratory of electrophysiology and interventional radiology.
Acıbadem Adana Hospital
Acıbadem Adana Hospital started to accept patients on 17 February 2009. The hospital has an indoor
area of 20,000 m².
Acıbadem Kayseri Hospital
Acıbadem Kayseri Hospital started to accept patients on 23 March 2009 and it has an indoor area of
20,000 m².
Acıbadem Bodrum Hospital
Acıbadem Bodrum Hastanesi started to accept patients on 11 June 2012. The hospital provides
services with an indoor area of 12.000 m² .
Acıbadem Ankara Hospital
Acıbadem Ankara Hospital Acıbadem Bodrum Hastanesi started to accept patients on 27 November
2012. The hospital provides services with an indoor area of 11.000 m². Advanced diagnostic and
treatment services are provided to the patients via Flash CT, fast and low radiation tomography
device and digital mammography equipment with 3D tomosenthesis capability. In addition,
advanced level radiology methods include digital x-rays, 1.5 Tesla MR, Meme US, colored doppler,
panoramic x-rays with sefalometry capability.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
8
1 Organization and Nature of Business (continued)
For the year ended 31 December 2012, The Group has commenced the construction of greenfield
hospital and hospital expansion projects in Halkalı-İstanbul, Maslak-İstanbul and Altunizade-
İstanbul.
At 31 December 2012 consolidated subsidiaries of the Company comprised the following:
- Acıbadem Labmed Sağlık Hizmetleri Anonim Şirketi (―Acıbadem Labmed‖)
- Acıbadem Mobil Sağlık Hizmetleri Anonim Şirketi (―Acıbadem Mobil‖)
- Acıbadem Orta Doğu Sağlık Yatırımları Anonim Şirketi (―Acıbadem Orta Doğu‖)(*)
- Acıbadem Poliklinikleri Anonim Şirketi (―Acıbadem Poliklinikleri‖)
- Acıbadem Sistina Medikal Kompani Doo Skopje" (―Acıbadem Sistina Medikal‖)
- BLAB Laboratuvar Hizmetleri Anonim Şirketi (―BLAB Laboratuvar‖) (*)
- Bodrum Medikal Özel Sağlık Hizmetleri Sanayi ve Ticaret Anonim Şirketi(‗‗Bodrum Medikal‘‘)(*)
- Bodrum Tedavi Hizmetleri Anonim Şirketi (‗‗Bodrum Tedavi‘‘) (*)
- Clinical Hospital Acibadem Sistina Skopje (―Acıbadem Sistina Hastanesi‖)
- Gemtıp Özel Sağlık Hizmetleri Sanayi ve Ticaret Limited Şirketi (―Gemtıp‖)
- International Hospital İstanbul Anonim Şirketi (―International Hospital‖)
- Konur Sağlık Hizmetleri Anonim Şirketi (―Konur Sağlık‖)
- Medlife Clinic Ambulance ve Özel Sağlık Hizmetleri Anonim Şirketi (‗‗Medlife‘‘) (*)
- Özel Turgutreis Poliklinik Hizmetleri Ticaret Anonim Şirketi (‗‗Turgutreis‘‘) (*)
- Sesu Özel Sağlık Hizmetleri Tıbbi Malzemeler ve Ticaret Anonim Şirketi. (‗‗Sesu‘‘) (*)
- Tolga Sağlık Hizmetleri Anonim Şirketi. (―Tolga Sağlık‖) (*)
- Turuncu Grup Sağlık Hizmetleri Danışmanlık İnşaat Ticaret Anonim Şirketi (―Turuncu Sağlık‖) (*)
- Yeni Sağlık Hizmetleri ve Ticaret Anonim Şirketi (―Yeni Sağlık‖)
(*) Company is acquired in 2012.
The Company and its consolidated subsidiaries are collectively named as ―Group‖.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
9
1 Organization and Nature of Business (continued) The nature of the activities of the consolidated subsidiaries is as follows:
Acıbadem Poliklinikleri
Acıbadem Poliklinikleri provides healthcare services to outpatients with five polyclinics located at
Etiler-İstanbul, Bağdat Caddesi- İstanbul, Ataşehir-İstanbul, Göktürk-İstanbul and Beylikdüzü-
İstanbul. Etiler, Bağdat Caddesi, Ataşehir, Göktürk and Beylikdüzü polyclinics were leased on 1
May 2006, 1 May 2004, 1 May 2008, 1 February 2007 and 1 April 2006, respectively.
Acıbadem Göz Sağlığı Hizmetleri Anonim Şirketi was established in June 2003 in İstanbul and
merged with Acıbadem Poliklinikleri, on 24 October 2008. .
Acıbadem Labmed
Acıbadem Labmed was established on 28 August 2001 under the name of Acıbadem Sağlık
Yönetimi Anonim Şirketi, in İstanbul. On 24 February 2004 the name of the company was changed
to Acıbadem Labmed Sağlık Hizmetleri A.Ş and a partnership was established with Labmed
Dortmund Gmbh-Germany to engage in laboratory services. The company has two branches located
in Adana and Antalya.
International Hospital
International Hospital was established in 1989. The hospital provides inpatient, outpatient and
emergency care services with the indoor area of 19,300 m² located on Yeşilköy-İstanbul. Acıbadem
Sağlık acquired International Hospital, 50% shares of International Hospital on 20 August 2005 and
increased its shares to 90% of total shares by acquiring 40% additional shares on 27 March 2009.
Acıbadem Sistina Hospital and Acıbadem Sistina Medikal
Acıbadem Sistina Hospital was incorporated on 21 October 2011 in Skopje – Macedonia. The
company provides cardiology, heart surgery, general surgery, internal medicine, gynecology,
urology and orthopedics services. The hospital has radiofrequency and laser applications, ultrasonic
systems, diametric applications, diagnosis laboratories, nuclear medicine applications, anesthesia
and intensive care units.
Acibadem Sistina Medikal is the owner of hospital building located in Skopje and medical equipments
which are leased by Acıbadem Sistina Hospital. Acıbadem Sistina Medikal was acquired on 21
October 2011 by the Group.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
10
1 Organization and Nature of Business (continued)
Yeni Sağlık
Yeni Sağlık operates two general purpose hospitals namely Özel Göztepe Şafak and John F. Kennedy.
Özel Göztepe Şafak Hospital has a total closed area of 6.000 m2 and started operations in 2004 April.
Following the merger with the Group in 1 April 2011, Özel Göztepe Şafak Hastanesi adopted the
quality standards of the Group. Göztepe Şafak Hospital‘s operations was suspended on 17 April 2012
due to required stabilization work for the building.
John F. Kennedy Hospital has commenced its operations on December 1999 and equipped with latest
technology medical equipments.
Konur Sağlık
Konur Sağlık was acquired by the Group on 2010 and provides inpatient and outpatient services in
Bursa. In 1996, the center awarded with the Hospital Certificate of Proficiency by Turkish Standards
Institution. The medical services provided at the medical center are internal medicine, general
surgery, neurology, neuropsychiatry, neurosurgery, pediatrics, pediatric surgery, cardiovascular
surgery, gynecological and delivery surgery, plastic surgery, micro and hand surgery, urology,
otorhinolaryngology diseases, eye, orthopaedics, traumatology, dermatology, physiotherapy,
microbiology, inflectional diseases, pathology, nuclear medicine, radiology, biochemistry, algology,
acupuncture, anesthesiology and reanimation.
Gemtıp
Gemtıp Gemlik Tıp Merkezi was acquired on 14 March 2011 and provides healthcare services in
Hamidiye, Bursa. Gemtıp has contracts with private health insurance companies, public entities and
Social Security Institution. The medical services provided at the medical center are general surgery,
pediatrics, gynecological and delivery surgery, internal medicine, orthopaedics, traumatology and
physical therapy and rehabilitation.
Acıbadem Mobil
Acıbadem Mobil provides emergency health care services and ambulatory services since 7 July 2008.
Acıbadem Orta Doğu
The Company was established on 28 May 2012 and the main purpose of the company is investing in
foreign hospital, medical center and other healthcare related projects in Middle East region.
Bodrum Tedavi
Bodrum Tedavi Hizmetleri was established on 21 July 2012 and acquired by the Group on 7 August
2012. Bodrum Tedavi controls Medlife, Sesu, Turgut Reis and Bodrum Medikal which provides
outpatient services at four separate locations in three districts of Bodrum-Muğla (Bodrum Central,
Gümbet and Turgutreis).
Turuncu Sağlık
Turuncu Sağlık was acquired by the Group on 5 November 2012 for the purpose of the acquisition of a
hospital license.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
11
1 Organization and Nature of Business (continued)
Tolga Sağlık
Tolga Sağlık was acquired by the Group on 1 December 2012 and provides outpatient services in
Levent,-İstanbul under the name of Acıbadem Levent Tıp Merkezi. The medical center provides
internal medicine, general surgery, neurology, dentistry, dermatology, obstetrics and gynecology,
metabolic balance, ENT, orthopaedics and traumatology services in addition to laser epilation, ultra
shape and aesthetic dermatology services.
BLAB
The Company was incorporated on 14 December 2012 and the main purpose of the BLAB is to
provide laboratory services.
The related parties of the Group are as follows:
- SZA Gayrimenkul Yatırım İnşaat ve Ticaret A.Ş. previously known as Acıbadem Holding Anonim
Şirketi
(―SZA Gayrimenkul‖)
- Acıbadem Sağlık ve Hayat Sigorta Anonim Şirketi (―Acıbadem Sigorta‖)
- Acıbadem Proje Yönetimi Anonim Şirketi (―Acıbadem Proje‖)
- Aplus Hastane ve Otelcilik Hizmetleri Anonim Şirketi (―Aplus Otelcilik‖)
- Acıbadem Sağlık Yatırımları Holding Anonim Şirketi (―Acıbadem Sağlık Yatırım‖)
- Almond Holding Anonim Şirketi (―Almond Holding‖)
- Akademia Sağlık Hizmet ve Sistemleri Yönetim ve Danışmanlık Anonim Şirketi (―Akademia‖)
- Çamlıca Turizm ve Yatçılık Anonim Şirketi (―Çamlıca Turizm‖)
- Acıbadem Eğitim ve Sağlık Vakfı (―Acıbadem Vakfı‖)
- Telepati Tanıtım Hizmetleri Anonim Şirketi (―Telepati Tanıtım‖)
- Acıbadem Üniversitesi (―Acıbadem Üniversite‖)
- Kerem Aydınlar Vakfı (―Kerem Aydınlar‖)
- Aydınlar Sağlık Hizmetleri Limited Şirketi (―Aydınlar Sağlık‖)
- Acıbadem Grubu Sigorta Aracılık Hizmetleri Anonim Şirketi (―Acıbadem Sigorta Aracılık‖)
- IHH Berhad ve iştirakleri (became related parties on 24 January 2012)
- Bagan Lalang Ventures Sdn. Bhd. (Related parties after 24 January 2012)
- Abraaj (Related party until 24 January 2012)
- Acıbadem Diş Limited Şirketi (―Acıbadem Diş Limited‖)
- BLAB Laboratuvar Hizmetleri Anonim Şirketi (―BLAB‖, related party until 14 December 2012)
- Çukurova Bilim Laboratuarları Anonim Şirketi (―Çukurova Bilim‖)
The companies listed above have neither direct nor indirect capital and management relationships
with Acıbadem Sağlık Hizmetleri Anonim Şirketi (―Acıbadem Sağlık‖) and not consolidated with
the Group in the accompanying financial statements.
As at 31 December 2012, the Group employed 10,427 personnel (31 December 2011: 9,383),
consisting of 1.177 administrative personnel (31 December 2011: 966), 7.421 doctors, nurses and
medical personnel (31 December 2011: 6,788), and 1,829 personnel employed on contractual basis
(31 December 2011: 1,629).
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
12
2 Basis of presentation of the consolidated financial statements
2.1 Basis of presentation
2.1.1 Statement of compliance
The Group maintains the consolidated companies‘ book of accounts and prepares thier statutory
financial statements in TL except subsidiaries located abroad in accordance with the Turkish
Uniform Chart of Accounts promulgated by Capital Markets Board of Turkey (―CMB‖), Turkish
Commercial Code and Turkish Tax Code.
According to the reflection the truth principle of financial statements, the accompanying
consolidated financial statements, classification and adjustments based on the legal records are
prepared in conformity with the principle of CMB accounting and reporting published by the
appropriate authorities. The Group's accompanying consolidated financial statements was prepared
in accordance with the provisions of Capital Market Board ("CMB") 9 April 2008, and 26842 of the
Official Gazette Series XI, 29 No. "Basis for Financial Reporting in the Capital Markets‖
("Communiqué No:XI-29").
According to the Article 5 of the Communiqué, companies will apply The International
Accounting/Financial Reporting Standards (―IAS / IFRS‖) adopted by the European Union.
However, according to the Transitional Article 2 included in the same Communiqué, IAS/IFRS will
be applied until the differences between IAS/IFRS that are adopted by European Union and
IAS/IFRS that are adopted by International Accounting Standards Board (―IASB‖), are announced
by Turkey Accounting Standards Board (―TASB‖). Within this context, consolidated financial
statements as of 31 December 2012 were prepared in accordance with IAS / IFRSs.
With the governing decree law numbered 660 published in official gazette on 2 November 2011, the
establishment article of TASB stated in the 2499 numbered law with an additional article number
one has been superseded and the Council of Ministers decided to establish Public Oversight
Accounting and Auditing Standards Agency (―Oversight Agency‖). In accordance with the
transitional article number one of the governing decree law, until the date of the issuing of standards
and regulations by Oversight Agency, the existing regulations will be applied. Accordingly, as of
reporting date, the Basis of Presentation has not been changed.
The accompanying consolidated financial statements of the Group have been approved by the Board
of Directors of the Group on 18 February 2013. The general assembly of the shareholders and legal
authorities has the authority to change the accompanying consolidated financial statements.
On 17 March 2005, CMB have taken the decision, for the companies that are operating in Turkey
and the CMB Accounting Standards financial statements prepared for, 1 January 2005 with effect
from the application of inflation accounting is no longer required has been announced.
Therefore, in the accompanying consolidated financial statements, since January 1, 2005, published
by TASB No. 29 "Financial Reporting in hyperinflationary economies" standard ("TAS 29") is not
implemented. The consolidated financial statements have been prepared on the historical cost basis
except for derivative financial instruments which are measured at fair value and balance sheet items
affected by the implementation of IAS 29.
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 consolidated
financial statements are to be distributed, may have significant influence on the accompanying
consolidated financial statements. Accordingly, the accompanying consolidated 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.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
13
2 Basis of presentation of the consolidated financial statements (continued)
2.1.2 Functional and presentation currency
These consolidated financial statements are presented in TL, which is the Group‘s functional
currency. All financial information presented in TL unless otherwise stated. All other currencies are
stated full unless otherwise stated.
2.1.3 Basis of consolidation
The accompanying consolidated financial statements include the accounts of Acıbadem Sağlık
Hizmetleri Anonim Şirketi and its subsidiaries and the basis set out in sections below. The financial
statements of the entities included in the consolidation have been prepared as at the date of the
consolidated financial statements.
(i) Subsidiaries
Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are
included in the consolidated financial statements from the date that control commences until the date
that control ceases.
The accounting policies of subsidiaries have been changed when necessary to align them with the
policies adopted by the Group. Losses applicable to the non-controlling interests in a subsidiary are
allocated to the non-controlling interests even if doing so causes the non-controlling interests to have
a deficit balance.
As at 31 December, the subsidiaries in which the Group owns direct or indirect control their
operations and the ownership interests are given below:
Ownership percentage (%)
Subsidiary 31 December 2012 31 December 2011
Acıbadem Poliklinikleri 99.99 99.99
Acıbadem Labmed 49.99 49.99
International Hospital 90.00 90.00
Tolga Sağlık 99.99 --
BLAB 99.99 --
Turuncu Sağlık 99.99 --
Acıbadem Orta Doğu 60.00 --
Acıbadem Mobil 99.99 99.99
Konur Sağlık 99.99 92.50
Gemtıp 68.00 58.00
Yeni Sağlık 99.90 99.90
Bodrum Tedavi 60.00 --
Medlife 99.99 --
Bodrum Medikal 99.99 --
Sesu 99.71 --
Turgutreis 99.99 --
Acıbadem Sistina Hastanesi 50.32 50.32
Acıbadem Sistina Medikal 50.00 50.00
As at 31 December 2012, subsidiaries are consolidated with full consolidation method and non-
controlling interests on the subsidiaries are reflected as a non-controlling interest.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
14
2 Basis of presentation of the consolidated financial statements (continued)
2.1.3 Basis of consolidation (continued)
(ii) Acquisition of non-controlling interests
Acquisitions of non-controlling interests are accounted for as transactions with owners in their
capacity as owners and therefore no goodwill is recognised as a result. The adjustments to non-
controlling interests are based on a proportionate amount of the net assets of the subsidiary.
(iii) Acquisitions through business combinations:
Business combinations are accounted for using the acquisition method as at the acquisition date– i.e.
when control is transferred to the Group. Control is the power to govern the financial and operating
policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes
into consideration potential voting rights that are currently exercisable.
The Group measures goodwill at the acquisition date as:
The fair value of the consideration transferred; plus
The recognised amount of any non-controlling interests in the acquiree; plus
If the business combination is achieved in stages, the fair value of the pre-existing equity
interest in the acquiree; less
The net recognised amount (generally fair value) of the identifiable assets acquired and
liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
The consideration transferred does not include amounts related to the settlement of pre-existing
relationships. Such amounts are generally recognised in profit or loss.
(iv) Loss of control
On the loss of control, the Group derecognizes the assets and liabilities of the subsidiary, any non-
controlling interests and the other components of equity related to the subsidiary. Any surplus or
deficit arising on the loss of control is recognized in profit or loss. If the Group retains any interest in
the previous subsidiary, then such interest is measured at fair value at the date that control is lost.
Subsequently, it is accounted for as an equity-accounted investee or as an available-for-sale financial
asset depending on the level of influence retained.
(v) Transaction eliminated on consolidation
Intra-group balances and transactions, and any unrealized income and expenses arising from intra-
group transactions, are eliminated in preparing the consolidated financial statements.
Consolidation adjustments
The balance sheets and income statements of subsidiaries are consolidated by using the full
consolidation method and investments in subsidiaries and related share capital reflected in the equity
are eliminated. Net assets of the subsidiaries which are not directly and /or indirect under the control
of the parent company are reflected as “Non-controlling Interest” line of the balance sheet, and the
net profit or loss which is not under the control of the parent company, is reflected as “Non-
controlling Interest” line in the income statement. Transactions and balances between consolidated
companies are eliminated during consolidation. Profit and loss occurred transactions of participation,
main partnership and consolidated subsidiaries, were classified/ arranged in accordance with share of
main partnership in participation. However, if losses after all these transactions showed the decline
of value, then classification/arrangement did not exercise.
2.1.4 Comparative Information
The group applied accounting policies and estimates consistent with prior year during the preparation
of its 31 December 2012 financial statements.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
15
2 Basis of presentation of the consolidated financial statements (continued)
2.1.5 Changes in accounting policies
The accounting policies have been applied consistently by the Group to all periods presented in the
consolidated financial statements. The Group consistently recognizes measures and presents the
transactions, other events and situations with the same nature. Material changes in accounting
policies or material errors (if any) are corrected, retrospectively; restating the prior period
consolidated financial statements.
2.1.6 Changes in accounting estimates
Effect of changes in accounting estimates affecting current period (if any) is recognized in the
current period; effect of changes in accounting estimates affecting current and future periods is
recognized in the current and also in future periods.
2.1.7 Changes in IFRS
New Standards and Interpretations Not Yet Adopted As At 31 December 2012
IFRS 10 ―Consolidated Financial Statements‖ standard is effective for annual periods beginning on
or after 1 January 2013 and are applied on a modified retrospective basis. This new Standard may be
adopted early, but IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities
should be also adopted early.
IFRS 11 ―Joint Arrangements‖ standard is effective for annual periods beginning on or after 1
January 2013 and are applied on a modified retrospective basis. This new Standard may be adopted
early, but IFRS 10 ―Consolidated Financial Statements‖ and IFRS 12 ―Disclosure of Interests in
Other Entities‖ should be also adopted early. The standard describes the accounting for joint ventures
and joint operations with joint control. Among other changes introduced, under the new standard,
proportionate consolidation is not permitted for joint ventures. The Company does not expect that
this standard will have a significant impact on the financial position or performance of the Company.
Amendment of IFRS12 ‗‘Disclosure of Interests in Other Entities‘‘ standard is effective for the
periods after 1 January 2013 with earlier application is permitted. IFRS 12 includes all of the
disclosures that were previously in IAS 27 ―Consolidated and Separate Financial Statements‖ related
to consolidated financial statements, as well as all of the disclosures that were previously included in
IAS 31 ―Interests in Joint Ventures‖ and IAS 28 ―Investment in Associates‖. These disclosures relate
to an entity‗s interests in subsidiaries, joint arrangements, associates and structured entities. Under
the new standard it is expected that more comprehensive disclosures will be given for interests in
other entities.
Revised IFRS 13 ―Fair Value Measurement‖ provides guidance on how to measure fair value under
IFRS but does not change when an entity is required to use fair value. It is a single source of
guidance under IFRS for all fair value measurements. The new standard also brings new disclosure
requirements for fair value measurements. IFRS 13 is effective for annual periods beginning on or
after 1 January 2013 and will be adopted prospectively. Early application is permitted. The new
disclosures are only required for periods beginning after IFRS 13 is adopted — that is, comparative
disclosures for prior periods are not required. The Company is in the process of assessing the impact
of the new standard on the financial position or performance of the Company.
The Company is not planning to early adoption of those standards.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
16
2 Basis of presentation of the consolidated financial statements (continued)
2.1.7 Changes in IFRS (continued)
New Standards and interpretations not yet Adopted As At 31 December 2012(continued)
The amendments to IAS 1 ―Presentation of Financial Statements‖ are effective for annual periods
beginning on or after 1 January 2013. The amendments to IAS 1 change only the grouping of items
presented in other comprehensive income. Items that could be reclassified to profit or loss at a future
point in time would be presented separately from items which will never be reclassified.
Amended IAS 19 ―Employee Benefits‖ standard is effective for annual periods beginning on or after
1 January 2013, with earlier application permitted. With very few exceptions retrospective
application is required. Numerous changes or clarifications are made under the amended standard.
Among there numerous amendments, the most important changes are removing the corridor
mechanism and making the distinction between short-term and other long-term employee benefits
based on expected timing of settlement rather than employee entitlement. The Company is in the
process of assessing the impact of the new standard on the financial position or performance of the
Company
IAS 27 Consolidated and Separate Financial Statements addresses the accounting for consolidated
financial statements. A new definition of control is introduced, which is used to determine which
entities are consolidated. This is a principle based standard and require preparers of financial
statements to exercise significant judgment. This amendment will not have any impact on the
financial position or performance of the Group.
As a consequential amendment to IFRS 10, the IASB also amended IAS 27, which is now limited to
accounting for subsidiaries, jointly controlled entities, and associates in separate financial statements.
Transitional requirement of this amendment is similar to IFRS 10. A new definition of control is
introduced, which is used to determine which entities are consolidated. This is a principle based
standard and require preparers of financial statements to exercise significant judgment. This
amendment will not have any impact on the financial position or performance of the Group. The
amendment will be effective for annual periods beginning on or after 1 January 2013.
IAS 28 ‗‘Investments in Associates and Joint Ventures‘‘ (2011), is replaced with the old standard
issued in 2008 and effective after the period 1 January 2013.
IFRS 7 Financial Instruments: Disclosures - Enhanced Derecognition Disclosure Requirements is
amended. The purpose of this amendment is to allow users of financial statements to improve their
understanding of transfer transactions of financial assets (e.g. securitizations), including
understanding the possible effects of any risks that may remain with the entity which transferred the
assets. The amendment also requires additional disclosures if a disproportionate amount of transfer
transactions are undertaken around the end of a reporting period. Comparative disclosures are not
required. The amendment affects disclosures only and did not have any impact on the financial
position or performance of the Group. Amended standard is effective for annual periods beginning
on or after 1 January 2013, with earlier application permitted. With very few exceptions
retrospective application is required.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
17
2 Basis of presentation of the consolidated financial statements (continued)
2.1.7 Changes in IFRS (continued)
New Standards and Interpretations Not Yet Adopted As At 31 December 2012(continued)
IFRS 9 Financial Instruments – Classification and measurement is amended. As amended in
December 2011, the new standard is effective for annual periods beginning on or after 1 January
2015. Phase 1 of this new IFRS introduces new requirements for classifying and measuring financial
instruments. The amendments made to IFRS 9 will mainly affect the classification and measurement
of financial assets and measurement of fair value option (FVO) liabilities and requires that the
change in fair value of a FVO financial liability attributable to credit risk is presented under other
comprehensive income. Early adoption is permitted. This standard has not yet been endorsed by the
EU. The Group is in the process of assessing the impact of the amendment on financial position or
performance of the Group.
IAS 32 Financial Instruments: Presentation - Offsetting Financial Assets and Financial liabilities is
amended. The amendments clarify the meaning of - currently has a legally enforceable right to set-
off‖ and also clarify the application of the IAS 32 offsetting criteria to settlement systems (such as
central clearing house systems) which apply gross settlement mechanisms that are not simultaneous.
These amendments are to be retrospectively applied for annual periods beginning on or after 1
January 2014. The Group does not expect that these amendments will have significant impact on the
financial position or performance of the Group.
2.1.8 Offsetting
The Group‘s financial assets and liabilities are offset and the net amount is presented in the balance
sheet when and only when there is a legally enforceable right to set off the amounts and there is an
intention to settle on a net basis or to realize the asset and settle the liability simultaneously.
2.2 Summary of Significant Accounting Policies
Significant accounting policies applied during the preparation of the consolidated financial
statements are summarized as follows:
2.2.1 Revenue
Revenue of the Group comprised the income from the inpatient/outpatient services given at the
hospitals, polyclinics, laboratories and eye centers of the Group. The revenues for these services are
mostly realized in cash or collectible from the insurance companies and the fair value of sales price
is calculated by reducing the present value of these receivables. The interest rate which reduces the
nominal value of the related service to its cash sale price is used to determine the present value of the
receivables. The difference between the nominal value of the sale price and the fair value obtained
by this way is reflected as interest income to the related periods.
Revenue from rendering of services is recognised in profit or loss in proportion to the stage of
completion of the transaction at the reporting date. The stage of completion is assessed with
reference to surveys of work performed.
When an uncertainty arises about the collectability of an amount already included in revenue, the
doubtful receivable amount is recognized as an expense, rather than as an adjustment of the revenue
already recognized. Net sales represents invoiced gross sales amount minus returns and discounts.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
18
2 Basis of presentation of the consolidated financial statements (continued)
2.2.2 Inventories
Inventories are stated at the lower of cost or net realizable value. Cost elements included in
inventories are all procurement costs, conversion costs and all other relevant costs in bringing the
inventories into their current state of location. The unit cost of inventories is determined on the
weighted average basis. Net realizable value is the estimated selling price in the ordinary course of
the business, less the selling expenses.
2.2.3 Property and equipment
i) Recognition and measurement
The costs of property and equipment purchased before 1 January 2005 are restated for the effects of
inflation current at 31 December 2004 less accumulated depreciation and impairment losses. The
costs of tangible assets purchased after 31 December 2004 are carried at cost less accumulated
depreciation and impairment losses if any. Cost includes expenditure that is directly attributable to
the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct
labor, any other costs directly attributable to bringing the asset to a working condition for its intended use,
and capitalized borrowing costs.
ii) Subsequent expenditures
The cost of replacing part of an item of property and equipment is recognised in the carrying amount
of the item if it is probable that the future economic benefits embodied within the part will flow to
the Group. The costs of the day-to-day servicing of tangible asset are recognised in the consolidated
statement of income comprehensive as incurred.
iii) Depreciation
Depreciation is recognized on a straight-line basis over the useful lives of the tangible assets from
the date of acquisition or assembly. Leasehold improvements are depreciated on a straight-line basis
over the lease period. Leasehold improvements are amortized on a straight-line basis over the shorter
of the lease term, which generally includes reasonably assured option periods, or the estimated useful
lives of the assets. Depreciation expenses are presented under cost of sales, general and
administrative expenses and selling, marketing expense on the consolidated statement of
comprehensive income. Land is not depreciated, since useful live of it is accepted as infinite.
The estimated useful lives are as follows:
Buildings
50 years
Machinery and equipments 3-20 years
Vehicles 4-7 years
Furniture and fixtures 3-10 years
Leased Assets 5-12 years
Other tangible assets 5 years
Leasehold improvements 2-25 years
Depreciation methods, useful lives and residual values are reviewed at each reporting period end and
adjusted if appropriate.
iv) Disposal
Gains or losses on disposals of property and equipment are included in the relevant income and
expense accounts and the cost and accumulated depreciation of property and equipment has been
derecognized from the relevant accounts as appropriate.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
19
2 Basis of presentation of the consolidated financial statements (continued)
2.2.4 Intangible assets
Intangible assets consist of acquired software and other intangible assets. The costs of intangible
assets purchased before 1 January 2005 are restated for the effects of inflation current at 31
December 2004 less accumulated amortization and impairment losses. The costs of intangible assets
purchased after 31 December 2004 are carried at cost less accumulated amortization and impairment
losses, if any. The carrying amount of an intangible asset is reduced to its recoverable amount if there
is impairment.
i) Amortization
Intangible assets are amortized on a straight-line basis in the income statement over their estimated
useful lives for a period.
The estimated useful lives are as follows:
Software 3-10 years
Other intangible assets 3-10 years
2.2.5 Goodwill
After 1 January 2005, in accordance with IFRS 3 ―Business Combinations‖, the excess amount of
fair value of identified assets, liabilities and conditional liabilities that are acquired purchasing price
over is recorded as goodwill. The goodwill arising from the merger is not amortized. Goodwill is
subject to impairment test once a year or more frequently when there is an indication of impairment.
Goodwill is measured at cost less accumulated impairment losses. In respect of equity accounted
investees, the carrying amount of goodwill is included in the carrying amount of the investment, and
any impairment loss is allocated to the carrying amount of the equity accounted investee as a whole.
Each unit or group of units to which the goodwill is so allocated represents the lowest level within
the entity at which the goodwill is monitored for internal management purposes. Impairment losses
are determined by assessing the recoverable value of cash-generating unit or group related to
goodwill. Impairment loss is recognized even if the recoverable amount of the cash-generating unit
connected to the unit less than the amount of the cash generating unit. Impairment losses relating to
goodwill cannot be reversed in future periods.
2.2.6 Impairment of Assets
i) Financial Assets
A financial asset is considered to be impaired if objective evidence indicates that one or more events
have had a negative effect on the estimated future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortized cost is calculated as the
difference between its carrying amount and the present value of the estimated future cash flows
discounted at the original effective interest rate.
Individually significant financial assets are tested for impairment on an individual basis. The
remaining financial assets are assessed collectively in groups that share similar credit risk
characteristics. All impairment losses are recognized in the consolidated statement of comprehensive
income.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after
the impairment loss was recognized. The reversal of the impairment in respect of the discounted
financial assets is recognized in the consolidated statement of comprehensive income.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
20
2 Basis of presentation of the consolidated financial statements (continued)
2.2 Summary of Significant Accounting Policies (continued)
2.2.6 Impairment of Assets (continued)
ii) Non-financial assets
At each balance sheet date the Group reviews the carrying amount of the assets to determine whether
there is an indication of impairment. If any such indication exists then the asset‘s recoverable amount
is estimated.
Impairment losses are recognized if the carrying amount of the assets or the cash generating unit
exceeds its estimated recoverable amount. Assets are grouped together into the smallest group of
assets that generates cash inflows from continuing use that are largely independent of the cash
inflows of other assets or groups of assets. Impairment losses are recognized in the consolidated
statement of comprehensive income.
Impairment losses recognized in respect of the cash generating units are allocated first to reduce the
carrying amount of goodwill then to reduce the carrying amounts of the other assets in the unit
(group of units) on a pro rata basis.
The recoverable amount of an asset or cash generating unit is the greater of its value in use and its
fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to that asset.
In respect of other assets, impairment losses recognized in prior periods are assessed at each
reporting date for any indications that the loss has decreased or no longer exists. An impairment loss
is reversed if there has been a change in the estimates used to determine the recoverable amount. An
impairment loss is reversed only to the extent that the asset‘s carrying amount does not exceed the
carrying amount that would have been determined, net of depreciation or amortization, if no
impairment loss had been recognized.
According to TAS 36 ―The Standard on Impairment of Assets‖, if there are changes in conditions
and circumstances that would be an indication of impairment in goodwill, the impairment tests are
performed more frequently than once a year.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
21
2 Basis of presentation of the consolidated financial statements (continued)
2.2 Summary of Significant Accounting Policies (continued)
2.2.7 Financial instruments
i) Non derivative financial assets
The Group initially recognizes loans and the receivables on the date they are originated. All other
financial assets are recognized initially on the trade date at which the Group becomes a party to the
contractual provisions of the inflows.
The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset
expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a
transaction in which substantially all the risks and rewards of ownership of the financial asset are
transferred. Any interest in transferred financial assets that is created or retained by the Group is
recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial
position when, and only when, the Group has a legal right to offset the amounts and intends either to
settle on a net basis or to realize the asset and settle the liability simultaneously.
Non-derivative financial assets of the Group comprise trade and other receivables, cash and cash
equivalents.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash balances and call deposits with maturities of three months
or less from the acquisition date that are subject to an insignificant risk of changes in their fair value,
and are used by the Group in the management of its short-term commitments.
Trade and Other Receivables
Trade receivables are previously recognized at invoice value. Nevertheless, after the initial The fair
values of trade and other receivables, excluding construction work in progress, are estimated at the
present value of future cash flows, discounted at the market rate of interest at the measurement date.
Short-term receivables with no stated interest rate are measured at the original invoice amount if the
effect of discounting is immaterial. Fair value is determined at initial recognition and, for disclosure
purposes, at each annual reporting date.
ii) Non derivative financial liabilities
Financial assets and liabilities are offset and the net amount presented in the statement of financial
position only if the Group has a legal right to offset the amounts and intends either to settle on a net
basis or to realize the asset and settle the liability simultaneously.
Non-derivative financial liabilities of the Group comprise loans and trade payables and other
payables.
Financial liabilities are initially recorded at their initial costs less any transaction costs. In the periods
subsequent to their initial recognition the difference between their initial amounts their present value
as determined by discounting their repayment amounts by applying the effective interest rate is
reflected in the consolidated statements of comprehensive income.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
22
2 Basis of presentation of the consolidated financial statements (continued)
2.2 Summary of Significant Accounting Policies (continued)
2.2.7 Financial instruments
iii) Paid-in capital
Ordinary shares are classified as paid-in capital.
iv) Derivative financial instruments
The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk
exposures.
Derivatives are recognised initially at acquisition cost; attributable transaction costs are recognised in
profit or loss when incurred. Subsequent to initial recognition, derivatives are measured at fair value.
The Group‘s derivative financial instrument consists of mainly forward transactions and interest rate
swap. Although these financial instruments provide effective economic protection against risks, they
are accounted for as derivative financial instruments reflected as trading securities or other financial
liabilities because they do not meet the hedge accounting criteria under IAS 39.
2.2.8 Foreign Currency Transactions
Transactions in foreign currencies have been translated to TL at the exchange rates prevailing at the
dates of the transactions. Monetary assets and liabilities denominated in foreign currencies have been
translated into TL at the exchange rates prevailing at the balance sheet dates. Foreign exchange gains
or losses arising from the settlement of such transactions and from the translation of monetary assets
and liabilities are recognized in the consolidated statement of comprehensive income. Non-monetary
assets and liabilities denominated in foreign currencies are translated to TL with the exchange rates
at the dates of transaction.
As at 31 December, Central Bank of the Republic of Turkey ("Central Bank")‘s buying foreign
currency rates are as follows::
31 December 2012 31 December 2011
American Dollar (―USD‖) 1,7826 1,8889
European Union Currency (―EUR‖) 2,3517 2,4438
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising
on acquisition, are translated to TL at exchange rates at the reporting date. The income and expenses
of foreign operations are translated to TL at exchange rates at the dates of the transactions.
Foreign currency differences are recognised in other comprehensive income, and presented in the
foreign currency translation reserve (translation reserve) in equity. However, if the foreign operation
is a non-wholly owned subsidiary, then the relevant proportion of the translation difference is
allocated to non-controlling interests. When a foreign operation is disposed of such that control,
significant influence or joint control is lost, the cumulative amount in the translation reserve related
to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When
the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while
retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling
interests. When the Group disposes only part of its investment in an associate or joint venture that
includes a foreign operation while retaining significant influence or joint control, the relevant
proportion of the cumulative amount is reclassified to profit or loss.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
23
2 Basis of presentation of the consolidated financial statements (continued)
2.2 Summary of Significant Accounting Policies (continued)
2.2.8 Foreign Currency Transactions (continued)
When the settlement of a monetary item receivable from or payable to a foreign operation is neither
planned nor likely in the foreseeable future, foreign currency gains and losses arising from such item
are considered to form part of the net investment in the foreign operation and are recognised in other
comprehensive income, and presented in the translation reserve in equity.
2.2.9 Earnings per share
Earnings per share disclosed in the consolidated statement of comprehensive income is determined
by dividing net earnings by the weighted average number of shares that have been outstanding
during the related period concerned.
In Turkey, companies can increase their share capital by making a pro-rata distribution of shares
("bonus shares") to existing shareholders from retained earnings and inflation adjustments on equity
items. Such bonus shares are taken into consideration in the computation of earnings per share as
issued share certificates. For the purpose of earnings per share computations, the weighted average
number of shares outstanding during the period has been adjusted in respect of bonus shares issued
without a corresponding change in resources, by giving them retroactive effect for the year in which
they were issued and each earlier year.
2.2.10 Events after the reporting date
If there has been events after the reporting date that would require the restatement of the
consolidated financial statements; the Group restates the consolidated financial statements
accordingly. If such events are significant but do not require the restatement of the consolidated
financial statements, they are disclosed in the related notes.
2.2.11 Provisions, contingent assets and liabilities
A provision is recognized in the accompanying consolidated financial statements if as a result of a
past event, the Group has a present legal or constructive obligation that can be estimated reliably and
it is probable that an outflow of economic benefits will be required to settle the obligation.
Contingent liabilities are reviewed to determine if there is a possibility that the outflow of economic
benefits will be required to settle the obligation. Except for the economic benefit outflow possibility
is remote such contingent liabilities is disclosed in the notes to the financial statements. If the inflow
of economic benefits is probable contingent assets have been disclosed in the notes to the financial
statements. If the inflow of the economic benefit is more than likely to occur such asset and income
statement effect has been recognized in the financial statements at the relevant period that income
change effect occurs.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
24
2 Basis of presentation of the consolidated financial statements (continued)
2.2 Summary of Significant Accounting Policies (continued)
2.2.13 Related parties
Subsidiaries, shareholders of the Company and companies of the shareholders, and also other
companies managed by these companies or related to these companies and managers and directors of
these companies are referred to as related parties. Group is managing transactions with its
subsidiaries due to common operations.
(a) A person or a close member of that person‘s family is related to a reporting entity if that person:
(i) has control or joint control over the reporting entity;
(ii) has significant influence over the reporting entity; or
(iii) is a member of the key management personnel of the reporting entity or of a
parent of the reporting entity.
(b) An entity is related to a reporting entity if any of the following conditions applies:
(i) The entity and the reporting entity are members of the same group (which means that each parent,
subsidiary and fellow subsidiary is related to the others).
(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a
member of a group of which the other entity is a member).
(iii) Both entities are joint ventures of the same third party.
(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third
entity.
(v) The entity is a post-employment benefit plan for the benefit of employees of either the reporting
entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the
sponsoring employers are also related to the reporting entity.
(vi) The entity is controlled or jointly controlled by a person identified in (a).
(vii) A person identified in (a) (i) has significant influence over the entity or is a member of the key
management personnel of the entity (or of a parent of the entity).
2.2.12 Leasing transactions
Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are
classified as finance leases. The property and equipment acquired through financial leasing in the
Group’s consolidated balance sheet are recorded on the asset side at the lower of its fair value or the
present value of the minimum lease payments, and related obligation is reflected on the liability side
at the present value of the minimum lease payments. Interest element included in the lease
installments are reflected in the consolidated income statement. The tangible assets obtained by way
of financial leases are depreciated through their useful lives.
When the lease period is shorter than the useful life of the leased asset and it is not certain whether
the Group will purchase the leased asset at the end of the lease period, it is depreciated during the
period of lease. When the leased asset’s useful life is shorter than leased period, leased assets are
depreciated during the useful life.
The lease transactions are classified as operational leasing where the risks and rewards are on the
part of the lessor. Operational lease payments are recorded as expense in the consolidated statement
of comprehensive income on a linear basis.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
25
2 Basis of presentation of the consolidated financial statements (continued)
2.2 Summary of Significant Accounting Policies (continued)
2.2.14 Segment reporting
IFRS 8 requires that a measure of segment assets be disclosed only if the amounts are regularly
provided to Chief Decision Maker, consistent with the equivalent requirement for the measure of
segment liabilities.
The Group‘s main business activity consists of hospital and healthcare services. As a result of the
activity variation, the Group revenues are allocated as hospital, healthcare and non-healthcare branches.
All Group revenues have been realized in domestic basis except as subsidiaries in Macedonia.
The operating segments of the Group are presented in Note 3.
2.2.15 Taxes
Income tax comprises current and deferred tax. Income tax expense is recognised in profit or loss
except to the extent that it relates to a business combination, or items recognised directly in equity or
in other comprehensive income. Current tax is the expected tax payable on the taxable income for the
year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax
payable in respect of previous years.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for the following temporary differences: the initial recognition of
assets or liabilities in a transaction that is not a business combination and that affects neither
accounting nor taxable profit, and differences relating to investments in subsidiaries and jointly
controlled entities to the extent that it is probable that they will not reverse in the foreseeable future.
In addition, deferred tax is not recognised for taxable temporary differences arising on the initial
recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to
the temporary differences when they reverse, based on the laws that have been enacted or
substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes
levied by the same tax authority on the same taxable entity, or on different tax entities, but they
intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be
realized simultaneously. A deferred tax asset is recognised for unused tax losses, tax credits and
deductible temporary differences, to the extent that it is probable that future taxable profits will be
available against which they can be utilized. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Transfer pricing regulations
In Turkey, the transfer pricing provisions have been stated under the Article 13 of the Corporate Tax
Law with the heading of ―disguised profit distribution via transfer pricing‖. The General
Communiqué on disguised profit distribution via Transfer Pricing, dated 18 November 2007 sets
details about implementation. If a taxpayer enters into transactions regarding the sale or purchase of
goods and services with related parties, where the prices are not set in accordance with the arm‘s
length principle, then related profits are considered to be distributed in a disguised manner through
transfer pricing. Such disguised profit distributions through transfer pricing are not accepted as tax
deductible for corporate income tax purposes.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
26
2 Basis of presentation of the consolidated financial statements (continued)
2.2 Summary of Significant Accounting Policies (continued)
2.2.16 Employee Benefits
In accordance with the existing Labor Law in Turkey, the Group entities operating in Turkey are
required to make lump-sum payments to employees who have completed one year of service and
whose employment is terminated without cause or who retire, are called up for military service or in
the event of death. In the accompanying consolidated financial statements, the Group has used
actuarial valuation method to estimate its obligation.
As at 31 December, the following assumptions were used in the calculation of the total liability:
31 December 2012 31 December 2011
Discount rate %2.76 %3.91
Turnover rate for the calculation of retirement %77.00 %77.00
Reserve for employee termination benefits is calculated based on the ceiling amount which is
determined by the Government. As at 31 December 2012 and 31 December 2011, the ceiling amount
has been limited to TL 3.034 and TL 2.732 per year of employment, respectively. The liability is not
funded, as there is no funding requirement.
2.2.17 Statement of Cash Flows
Cash flows for the period are reported based on operating, investing and financing activities. Cash
flows from operating activities represent the Group‘s cash flows generated from operating activities.
The Group presents the cash flows by using the indirect method such as adjusting the accruals for
cash inflows and outflows from gross profit/loss, other non-cash transactions, prior and future
transactions or deferrals.
Cash flows from investing activities represent the cash flows used in/provided from investing
activities (capital expenditures).
Cash flows from financing activities represent the funds used in and repayment of the funds during
the period.
Cash and cash equivalents, represents on cash on hand and deposits at banks with a maturity less
than three months and investments which have a maturity less than three months at the date of initial
recognition. Cash and cash equivalents included in the cash flow statement comprise cash and bank
deposits and financial assets which mature in less than three months.
2.2.18 Expenses
Expenses are accounted for on accrual basis. Expenses related to cost of sales and operating
expenses are recognized as they incur. Rent payments are recorded as expense on installments in the
consolidated comprehensive income statement during the rent period
Financial incomes and expenses
Interest income and expenses in income statement are accounted on accrual basis considering the
effective interest rate and applicable variable interest rate on the related asset.
Interest income and expenses consist of the present value of the difference or premium or discount of
the accounted value of an interest bearing instrument and the due date value calculated with the
effective interest rate system. Finance expenses related to the investment cost can be capitalized
during the investment process.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
27
2 Basis of presentation of the consolidated financial statements (continued)
2.3 Accounting Estimates and Judgments
Preparation of consolidated financial statements requires management to implement the policies and
to make estimations and judgments which affect the income and expense amounts, assets and
liabilities. Actual results may be differ from this estimated amounts.
Estimations and judgments which form a basis for these assumptions are reviewed on a regular basis.
Updates in accounting estimations are recorded in the period of update and following periods which
are affected from these judgments.
Significant estimations and assumptions used by Group to prepare financial statements are shown in
the notes below:
Note 2.2.3- 2.2.4 - Useful lifes of tangible and intangible assets
Note 2.2.7 - Financial derivative instruments
Note 6 - Allowance for trade receivables
Note 11 - Goodwill impairment tests
Note 12 - Provisions, contingent assets and liabilities
Note 14 - Employee benefits
Note 24 - Tax assets and liabilities
Note 28 - Financial instruments-fair value disclosures
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
28
3 Segment reporting
Main business activity of the Group is defined as providing of healthcare services. The Group
defined its operating segments as hospital and other healthcare related activities.
1 January– 31 December 2012
Hospital Healthcare Total
External revenues 1,148,621,951 148,847,211 1,297,469,162
Inter-segment revenue -- 36,638,839 36,638,839
Reportable segment revenue 1,148,621,951 112,208,372 1,260,830,323
Reportable segment cost of revenue (947,266,205) (98,777,574) (1,046,043,779)
Reportable segment gross profit 201,355,746 13,430,798 214,786,544
Operating expenses (93,084,186)
Other operating income/expense (net) (4,284,915)
Financial income/expense (net) (13,935,598)
Tax expense (21,053,553)
Net income for the period 82,428,292
31 December 2012
Hospital
Healthcare Total
Reportable segment assets
1,011,904,502
95,358,148 1,107,262,650
Capital expenditures
(159,201,653)
(6,158,810) (165,360,463)
Reportable segment liabilities
843,134,767
53,423,448 896,558,215
Amortization and depreciation
(82,270,035)
(5,313,451) (87,583,486)
1 January– 31 December 2011
Hospital Healthcare Total
External revenues 936,652,079 111,763,578 1,048,415,657
Inter-segment revenue -- 38,939,189 38,939,189
Reportable segment revenue 936,652,079 72,824,389 1,009,476,468
Reportable segment cost of revenue (732,803,641) (60,544,910) (793,348,551)
Reportable segment gross profit 203,848,438 12,279,479 216,127,917
Operating expenses (76,105,918)
Other operating income/expense (net) (14,722,280)
Financial income/expense (net) (126,342,925)
Tax expense (5,356,267)
Net income for the period (6,399,473)
31 December 2011
Hospital
Healthcare Total
Reportable segment assets
927,634,970
58,313,965 985,948,935
Capital expenditures
(95,393,653)
(1,078,287) (96,471,940)
Reportable segment liabilities
833,369,979 29,962,806 863,332,785
Amortization and depreciation
(72,545,759)
(5,068,048) (77,613,807)
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
29
3 Segment Reporting (continued)
Geographical Information
The Hospital and healthcare segments are primarily operates in Turkey and Macedonia. According to
geographical segment reporting, revenue and assets geographic are presented with respect to the
geographical locations of customers. As at 31 December, total geographical area of risk
concentrations are indicated below:
2012
Revenue Non-current assets(*)
Turkey 1,217,769,574 609,651,798
Macedonia 43,060,749 18,276,784
1,260,830,323 627,928,582
2011
Revenue Non-current assets (*)
Turkey 1,000,533,472 532,589,725
Macedonia 8,942,996 21,982,585
1,009,476,468 554,572,310
(*) Non-current assets comprises of tangible assets and intangible assets.
4 Cash and Cash Equivalents
As at 31 December, cash and cash equivalents comprised the following:
31 December 2012 31 December 2011
Cash on hand 329,852 982,281
Banks – demand deposits 5,020,333 2,940,688
Banks – time deposits 30,738,782 35,723,160
Mutual fund (B type liquid fund) 454,077 484,910
Credit card receivables 4,674,198 3,889,404
41,217,242 44,020,443
As at 31 December 2012, maturities for TL range between 2-18 days (31 December 2011: 2-10 days)
and 29 days for USD. Interest rates range between %5,00 - %8,10 for TL (31 December 2011: %4,50
- %9,75) and %2,50 for USD.
As at 31 December 2012, the Group has blocked deposits at an amount of TL 27,639,600 (31
December 2011: TL 30,039,668) for the purpose of servicing semi-annual principal and interest
payments of bank borrowing amounting to USD 154,000,000 obtained from a commercial bank
located in Turkey and the Group has blocked deposits at an amount of USD 1,008,780 (31 December
2011: USD 317,036) in purpose of servicing of semi-annual interest payments of bank borrowing
amounting to USD 25,904,032.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
30
4 Cash and cash equivalents (continued)
For purposes of the statement of cash flows, cash and cash equivalents include bank deposits and
short-term investments that are easily convertible to cash with high liquidity and with a maturity of
up to three months.
Cash and cash equivalents included in the statement of cash flows for the years ended 31 December
is comprised of the following:
31 December 2012 31 December 2011
Cash on hand 329,852 982,281
Banks – demand deposits 5,020,333 2,940,688
Banks – time deposits 30,738,782 35,723,160
Mutual fund (B type liquid fund) 454,077 484,910
Credit card receivables 4,674,198 3,889,404
Restricted cash (29,437,851) (30,638,517)
11,779,391 13,381,926
5 Financial Liabilities
As at 31 December, short term financial liabilities comprised the following:
31 December 2012 31 December 2011
Short term bank borrowings and short term
portion of long term bank borrowings 141,986,823
95,339,861
Financial lease liabilities, net 28,971,669 20,474,355
170,958,492 115,814,216
As at 31 December, long term financial liabilities comprised the following:
31 December 2012 31 December 2011
Long term bank borrowings 282,287,855 362,684,232
Financial lease liabilities, net 102,512,425 83,312,597
384,800,280 445,996,829
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
31
5 Financial liabilities (continued)
Bank borrowings
31 December 2012 the details of bank borrowings comprised the following:
Type Collateral Currency Maturity
31 December 2012
Face Value
31 December 2012
Carrying Value
Investment
Secured
USD 2019
7,048,058
7,048,058
Investment
Secured
USD 2014
8,913,000
8,913,000
Investment
Secured
USD 2018
320,696,928
320,696,928
Operating
Secured
USD 2013
3,565,200
3,565,200
Operating
Secured
MKD 2014
6,679,179
6,679,179
Investment
Secured
MKD 2016
1,957,222
1,957,222
Operating
Secured
MKD 2013
8,288,230
8,288,230
Operating
Secured
TL 2013
60,361,543
60,361,543
Operating
Secured
TL 2014
91,350
91,659
417,600,710 424,274,678
As at 31 December 2012, interest rates range between Libor+ 1.75% - 6.35% for USD denominated
bank borrowings, 5.5%-6.0% for MKD denominated bank borrowings and 0% - 9.0% TL
denominated bank borrowings.
As at 31 December 2012, repayment schedule of the long term bank borrowings of the Group is as
follows:
Years
Currency
Original Currency Amount
TL Amount
2014
USD 35,396,545 63,097,881
2015
USD 32,896,545 58,641,381
2016
USD 32,896,545 58,641,381
2017
USD 32,896,545 58,641,381
2018
USD 18,904,963 33,699,988
2019
USD 470,152 838,092
2014
MKD 109,510,801 4,188,098
2015
MKD 71,730,752 2,743,249
2016
MKD 44,583,925 1,705,054
2014
TL 91,350 91,350
282,287,855
As at 31 December 2012, the maturities of bank borrowings of the Group are as follows:
Maturity 31 December 2012
0 – 3 month 50,560,562
3 month – 1 year 91,426,261
1 – 5 year 247,749,775
Above 5 year 34,538,080
424,274,678
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
32
5 Financial liabilities (continued)
According to the USD 200,000,000 loan agreement with a commercial bank located in Turkey, the
Group has to meet certain covenant limits. As at 31 December 2012, the Group met its all covenants.
As at 31 December 2012, the guarantees given related to the bank borrowings are as follows:
31 December 2012
Type of Guarantee Currency Original Currency Amount TL Amount
Mortgages USD 163,515,000 291,481,839
Blocked deposit USD 1,008,780 1,798,251
Blocked deposit TL -- 27,639,600
Commercial Pledge TL -- 600,000,000
164,523,780 920,919,690
As at 31 December 2011, the details of bank borrowings comprised the following:
Type Collateral Currency Maturity
31 December 2011
Face Value
31 December 2011
Carrying Value
Investment
Secured
USD 2018
352,504,913
350,877,294
Investment
Secured
USD 2014
14,195,006
14,195,006
Investment
Secured
USD 2018
53,607,592
53,607,592
Operating
Secured
USD 2012
3,814,361
3,814,361
Investment
Secured
EUR 2012
3,886,050
3,874,450
Investment
Secured
EUR 2012
2,601,883
2,601,883
Investment
Secured
MKD 2016
15,981,905
15,981,905
Operating
Secured
MKD 2012
802,493
802,493
Operating
Secured
TL 2012
11,953,841
11,953,841
Tax
Unsecured
TL 2012
315,268
315,268
459,663,312 458,024,093
As at 31 December 2011, interest rates for rage between Libor+ %3.90 - %6.35 for USD
denominated borrowings; Euribor + 0.625% - 7.5% for EUR denominated bank borrowings, 5.5% -
9.75% for MKD denominated bank borrowings and 10.0% - 15.25% for TL denominated bank
borrowings.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
33
5 Financial Liabilities (continued)
As at 31 December 2011, repayment schedule of the long term bank borrowings of Group is as
follows:
Years Currency
Original Currency
Amount TL Amount
2013 USD 34,815,936 65,763,821
2014 USD 34,815,936 65,763,821
2015 USD 32,315,936 61,041,571
2016 USD 32,315,936 61,041,571
2017 USD 32,315,936 61,041,571
2018 USD 18,324,354 34,612,873
2013 MKD 105,302,901 4,240,647
2014 MKD 108,609,263 4,373,797
2015 MKD 82,558,019 3,324,689
2016 MKD 36,747,879 1,479,871
362,684,232
As at 31 December 2011, the maturities of bank borrowings are as follows:
As at 31 December 2011, the guarantees given related to the bank borrowings are as follows:
Type of Guarantee Currency Type Original Currency Amount TL Amount
Mortgages USD 164,865,000 311,413,499
Blocked Deposit USD 317,036 598,849
Blocked Deposit TL -- 30,039,668
Commercial Pledge TL -- 600,000,000
165,182,036 942,052,016
Finance lease liabilities:
As at 31 December, short term finance lease liabilities are as follows:
31 December 2012 31December 2011
Financial lease liabilities 35,564,643 25,638,695
Deferred financial lease liabilities (-) (6,592,974) (5,164,340)
28,971,669 20,474,355
Maturity 31 December 2011
0 - 3 month 36,021,899
3 month – 1 year 59,317,962
1 - 5 year 267,029,788
Above 5 year 95,654,444
458,024,093
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
34
5 Financial Liabilities (continued)
As at 31 December, long term finance lease liabilities are as follows:
31 December 2012 31 December 2011
Financial lease liabilities 115,183,812 94,505,526
Deferred financial lease liabilities (-) (12,671,387) (11,192,929)
102,512,425 83,312,597
As at 31 December, the maturities of finance lease liabilities are as follows:
2012 2011
Future
minimum
lease
payments Interest
Present value
of minimum
lease
payments
Future
minimum
lease
payments Interest
Present value
of minimum
lease
payments
Less than 1 year 35,564,643
6,592,974
28,971,669
25,638,695 5,164,340 20,474,355 1 - 5 year 107,309,469
12,098,184
95,211,285
80,980,612 10,133,149 70,847,463 5 year and more 7,874,343
573,203
7,301,140
13,524,914 1,059,780 12,465,134
150,748,455
19,264,361 131,484,094 120,144,221 16,357,269 103,786,952
6 Trade Receivables and Payables
31 December 2012 31 December 2011
Trade receivables 132,995,629 109,984,583
Notes receivables 805,943 667,815
Doubtful receivables 10,620,755 8,387,210
Allowance for doubtful receivables (-) (10,620,755) (8,387,210)
Other trade receivables 15,908 --
133,817,480 110,652,398
The Company has borrowed a loan amounting to USD 200,000,000 based on an agreement signed
with a commercial bank located in Turkey on 10 January 2008. The purpose of the loan was funding
new investments and the restructuring of existing loans at that time. The Company has ceded 80% of
the trade receivables as a guarantee for the remaining amount of bank loans of USD 154,000,000 of
the USD 200,000,000 loan.
As at 31 December, the aging analysis of the trade receivable is as follows:
31 December 2012 31 December 2011
Overdue receivables 47,806,668 15,248,945
Receivables not overdue 86,010,812 95,403,453
133,817,480 110,652,398
As at 31 December 2012, overdue receivables are amounting to TL 47,806,668 (31 December 2011:
TL 15,248,945). No allowance has been recorded for these receivables as they were found to be
overdue due to commercial reasons and were expected to be collected within a time period.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
35
The aging analysis of overdue trade receivable as at 31 December is as below:
31 December 2012
31 December 2011
Between 1-30 days 13,302,256
5,495,533
Between 31-60 days 13,755,819
2,728,839
61 days and more 20,748,593
7,024,573
47,806,668 15,248,945
The Group records allowance for doubtful receivable on customer terms. Allowances comprised the
customers which are not expected to repay. For the years ended 31 December, the movement of the
allowances for doubtful receivable is as follows:
31 December 2012
31 December 2011
Beginning balance 8,387,210
5,473,602
Additions 3,326,865
3,197,914
Collections (-) (1,093,320)
(283,163)
Write-offs (-) --
(1,143)
10,620,755 8,387,210
Group‘s impairment of trade and other receivables, credit and currency risk is explained in Note 27.
As at 31 December, short term trade payables comprised the following:
31 December 2012
31 December 2011
Payable to suppliers
91,403,616
114,274,994
Notes payable
10,529,820
8,760,622
101,933,436 123,035,616
As at 31 December, long term trade payables comprised the following:
31 December 2012
31 December 2011
Payable to suppliers
6,980,597
6,200,306
Notes Payable
--
2,199,420
6,980,597 8,399,726
As at 31 December, the aging analysis of trade payables is as follows:
31 December 2012
31 December 2011
0 - 3 month
69,282,436
92,091,592
3 month -1 year
32,651,000
30,944,024
1 year-5 year
6,980,597
8,399,726
108,914,033 131,435,342
Credit and currency risk the Group‘s trade and other payables exposed to are explained in Note 27.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
36
7 Other Receivables and Payables
As at 31 December, other short-term receivables comprised the following:
31 December 2012 31 December 2011
Orka Holding AD (*) 5,946,950 --
Receivables from tax office 597,434 450,202
Advances given to personnel 203,288 204,320
Deposits and guarantees given 190,403 181,773
Others 2,727,070 221,394
9,665,145 1,057,689
As at 31 December, other long-term receivables comprised the following:
31 December 2012 31 December 2011
Deposits and guarantees given 339,701 204,204
Orka Holding AD(*) -- 6,267,210
Receivables from personnel -- 396,289
Other 92,814 --
432,515 6,867,703
(*) Receivables from Orka Holding AD were classified as short term in accordance with payment plan.
As at 31 December, other short-term payables comprised the following:
31 December 2012 31 December 2011
Payables arising from acquisition of Yeni Sağlık 21,318,151 16,892,910
Payables arising from acquisition of Bodrum Tedavi 8,956,539 --
Advances received from patients 5,754,139 3,776,828
Other payables to Orka Holding AD 574,642 303,113
Other 360,708 431,763
36,964,179 21,404,614
As at 31 December, other long-term payables comprised the following:
31 December 2012 31 December 2011
Payables arising from acquisition of Yeni Sağlık 12,760,116 35.597.523
Advances received 839,048 1.262.865
13,599,164 36,860,388
8 Inventories
As at 31 December, inventories comprised the following:
31 December 2012
31 December 2011
Medical materials and medicine 24,248,218
20,612,271
Other inventories
491,244
1,328,438
Provision for inventories
--
(26,304)
24,739,462 21,914,405
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
37
9 Property and equipment
For the year ended 31 December 2012, the movements in property and equipment are as follows:
Cost Land Buildings Machinery and
equipments Vehicles Furniture
and fixture Leased assets Leasehold
improvements
Other
tangible
assets Construction
in progress Total
1 January 2012 33,780,497 183,902,854 331,527,154 5,081,893 89,481,542 121,502,629 206,297,243 2,070,761 29,568,931 1,003,213,504
Acquisition through business combination --
-- 1,113,310 885,301 1,196,439 -- 838,864 -- -- 4,033,914
Additions -- 7,029,402 25,252,408 956,283 6,102,553 44,084,470 19,379,865 -- 53,864,255 156,669,236
Disposals -- (12,524,365) (10,739,509) (1,696,639) (1,198,896) (126,469) (122,637) (16,118) (111,654) (26,536,287)
Translation difference -- (2,739) (884,552) (8,686) (140,903) (6,813) -- (75,874) -- (1,119,567)
Transfer(*) -- 26,788,064 10,174,448 192,348 10,056,481 18,302,876 14,226,617 21,687 (79,785,093) (22,572)
As at 31 December 2012 33,780,497 205,193,216 356,443,259 5,410,500 105,497,216 183,756,693 240,619,952 2,000,456 3,536,439 1,136,238,228
Accumulated depreciation
1 January 2012 -- 25,032,608 237,772,466 2,914,561 56,104,458 57,548,804 76,618,492 99,278 -- 456,090,667
Acquisition through
business combination -- 436,929 293,404 818,719 -- 197,825 -- -- 1,746,877
Charge for the year -- 4,593,429 26,632,524 734,962 10,190,360 23,721,783 20,829,549 9,518 -- 86,712,125
Disposals -- (3,032,907) (10,121,857) (1,313,829) (728,632) (30,958) (1,776) (16,118) -- (15,246,077)
Translation difference -- (12) (29,506) (1,202) (5,214) (2,323) (51,753) -- (90,010)
As at 31 December 2012 -- 26,593,118 254,690,556 2,627,896 66,379,691 81,237,306 97,644,090 40,925 -- 529,213,582
Net book value
607,024,646
(*) Fixed assets amounting to TL 22,572 TL have been transferred to intangible assets. As at 31 December 2012, property and equipment have been insured to the extent of TL 1,005,811,324 (31 December 2011: TL 974,520,407)
For the year ended 31 December 2012, depreciation expenses amounting to TL 84,011,357 (31 December 2011: TL 72,914,412) have been recognised under cost of revenue and TL 2,576,528 (31 December
2011: TL 3,913,307) has been included under administrative expenses and TL 124,240 (31 December 2011: TL 131,976) has been included under selling, marketing and distribution expenses.
As at 31 December 2012, property and equipment are pledged to the extent of TL 291,481,839 (31 December 2011: TL 311,413,499).
For the year ended 31 December 2012, the Company utilizes property and equipment which have nil net book value on its accounts (31 December 2012: TL 244,585,338, Accumulated Depreciation: TL 244,585,338; 31 December 2011 Cost: TL 226,783,910, Accumulated Depreciation: TL 226,783,910).
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in Turkish Lira (“TL”) unless otherwise stated.
38
9 Property and equipment (continued)
For the period ended 31 December 2011, the movements in property and equipment are as follows:
Cost Land Buildings Machinery and
equipments Vehicles Furniture
and fixture Leased assets Leasehold
improvements
Other
tangible
assets Construction
in progress Total
1 January 2011 31,645,702 181,523,816 294,741,728 4,388,225 77,213,252 117,483,640 202,253,250 563,536 2,249,366 912,062,515
Acquisition through
business combination -- 38,428 14,642,780 143,806 2,304,409 112,794
--
1,256,204
18,498,421
Additions 2,134,795 2,340,610 24,608,622 869,108 10,485,130 3,906,195 19,940,632 251,021 27,319,565 91,855,678
Disposals -- -- (2,465,976) (319,246) (521,249) -- (15,896,639) -- -- (19,203,110)
As at 31 December 2011 33,780,497 183,902,854 331,527,154 5,081,893 89,481,542 121,502,629
206,297,243
2,070,761
29,568,931
1,003,213,504
Accumulated depreciation
1 January 2011 -- 20,841,603 215,476,593 2,373,310 48,112,446 36,076,951 62,016,019 78,917 -- 384,975,839
Acquisition through
business combination -- -- -- 17,598 6,039 20,444
--
--
44,081
Charge for the year -- 4,191,005 24,374,345 745,800 8,476,399 21,451,409 17,700,376 20,361 -- 76,959,695
Disposals -- -- (2,078,472) (222,147) (490,426) -- (3,097,903) -- -- (5,888,948)
As at 31 December 2011 -- 25,032,608 237,772,466 2,914,561 56,104,458 57,548,804
76,618,492
99,278
--
456,090,667
Net Book Value
547,122,837
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
39
9 Property and equipment (continued)
Construction in progress
31 December 2012
Project Actual Cost Expected Project
Costs (TL)
Acıbadem Bodrum Hospital (2nd phase) 2,730,564 15,000,000
Acıbadem Halkalı Hospital 514,630 95,000,000
Acıbadem Altunizade Hospital 291,245 180,000,000
3,536,439 290,000,000
Acıbadem Bodrum Hospital (2.stage)
Acıbadem Sağlık has an expansion project for Bodrum Hospital building which is planned to be
completed in 2013.
Acıbadem Halkalı Hospital
Acıbadem Sağlık has a hospital project which is located in Halkalı with a total closed area of 55.000 m2.
This project is planned to be completed in last quarter of 2013.
Acıbadem Altunizade Hospital
Acıbadem Sağlık has a hospital project, which is located in Altunizade with a total closed area of 75.000
m2. This project is planned to be completed in 2015.
10 Intangible Assets
For the year ended 31 December 2012, movements in the intangible assets are as follows:
Rights
Other intangible
assets Total
Cost
1 January 2012 5,386,681 7,528,100 12,914,781
Acquisition through business combination 5,830,155 -- 5,830,155
Additions 7,959,406 731,821 8,691,227
Disposals (7,460) (23) (7,483)
Effects of movements in exchange rates -- (137,531) (137,531)
Transfers 4,055 18,517 22,572
31 December 2012 19,172,837 8,140,883 27,313,721
Accumulated Amortization
1 January 2012 1,642,315 3,822,993 5,465,308
Acquisition through business combination 75,017 -- 75,017
Charge for the year 480,237 391,124 871,361
Disposals -- (23) (23)
Effects of movements in exchange rates -- (1,878) (1,878)
31 December 2012 2,197,569 4,212,216 6,409,785
Net Book Value 20,903,396
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
40
10 Intangible assets (continued)
Details of the license obtained through the acquisition of Turuncu Sağlık which is recognized under rights
is summarized below:
Consideration transferred 4,997,751
Net Book Value 4,997,751
For the year ended 31 December 2011, movements in the intangible assets are as follows:
Rights Other intangible assets Total
Cost
1 January 2011 2,428,831 5,424,893 7,853,724
Acquisition from business combination 36,867 414,728 451,595
Additions 2,921,783 1,694,479 4,616,262
Disposals (800) (6,000) (6,800)
31 December 2011 5,386,681 7,528,100 12,914,781
Accumulated Amortization
1 January 2011 1,353,963 3,455,903 4,809,866
Acquisition from business combination -- 1,474 1,474
Charge for the year 288,396 365,716 654,112
Disposals (44) (100) (144)
31 December 2011 1,642,315 3,822,993 5,465,308
Net Book Value 7,449,473
For the year ended 31 December 2012, amortization expenses amounting to TL 871,361 (31 December
2011: TL 654,112) have been included in administrative expenses.
As at 31 December, Acıbadem Sağlık utilizes intangible assets which have nil net book value on its
accounts (31 December 2012 Cost: TL 4,561,696, Accumulated Amortization: TL 4,561,696; 31
December 2011 Cost: TL 4,062,829, Accumulated Amortization: TL 4,062,829).
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
41
11 Goodwill
As at 31 December, the goodwill was recognized as a result of the acquisitions shown below:
31 December
2012 31 December
2011
Acıbadem Sistina Hospital and Medikal 50,441,981 50,441,981
Yeni Sağlık 46,417,257 46,417,257
International Hospital 39,292,955 39,292,955
Bodrum Tedavi Hizmetleri 7,200,000 --
Medlife 7,684,264 --
Bodrum Medikal 5,507,482 --
Acıbadem Poliklinikleri 6,234,605 6,234,605
Tolga Sağlık 2,686,849 --
Sesu 2,520,969 --
Konur Sağlık 1,547,107 1,547,107
Özel Turgutreis 92,769 --
Blab 33,747 --
169,659,985 143,933,905
The details of the acquisitions in year 2012 are given below:
Acıbadem Orta Doğu
Acıbadem Sağlık along with its subsidiaries (Mobil, Acıbadem Poliklinikleri and Labmed) took over the
90% shares of unconsolidated related party on 14 May 2012. At the General Assembly of Acıbadem Diş
Sağlığı Hizmetleri A.Ş. held on 28 May 2012, it was resolved that the company name would be changed
as Acıbadem Orta Doğu Sağlık Yatırımları A.Ş. Acıbadem Ortadoğu ‗s core business is to design, realize
domestic and international construction projects, even the investment for those projects. The Group‘s
effective share is 90%. The detail of bargain purchase gain computed is as follows:
Consideration transferred 482.178
Subsidiaries net book value (90%) (483.647)
Bargain purchase gain (1.469)
Bodrum Tedavi Hizmetleri
On 7 August 2012, Acıbadem Poliklinikleri, a subsidiary of the Group, acquired 60.00% of Bodrum
Tedavi by a total consideration of TL 18,075,000. Accordingly, the goodwill has been computed on the
total net asset of the Bodrum Tedavi Hizmetleri. The detail of goodwill computed is as follows:
Consideration transferred 18.075.000
Subsidiaries net book value (60.00%) (10.875.000)
Goodwill 7.200.000
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
42
11 Goodwill (continued)
Medlife
On 7 August 2012, Bodrum Tedavi, a subsidiary of the Acıbadem Poliklinikleri, acquired 100.00% of
Medlife by a total consideration of TL 8,269,667. Accordingly, the goodwill has been computed on the
total net asset of the Medlife. The detail of goodwill computed is as follows:
Consideration transferred 8,269,667
Subsidiaries net book value (100.00%) (585,403)
Goodwill 7,684,264
Bodrum Medikal
Bodrum Tedavi Hizmetleri, subsidiary of Acibadem Poliklinikleri, acquired 100 % shares of Bodrum
Medikal on 07 August 2012. Details of goodwill recorded in the accompanying consolidated financial
statements for Bodrum Medikal are stated below:
Consideration transferred 6,831,670
Subsidiaries net book value (100.00 %) (1,324,188)
Goodwill 5,507,482
Sesu
Bodrum Tedavi Hizmetleri, subsidiary of Acibadem Poliklinikleri, acquired 99,71 % shares of Sesu Özel
Sağlık Hizmetleri on 07 August 2012. Details of goodwill recorded in the accompanying consolidated
financial statements for Sesu Özel Sağlık Hizmetleri are stated below:
Consideration transferred 2,716,793
Subsidiaries net book value (99.71%) (195,824)
Goodwill 2,520,969
Özel Turgutreis
Bodrum Tedavi Hizmetleri, subsidiary of Acibadem Poliklinikleri, acquired 99,99 % shares of Özel
Turgutreis on 07 August 2012. Details of goodwill recorded in the accompanying consolidated financial
statements for Özel Turgutreis are stated below:
Consideration transferred 99,577
Subsidiaries net book value (99.99 %) (6,808)
Goodwill 92,769
BLAB
The Group acquired 100 % of Blab Laboratuvar Hizmetleri on 14 December 2012. Details of goodwill
recorded in the accompanying consolidated financial statements for Blab Laboratuvar Hizmetleri are
stated below:
Consideration transferred 1,400,000
Subsidiaries net book value (100.00 %) (1,366,253)
Goodwill 33,747
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
43
11 Goodwill (continued)
Tolga Sağlık
On 1 December 2012, Acıbadem Sağlık, a subsidiary of the Group, acquired 100.00% of Tolga Sağlık by
a total consideration of TL 2,671,500. Accordingly, the goodwill has been computed on the total net asset
of Tolga Sağlık. The detail of goodwill computed is as follows:
Consideration transferred 2,671,500
Subsidiaries net book value (100.00 %) 15,349
Goodwill 2,686,849
Acquisition of non controlling interests without a change in control:
Konur Sağlık
Acıbadem Poliklinikleri, one of the subsidiaries of the Group, acquired 2,5% of the remaining shares
from third parties based on the board resolution on 02 March 2012 and 5% of the remaining shares based
on the board resolution on 20 December 2012 and increased its shares to 100% as of that date. The agreed
amounts for these acquisitions are TL 117,707 and TL 265,815 respectively. The difference arising from
acquisition of additional shares is presented under ―Retained Earnings‖ in accordance with the revised
provisions of IFRS 3.
Consideration transferred 383,522
Subsidiaries net book value (additional %2.5 share) (39,949)
Subsidiaries net book value (additional %5 share) (105,443)
Amount recorded in Accumulated Losses 238,130
Gemtıp
Konur Sağlık, one of the subsidiaries of the Group, acquired 10% of the remaining shares from third
parties based on the board resolution on 1 December 2012 and increased its shares to 68% as of that date.
The agreed amount for this acquisition is TL 30,000. The difference arising from acquisition of additional
shares is presented under ―Retained Losses‖ in accordance with the revised provisions of IFRS 3.
Consideration transferred 30,000
Subsidiaries net book value (additional %10 share) (25,000)
Amount recorded in Accumulated Losses 5,000
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
44
11 Goodwill (continued)
Impairment testing for cash-generating units containing goodwill1
For the purpose of impairment testing, goodwill is allocated to Group‘s four cash generating units
(―CGU‖) namely Acıbadem Sistina, International, Yeni Sağlık and Acıbadem Poliklinikleri. All CGU‘s
impairment tests were based on value in use in as at 31 December 2012 which was estimated using
discounted cash flow projections.
5 year business plan prepared by the management was used in the value in use analysis of CGUs. The
growth in business plan of is driven by the opportunities in companies‘ businesses, increase in patient
volume and opening of new Acıbadem hospitals.
As a result of the impairment testing performed on CGU basis, no impairment loss was recognised as at
31 December 2012.
Key assumptions used in Discounted Cash Flow Projections
Key assumptions used in calculation of recoverable amounts are discount rates and terminal growth rates.
These assumptions are as follows:
Discount Rate
Terminal
Growth Rate
Compound annual
EBITDA Growth
Rate Acıbadem Sistina %10,6 %5 14%
International %12,2 %5 5%
Yeni Sağlık %12,2 %5 26%
Acıbadem Poliklinikleri %12,2 %5 14%
EBITDA growth rates were determined based on the following:
Revenue growth was estimated based on the growth during 2012 for the first year of projection period. In
addition, historical growth rates and impact of new investments was considered regarding the cash flows
between the years 2013-2017. Prices are estimated to increase in line with the inflation rate.
For the goodwill impairment test of companies acquired close to the end of 2012, the Company evaluated
in respect to the acquisition date values and any changes from the acquisition through the end of the year.
There was no indication of impairment for the entities acquired during 2012.
Discount Rate
The discount rates used in discounted cash flows are the weighted average cost of capital (―WACC‖) of
the companies.
Terminal growth rates for all companies are determined as 5%. Due to the different cost of equity and
cost of debt of Acıbadem Sistina, the discount rate is determined as 10.6%.
12 Provisions
As at 31 December, provisions comprised the following:
31 December 2012 31 December 2011
Provision for doctor payments 48,944,435 18,587,294
Lawsuit provisions 6,084,343 4,816,801
Provision for miscellaneous expenses 164,275 101,493
Accruals for inventories 452,905 146,294
Other 1,130,323 513,541
56,776,281 24,165,423
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
45
12 Provisions (continued)
There are 130 lawsuits (31 December 2011: 95) against the Group amounting to TL 19,936,844 (31
December 2011: TL 17,560,461) and 172 lawsuits related to personnel (31 December 2011: 164)
amounting to TL 2,392,794 (31 December 2011: TL 951,933). The Group has provided provisions in the
amount of TL 6,084,343 (31 December 2010: TL 4,816,801) for the lawsuits in the accompanying
consolidated financial statements.
The movement of provisions for year ended 31 December 2012 is as follows:
1 January
2012 Additions Payments Reversals 31 December
2012
Provision for
doctor payments 18,587,294 48,944,435 (18,587,294) -- 48,944,435
Lawsuit
provisions 4,816,801 2,410,176 (426,290) (716,344) 6,084,343
Expense accruals 101,493 164,275 (101,493) -- 164,275
Accruals for
inventory 146,294 452,905 (146,294) -- 452,905
Others 513,541 1,130,323 (513,541) -- 1,130,323
24,165,423 53,102,114 (19,774,912) (716,344) 56,776,281
The movement of provisions for year ended 31 December 2011 is as follows:
1 January
2011 Additions
Payments
Reversals
31 December
2011 Provision for doctor
payments
13,564,343
18,587,294
(13,564,343)
--
18,587,294
Lawsuit provisions 3,677,494
1,344,109 (12,750)
(192,052)
4,816,801
Expense accruals 264,311
101,493
(264,311)
--
101,493
Accruals for
inventories 107,224
146,294
(107,224)
--
146,294
Consultancy
provisions 669,953
--
(669,953)
--
--
Other 1,451,081
513,541 (1,451,081)
--
513,541
19,734,406
20,692,731
(16,069,662) (192,052) 24,165,423
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
46
13 Commitments
According to the decision 28/780 of CMB on 9 September 2009 related to the commitments of publicly
owned companies given to the guarantee third party‘s debts;
The commitments given;
i) For their own corporate identities,
ii) In favor of consolidated subsidiaries,
iii) In favor of third parties to continue their operations will not be limited.
After the decision is published at the Public Disclosure Platform, publicly owned companies will not give
commitments to real people or corporations other than mentioned at the bullets (i) and (ii) above or to
third parties other than mentioned at the bullet (iii). If any commitments are already given they will be
reduced to nil until 31 December 2014.
As at 31 December 2012, commitments given are as follows:
31 December 2012
TL
Equivalent TL USD
A Commitments given on behalf of own corporate identities 908,567,322 615,302,883 164,515,000
B Commitments given on behalf of consolidated
subsidiaries
61,110,023 41,314,250 11,105,000
C Commitments given on behalf of third parties to continue
its operations
-- -- --
D Other commitments given 4,358,670 4,270,000 50,000
- on behalf of parent company
- on behalf of group companies other than mentioned in
bullets B and C
4,358,670 4,270,000 50,000
- on behalf of third parties other than mentioned in bullet C -- -- --
Total 974,036,015 660,887,133 175,670,000
31 December 2011
TL
Equivalent TL USD
A Commitments given on behalf of own corporate identities 955,733,902 643,721,555 165,182,036
B Commitments given on behalf of consolidated
subsidiaries
39,503,795 22,494,250 9,005,000
C Commitments given on behalf of third parties to continue
its operations
-- -- --
D Other commitments given 1,564,445 1,470,000 50,000
- on behalf of parent company
- on behalf of group companies other than mentioned in
bullets B and C
1,564,445 1,470,000 50,000
- on behalf of third parties other than mentioned in bullet C -- -- --
Total 996,802,142 667,685,805 174,237,036
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
47
13 Commitments (continued)
The total value of mortgages and pledges on the Group‘s land and buildings are as follows:
Mortgages
Collateral Type
Duration
Cause of collateral and place
Pledged asset
31 December
2012 (USD)
Mortgage 1st degree
Relevance of the mortgage
Loan Collateral
Acıbadem Bursa Hospital
77.000.000
Mortgage 1st degree
Relevance of the
mortgage
Loan Collateral
Acıbadem Küçükyalı building
12.000.000
Mortgage 1st degree
Relevance of the
mortgage
Loan Collateral
Acıbadem Kozyatağı warehouse
2.000.000
Mortgage 1st degree
Relevance of the
mortgage
Loan Collateral
Acıbadem Adana Hospital
24.000.000
Mortgage 1st degree
Relevance of the mortgage
Loan Collateral
International Hospital
32.000.000
Mortgage 1st degree
Relevance of the
mortgage
Loan Collateral
Erkan Apt. various flats and
apartments
1.820.000
Mortgage 1st degree
Relevance of the
mortgage
Loan Collateral
Manolya Apt. No: 2-3
1.695.000
Mortgage 1st degree
Relevance of the mortgage
Loan Collateral
Acıbadem Kayseri Hospital
13.000.000
163.515.000
Collateral Type
Duration
Cause of collateral and place
Pledged asset
31 December
2011 (USD)
Mortgage 1st degree
Relevance of the
mortgage
Loan Collateral
Acıbadem Bursa Hospital
77,000,000
Mortgage 1st degree
Relevance of the
mortgage
Loan Collateral
Acıbadem Küçükyalı building
12,000,000
Mortgage 1st degree
Relevance of the
mortgage
Loan Collateral
Acıbadem Kozyatağı warehouse
2,000,000
Mortgage 1st degree
Relevance of the
mortgage
Loan Collateral
Acıbadem Adana Hospital
24,000,000
Mortgage 2nd degree
Relevance of the
mortgage
Loan Collateral
Cumhuriyetköy Acıbadem Eğitim
ve Sosyal Tesisleri
1,350,000
Mortgage 1st degree
Relevance of the mortgage
Loan Collateral
International Hospital
32,000,000
Mortgage 1st degree
Relevance of the
mortgage
Loan Collateral
Erkan Apt. various flats and
apartments
1,820,000
Mortgage 1st degree
Relevance of the
mortgage
Loan Collateral
Manolya Apt. No: 2-3
1,695,000
Mortgage 1st degree
Relevance of the mortgage
Loan Collateral
Acıbadem Kayseri Hospital
13,000,000
164,865,000
Pledges and commitments that are currently placed on Group‘s assets are listed as below:
Pledges
The Group ceded 80% of account receivable and blockage on the bank deposit amounting to TL
30,845,163 related with the long term bank borrowings from a commercial bank located in Turkey. In
accordance with the provisions of loan agreement, there is a first degree share pledge on Almond
Holding‘s 91.97% shares in Acıbadem Sağlık. Besides, %90,00 share of International Hospital has been
pledged at first degree, %49,99 share of Labmed has been pledged at first degree, 99,99% share of
Acıbadem Poliklinikleri has been pledged at first degree regarding the loans obtained from banks.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
48
13 Commitments (continued)
Annotations
There is a decision which was given by the Bakırköy Municipality to demolish the supplement of
International Hospital building. On the same property there are two annotations of 99 yearly rent
statements in favor of (―TEIAS‖) and in favor of Turkish Electricity Distribution A.Ş. (―TEDAS‖).
Additionally, there are two annotations of 99 yearly rent statements in favor of Istanbul Public
Transportation Administration (―IETT‖) and also two annotations in favor of Istanbul Metropolitan
Municipality on the Avcılar land.
Total amount of letter of guarantees that the Group provided to different institutions is TL 15,302,883 and
USD 1,782,600 (31 December 2011: TL 13,681,887).
14 Employee benefits Reserve for Employment Termination Benefits Under the Turkish Labor Law, the Company and its subsidiaries are required to pay termination benefits
to each employee who has completed one year of service and whose employment is terminated without
due cause, is called up for military service, dies or who retires after completing 25 years of service (20
years for women) and reaches the retirement age (58 for women and 60 for men).
The termination benefits is calculated as one month gross salary for every employment year and as at 31
December 2012 the ceiling amount has been limited to TL 3,034 (31 December 2011: TL 2,732).
Termination benefits is computed and reflected in the financial statements on a current basis. The reserve
has been calculated by estimating the present value of future probable obligation of the Company and its
Turkish subsidiaries and joint ventures arising from the retirement of the employees. The calculation was
based upon the retirement pay ceiling announced by the government.
The provision has been calculated by estimating the present value of the future probable obligation of the
Company and its subsidiaries arising from the retirement of employees. IFRSs require actuarial valuation
methods to be developed to estimate the Group‘s obligation. Accordingly, the following actuarial
assumptions were used in the calculation of the total liability:
The principal assumption is that the maximum liability for each year of service will increase in line with
inflation. Thus, the discount rate applied represents the expected real interest rate after adjusting for the
anticipated effects of future inflation. Consequently, in the accompanying consolidated financial
statements as at 31 December 2012, the provision has been calculated by estimating the present value of
the future probable obligation of the Group arising from the retirement of the employees. The provision at
31 December 2012 has been calculated assuming an annual inflation rate of 5,10 % and a discount rate of
8 % resulting in a real discount rate of approximately 2.76 % (31 December 2011: annual inflation rate of
5 % and a discount rate of 9.11 % resulting in a real discount rate of approximately 3.91 %).
31 December 2012
31 December 2011
Opening Balance 1,933,424 2,111,563
Additions through acquisition of subsidiaries 51,933 --
Interest 124,565 134,998
Cost of Services 276,908 238,260
Payments made during the period (5,372,618) (3,003,714)
Actuarial gains / (losses) 5,292,869 2,452,317
2,307,081 1,933,424
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
49
14 Employee benefits (continued) Actuarial gains or losses arise from the changes in interest rates and changes in expectations about the
salary increases. Actuarial differences are recorded as incurred. As at 31 December 2012, TL 5,349,849 of
interest cost, cost of services and actuarial gains or losses are recorded as cost of revenues (31 December
2011: TL 2,472,308), TL 316,871 is recorded as general administrative expenses (31 December 2011: TL
350,498) and TL 79,510 is recorded as selling, marketing and distribution expenses (31 December 2011:
TL 2,769).
15 Post Employee benefits
None.
16 Other assets and liabilities
As at 31 December, other current assets comprised the following:
31 December 2012 31 December 2011
Income accrual for inpatients 16,349,663 9,246,138
Income accrual for SGK receivables 15,482,205 13,841,917
VAT receivable 4,503,512 1,637,723
Prepaid insurance expense 4,355,228 4,774,805
Advances given to personnel 2,955,266 2,250,869
Advances given for inventory 2,637,768 1,657,567
Prepaid advertisement expenses 2,019,190 235,428
Prepaid rent expenses 1,837,292 5,768,133
Others 604,294 430,977
Prepaid taxes and funds 326,933 4,266,845
Prepaid maintenance expense 202,103 167,840
51,273,454 44,278,242
As at 31 December, other non-current assets comprised the following:
31 December 2012 31 December 2011
Prepaid rent 10,216,745 9,965,137
Advances given 3,390,658 2,695,987
Prepaid insurance expense 1,737,634 --
Other prepaid expenses 87,434 15,011
Advances given for fixed assets (*) -- 2,314,227
15.432.471 14.990.362
(*) The balance comprises of advances given for equipments of ongoing hospital development projects.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
50
16 Other assets and liabilities
As at 31 December, other current liabilities comprised the following:
31 December 2012 31 December 2011
Social security and taxes payable 18.654.671 23.796.898
Payable to personnel 15.500.075 14.208.151
Deferred income (*) 1.616.485 1.520.009
Other 102.178 --
35.873.409 39.525.058
(*)This amount consists of short term portion of income according to the bank agreement related to
assignment of salary payment rights.
As at 31 December 2012, other long term liabilities amounting to TL 3,310,381 (31 December 2011: TL
4,938,537) consists the income according to the bank agreement related to assignment of salary payment
rights.
17 Equity
Paid-in capital
As of 31 December 2012, Group‘s paid-in-capital is TL 100,000,000 (31 December 2011: TL
100,000,000) and is divided into 100.000.000 shares with par value of 1 TL each. (31 December 2011:
100.000.000 shares). As at 31 December, the composition of shareholders and their respective percentage
of ownership are summarized as follows: 31 December 2012 31 December 2011
Name of the shareholder Share (%) Amount Share (%) Amount
Mehmet Ali Aydınlar(*) 0.03 30,001 0,40 395,826
Hatice Seher Aydınlar 0.00 1 0,00 1
Almond Holding Anonim Şirketi 98.65 98,653,016 91,97 91,969,122
Other individuals 1.19 1,187,674 5,52 5,521,272
Publicly owned shares 0.13 129,308 2,11 2,113,779
100.00 100,000,000 100,00 100,000,000
(*)Mehmet Ali Aydınlar is the Chairman and the CEO of Almond Holding A.Ş.
Series Type Registered/Bearer Nominal Value (TL) Privilege
3, 4, 5 A Registered (Almond Holding A.Ş.) 4,249,973 Right to nominate
board members,
right to vote
3, 4, 5 B Bearer 95,750,027 --
The favorable vote of Group A shares is required in order to increase in share capital. Group A
shareholder has the right to nominate four out of five board members, and Group B shareholders has the
right to nominate one out of five board members. Each Group A share has 100 votes against one vote of
Group B shareholders
The registered share capital of the Company is TL 250,000,000. Capital Market Board approved the
registered share capital system with the permission dated 9 August 2001 and numbered 37/1033
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
51
17 Equity (continued)
Pledges on Shares
According to the Share Pledge Agreements amounted 200,000,000 USD which are signed on 10 January
2008 and additional amendments of the agreements which are signed on 6 February 2008 and 6 August
2008, the shares of, Acıbadem Sağlık owned by Almond Holding and shares of certain subsidiaries of
Acıbadem Sağlık were pledged (1st degree) on behalf of a commercial bank located in Turkey as the
guarantee of the loan.
Reserves
Legal reserves:
The legal reserves consist of first and second legal reserves in accordance to the Turkish Commercial
Code (―TCC‖). The first legal reserves are generated by annual appropriations amounting to 5 percent of
income disclosed in the Company‘s statutory accounts until it reaches 20 percent of paid-in share capital.
If the dividend distribution is made in accordance with CMB regulations, a further 1/10 of dividend
distributions, in excess of 5 percent of paid-in capital is to be appropriated to increase second legal
reserves. If the dividend distribution is made in accordance with statutory records, a further 1/11 of
dividend distributions, in excess of 5 percent of paid-in capitals are to be appropriated to increase second
legal reserves. Under the TCC, the legal reserves can be used only to offset losses and are not available
for any other usage unless they exceed 50 percent of paid-in capital. As at 31 December 2012, the
Group‘s legal reserves amounting to TL 9,679,133 (31 December 2011: TL 8,448,697).
Dividend distribution: According to the general assembly of shareholders held on 29 June 2012, the Company decided not to
distribute any dividend due to loss occurred in 2011. There is no requirement for profit distribution in
year 2011 for the Company, meanwhile the company decided to distribute dividends for three consecutive
years starting from 2011 in accordance with the announced dividend distribution policy.
Retained Earnings / (Accumulated Losses)
31 December 2012
31 December 2011
Extraordinary reserves 55,218,612 55,548,253
Retained earnings / (Accumulated losses) (47,802,661) (39,391,183)
7,415,951 16,157,070
In accordance with IAS 29, amounts exist during the initial reconciliation of financial statements adjusted
for inflation and recorded on ―retained earnings‖ shall be considered as a discount item for distribution of
profits based on inflation adjusted financial statements in accordance with CMB‘s regulations around
distribution of profits. In addition, this respective amount maintained under ―retained earnings‖, current
period profit if any and undistributed prior period earnings could be offset against the reserve balances
arising from the inflation adjustment of extraordinary reserves, legal reserves and capital amounts
The movement of retained earnings / (accumulated losses) is as follows:
31 December 2012
31 December 2011
Opening balance 16.157.070 7.176.607
Transfer to legal reserves (1.230.436) --
Change in non-controlling interest (243.130) (1.104.005)
Transfer from net income for the year (7.267.533) 10.084.468
7.415.951 16.157.070
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
52
18 Revenues and Cost of Revenues
For the years ended 31 December, revenues and cost of revenues comprised the following:
2012 2011
Gross Sales 1,358,769,593 1,103,602,305
Unearned finance expense (-) (4,677,917) (4,675,533)
Sales returns and discounts (-) (93,399,153) (89,450,304)
Net revenues 1,260,830,322 1,009,476,468
Cost of revenues (-) (1,046,043,779) (793,348,551)
Gross Profit 214,786,544 216,127,917
19 Selling, marketing and distribution expenses, general administrative expenses
Selling, marketing and distribution expenses
For the years ended 31 December, selling, marketing and distribution expenses comprised the following:
2012 2011
Advertisement and sponsorship expenses 15,129,131 15,142,285
Personnel expenses 8,491,008 5,863,774
Commission expenses 4,275,873 4,808,372
Representation expenses 2,208,277 1,006,434
Published material expenses 1,080,618 846,792
Travel expenses 982,299 751,177
Communication expenses 309,752 219,816
Others 2,837,923 2,154,936
35,314,881 30,793,586
General administrative expenses
For the years ended 31 December, general administrative expenses comprised the following:
2012 2011
Personnel expenses 35,285,662 29,644,347
Depreciation and amortization 3,447,889 4,567,419
Consultancy, legal and notary expenses 3,163,535 1,913,810
Communication and other office expenses 2,731,057 1,330,273
Rent expense 2,078,168 1,754,713
Representation and travel expenses 1,907,572 839,228
Cleaning and catering expenses 1,709,673 1,474,402
Energy and heating expenses 1,237,980 964,961
Repair and maintenance expenses 1,015,731 751,999
Others 5,192,038 2,071,180
57,769,305 45,312,332
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
53
20 Expenses by nature
For the years ended 31 December, expenses by nature comprised the following:
Amortization and depreciation expenses 2012
2011 Cost of sales 84,011,357 72,914,412
General administrative expenses 3,447,889 4,567,419
Selling, marketing and distribution expenses 124,240 131,976
87,583,486
77,613,807
Personnel expenses 2012 2011
Cost of sales 569,067,584
439,083,715
General administrative expenses 35,285,662
29,644,347
Selling, marketing and distribution expenses 8,491,008
5,863,774
612,844,254 474,591,836
21 Other operating income and expenses
For the years ended 31 December, other operating income comprised the following:
2012 2011
Insurance compensation gain 5,911,321 3,810,569
Rental income 3,360,858 2,237,771
Premium from bank related salary payment right assignment (*) 1,456,568 699,433
Recovery of impairment for doubtful receivables 1,093,320 283,163
Gain on sale of property and equipment -- 269,789
Other income 2,573,350 852,162
14,395,417
8,152,887
(*)The premium arose from assignment of the salary payment rights as a result of an agreement with a
commercial bank located in Turkey.
For the years ended 31 December, other operating expense comprised the following:
2012 2011
Loss on sale of property and equipment 5,688,987 --
Damage loss 4,566,920 5,788,104
Allowance for doubtful receivables 3,326,865 3,197,914
Provision for lawsuits 1,267,542 1,139,307
Donations 3,755,614 10,658,556
Tax expenses regarding law number 6111 -- 405,822
Other expense 74,404 1,685,464
18,680,332 22,875,167
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
54
22 Financial income For the years ended 31 December, financial income comprised the following:
2012 2011 Foreign exchange gain 33,310,152 --
Imputed interest on cost of revenue 4,739,261 5,710,082
Discount on trade payables 1,452,920 1,455,549
Interest income on time deposits 1,694,207 1,203,181
Net change in fair value of derivatives -- 7,663,242
Others 129,453 41,273
41,325,993 16,073,327
23 Financial expenses For the years ended 31 December, financial expenses comprised the following:
2012 2011
Foreign exchange loss -- 104,876,198
Interest expense on bank loans 26,522,814 21,409,906 Change in fair value of derivatives 10,209,458 5,211,751 Credit card commission expenses 7,705,956 5,196,785 Interest expense on leases 6,191,453 2,028,041 Imputed interest on revenue 3,190,302 1,726,086 Letter of credit and other bank commission expenses 1,115,214 1,772,206 Others 326,394 195,279 55,261,591 142,416,252
24 Tax assets and liabilities Corporate income tax
Corporate tax is applied on taxable corporate income, which is calculated from the statutory accounting
profit by adding non-deductible expenses, and by deducting dividends received from resident companies,
other exempt income and investment incentives utilized. Corporate income tax rate at 31 December 2012
is 20%.
There is also a withholding tax on the dividends paid and is accrued only at the time of such payments.
The withholding tax rate on the dividend payments other than the ones paid to the non-resident
institutions generating income in Turkey through their operations or permanent representatives and the
resident institutions is 15 percent. In applying the withholding tax rates on dividend payments to the non-
resident institutions and the individuals, the withholding tax rates covered in the related Double Tax
Treaty Agreements are taken into account. Appropriation of retained earnings to capital is not considered
as profit distribution and therefore is not subject to withholding tax.
According to the Corporate Tax Law, 75 percent of the capital gains arising from the sale of property and
equipment and investments owned for at least two years are exempted from corporate tax on the condition
that such gains are reflected in equity from the date of the sale. The remaining 25 percent of such capital
gains are subject to corporate tax.
The transfer pricing law is covered under Article 13 ―disguised profit distribution via transfer pricing‖ of
the Corporate Tax Law. The General Communiqué on disguised profit distribution via transfer pricing
dated 18 November 2007 sets details about implementation. If a tax payer enters into transactions
regarding sale or purchase of goods and services with related parties, where the prices are not set in
accordance with arm‘s length basis, then related profits are considered to be distributed in a disguised
manner through transfer pricing. Such disguised profit distributions through transfer pricing are not
accepted as a tax deductable for corporate income tax purposes.
In Turkey, the tax legislation does not permit a parent company and its subsidiaries to file a consolidated
tax return. Therefore, provision for taxes shown in the consolidated financial statements reflects the total
amount of taxes calculated on each entity that are included in the consolidation.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
55
24 Tax assets and liabilities (continued)
Corporate income tax (continued)
Under the Turkish taxation system, tax losses can be carried forward to be offset against future taxable
income for up to five years. Tax losses cannot be carried back.
In Turkey, there is no procedure for a final and definitive agreement on tax assessments. Companies file
their tax returns within four months following the close of the accounting year to which they relate. Tax
returns are open for five years from the beginning of the year that follows the date of filing during which
time the tax authorities have the right to audit tax returns, and the related accounting records on which
they are based, and may issue re-assessments based on their findings.
Investment allowance
The Temporary Article 69 added to the Income Tax Law no.193 with the Law no.5479, which became
effective starting from 1 January 2006, upon being promulgated in the Official Gazette no.26133 dated 8
April 2006, stating that taxpayers can deduct the amount of the investment allowance exemption which
they are entitled to according to legislative provisions effective at 31 December 2005 (including rulings
on the tax rate) only from the taxable income of 2006, 2007 and 2008. Accordingly, the investment
incentive allowance practice was ended as of 1 January 2006. At this perspective, an investment
allowance which cannot be deducted partially or fully in three years time was not allowed to be carried
forward to the following years and became unavailable as of 31 December 2008. On the other side, the
Article 19 of the Income Tax Law was annulled and the investment allowance practice was ended as of 1
January 2006 with effectiveness of the Article 2 and the Article 15 of the Law no.5479 and the investment
allowance rights on the investment expenditures incurred during the period of 1 January 2006 and 8 April
2006 became unavailable.
However, at 15 October 2009, the Turkish Constitutional Court decided to cancel the clause no.2 of the
Article 15 of the Law no.5479 and the expressions of ―2006, 2007, 2008‖ in the Temporary Article 69
related to investment allowance mentioned above that enables effectiveness of the Law as of 1 January
2006 rather than 8 April 2006, since it is against the Constitution. Accordingly, the time limitations for
the carried forward investment allowances that were entitled to in the previous period of mentioned date
and the limitations related with the investments expenditures incurred between the issuance date of the
Law promulgated and 1 January 2006 were eliminated. According to the decision of Turkish
Constitutional Court, cancellation related with the investment allowance became effective with
promulgation of the decision on the Official Gazette and the decision of the Turkish Constitutional Court
was promulgated in the Official Gazette no.27456 dated 8 January 2010.
According to the decision mentioned above, the investment allowances carried forward to the year 2006
due to the lack of taxable income and the investment allowances earned through the investments started
before 1 January 2006 and continued after that date constituting economic and technical integrity will be
used not only in 2006, 2007 and 2008, but also in the following years. In addition, 40% of investment
expenditures that are realized between 1 January 2006 and 8 April 2006, within the context of the Article
19 of the Income Tax Law will have the right for investment allowance exemption.
Macedonian corporate income tax is levied at a rate of 10% on dividend distribution and tax on non
deductible items. Unless there is a dividend distribution, no corporate tax is levied. Losses cannot be
carried forward in determining corporate tax base. Corporate taxpayers should pay tax on their non-
deductible items at a rate of %10. The tax base established on the basis of unrecognized expenditures for
tax purposes is decreased by the amount of the expenditures subject to taxation for which the time period
for their recognition has matured. If formed tax base for the tax period is less than the amount of its
decrease for the same tax period, than the taxpayer shall declare tax loss. Tax losses can be carried
forward for five years according to the amendment on tax legislation
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
56
24 Tax assets and liabilities (continued)
As at 31 December, corporate tax payable comprised the following:
31 December 2012
31 December 2011 Corporate tax liability 14.576.424 4.169.704 Prepaid taxes and funds (8.440.322) (3.794.935) 6.136.102 374.769
For the years ended 31 December, tax expenses comprised the following:
2012
2011 Corporate tax expense (14,576,424) (4,169,704) Deferred tax income / (expense) (6,477,129) (1,186,563)
(21,053,553) (5,356,267)
The reported tax expense for the years ended 31 December is different than the amounts computed by
applying statutory tax rate to profit before tax as shown in the following reconciliation
2012
2011
%
%
Profit/(loss) before tax 103,481,845
(1,043,206)
Tax rate
20
20
Tax computed on profit per statutory tax rate (20,696,369)
(20,00) 208,641
(20,00)
Effect of different tax rates in foreign jurisdictions 86,350
0,08 (8,362)
0,80
Tax effect of non-deductible expenses (3,048,325)
(2,87) (2,352,654)
225,52
Donations 9,376
0,01 (2,131,662)
204,34
Tax exempt income 278,169
0,26 --
--
Change in on investment allowance 1,625,433
1,53 (325,036)
31,16
Recognition of previously unrecognized tax losses (86,232)
(0,08) (658,986)
63,17
Foreign patient incentives 801,019
0,75 --
--
Others (22,974) (0,02) (88,208) 8,46
Taxation credit/ (charge) (21,053,553) (19,83) (5,356,267) 513,44
Deferred tax assets and liabilities
The Group recognizes deferred tax assets and liabilities based upon temporary differences arising between
the financial statements prepared in accordance with the Communiqué No: XI-29 and the statutory tax
financial statements. Related temporary differences are subject to different period records according to
articles and to tax laws for profit and lost items.
According to the decision of the Turkish Constitutional Court promulgated in the Official Gazette
no.27456 dated 8 January 2010, the investment allowances carried forward to the year 2006 due to the
lack of taxable income and the investment allowances earned through the investments started before 1
January 2006 and continued after that date constituting economic and technical integrity will be used not
only in 2006, 2007 and 2008, but also in the following years. In addition, 40% of investment expenditures
that are realized between 1 January 2006 and 8 April 2006, within the context of the Article 19 of the
Income Tax Law will have the right for investment allowance exemption
Deferred tax assets and liabilities deducted for the factors that there is a legally applicable right to deduct
the current year tax assets and liabilities and there is intent of the occurrence of the current year tax assets
and liabilities concurrently are valid.
The unrecorded deferred taxes are re-evaluated at every balance sheet date. If it is possible to make
profits in the future the unrecorded deferred tax assets are reflected to the financial statements.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
57
24 Tax assets and liabilities (continued)
Deferred tax assets and liabilities (continued)
Deferred tax assets and deferred tax liabilities as at 31 December were attributable to the items detailed in
the table below:
31 December 2012 31 December 2011
Deferred Tax
Base
Deferred Tax
Asset / (Liability)
Deferred Tax
Base
Deferred Tax
Asset / (Liability)
Property, equipment and
intangible assets (8,270,237) (1,654,047) (4,849,138) (969,828)
Financial liabilities (1,151,878) (230,376) (1,639,220) (327,843)
Employee benefits 2,307,081 461,416 1,933,425 386,685
Investment allowance -- -- 57,701,175 11,540,235
Trade and other receivables (24,174,706) (4,834,941) (5,945,825) (1,189,165)
Financial investments at fair
value - Interest rate swaps 3,424,635 684,927 5,211,750 1,042,350
Financial investments at fair
value – Forwards 4,333,332 866,666 (7,663,240) (1,532,648)
Provisions 62,371,474 12,474,295 23,464,060 4,692,812
Retained losses 30,182,159 6,036,432 33,259,175 6,651,835
69,021,860 13,804,372 101,472,162 20,294,433
Under the Turkish taxation system, tax losses can be carried forward to be offset against future taxable
income for up to five years. Tax losses cannot be carried back to offset profits from previous periods. The
Group management estimated that there will be taxable profits in the following years. Therefore, as at 31
December 2012, deferred tax asset is recognized in the accompanying consolidated financial statements for
tax losses carried forward amounting to TL 30,182,159 (31 December 2011: TL 33,259,175). Annual
timeout distributions of applicable financial losses are as follows:
31 December 2012 31 December 2011
2017 15,518,367 --
2016 12,536,098 12,545,733
2015 977,935 1,827,009
2014 1,149,759 17,853,331
2013 -- 995,117
2012 -- 37,985
30,182,159 33,259,175
31 December 2012 31 December 2011
Deferred tax assets 20,945,243 26,231,493
Deferred tax liabilities (7,140,871) (5,937,060)
Deferred tax assets, net 13,804,372 20,294,433
For the years ended 31 December, the movement of the deferred tax assets/(liabilities) are as follows:
2012 2011
Opening balance 20.294.433
21.480.996 Taxation credit/ (charge) (6.477.129)
(1.186.563)
Ending balance 13.804.372
20.294.433
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
58
25 Earnings per share
The calculation of basic and diluted earnings/ (losses) per share was calculated by dividing the income
attributable to ordinary shareholders in consolidated statement of comprehensive income to the weighted
average number of ordinary shares outstanding:
2011
2010 Net income/ (loss) for the year 80,094,561 (7,267,553)
Weighted average number of shares 100,000,000 100,000,000
Basic and Diluted Earnings/ (losses) per 1.000 Shares) 800.95 (72.68)
26 Related parties
As at 31 December, short-term trade receivables from related parties are as follow:
31 December 2012
31 December 2011
Trade receivables 12,130,087 9,514,773
Other receivables 20,984 251,970
12,151,071 9,766,743
As at 31 December, short-term trade payables to related parties as follow:
31 December 2012 31 December 2011
Trade payables 32,541,356 29,156,434
Other payables 29,478,619 578,943
62,019,975 29,735,377
Since intra-group balances and transactions between the Company and its subsidiaries are eliminated at
the preparation of the consolidated financial statements they are not disclosed in this note.
31 December 2012 31 December 2011
Trade
Receivables Other
Receivables
Trade
Receivables Other
Receivables
Shareholders
Receivables from other
shareholders -- -- -- 11
Related Parties
Acıbadem Sigorta 11,314,523 -- 9,289,366 160,910
SZA Gayrimenkul 689,582 9,386 -- 60
Acıbadem Diş Limited 72,512 3,146 55,419 389
Aydınlar Sağlık Hizmetleri 36,717 425 25,537 92
Acıbadem Proje 15,635 1,223 80,648 --
Kerem Aydınlar Vakfı 843 645 3,064 11
Acıbadem Vakfı 275 10 -- --
Acıbadem Holding -- -- 52,578 1,170
Akademia -- 191 7,282 731
Acıbadem Sigorta Aracılık -- -- 879 --
Acıbadem Üniversitesi -- -- -- 12,616
Aplus -- 1,197 -- 73,038
Telepati Tanıtım -- -- -- 2,466
Acıbadem Sağlık Yatırımları -- 4,763 -- 60
BLAB -- -- -- 416
12,130,087 20,986
9,514,773 251,970
Acıbadem Sigorta: Company has receivables due to the treatment of Acıbadem Sigorta‘s customers at
Acıbadem hospitals and outpatient clinics.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
59
26 Related parties (continued)
Due to related parties
31 December 2012
31 December 2011
Trade Payables Other payables Trade Payables Other Payables
Shareholders
Mehmet Ali Aydınlar -- 17.826 -- 18.888
Hatice Seher Aydınlar -- 1.783 -- 1.889
Said Haifawi -- 160.487 -- 520.798
Other -- 1.992 -- 2.098
Group Companies
A Plus 19.339.213 -- 13.872.341 --
Acıbadem Proje 7.765.348 92.652 8.938.931 18.478
Telepati Tanıtım 4.416.705 -- 1.206.912 --
Almond Holding 487.025 28.546.368 -- --
Acıbadem Sigorta 309.196 627.396 1.080.179 325
Çukurova Bilim 113.608 10.696 -- --
Acıbadem Üniversitesi 46.211 -- 51.770 --
Acıbadem Diş Limited 36.662 19.419 288.617 13.522
Acıbadem Sigorta Aracılık 25.215 -- 3.238.720 --
Akademia 2.173 -- 2.271 --
Aydınlar Sağlık Hizmetleri -- -- 455.556 --
SZA Gayrimenkul -- -- 21.137 437
Acıbadem Vakfı -- -- -- 2.508
32.541.356 29.478.619 29.156.434 578.943
A Plus: Company provides laundry, catering and cleaning services for various Acıbadem hospitals and outpatient clinics. Acıbadem Proje: Company provides services related with renovation/improvement of hospital buildings
of Acıbadem Sağlık.
Telepati Tanıtım: Company provides advertisement and sponsoring service to Acibadem Sağlık.
Almond Holding: Company has provided financing to Acıbadem Sağlık for operational purposes.
Related party transactions (Sales)
For the years ended 31 December, sales to related parties are as follows:
2012
Sale of services Other
Acıbadem Sigorta 84.727.033 184.612
Acıbadem Sağlık Yatırımları 99.703 3.600
Aplus 77.017 1.116.690
Acıbadem Proje Yönetimi 31.283 230.723
Acıbadem Üniversitesi 43.215 --
Aydınlar Sağlık 340 197.249
Telepati Tanıtım Hizmetleri -- 55.950
Akademia -- 9.925
Almond Holding -- 3.600
SZA Holding -- 262.947
84.978.591 2.065.296
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
60
26 Related parties (continued)
2011
Sale of services Other
Acıbadem Sigorta 66.035.990 524.008
Aplus 103.313 4.059.500
Acıbadem Proje Yönetimi 16.591 239.123
Acıbadem Üniversitesi 12.262 --
Acıbadem Holding 1.179 259.040
Acıbadem Diş 1.179 37.424
Aydınlar Sağlık -- 112.711
Telepati Tanıtım Hizmetleri -- 73.786
Akademia -- 9.900
Çukurova Bilim -- 3.300
Acıbadem Sağlık Yatırımları -- 3.240
Almond Holding -- 3.240
66.170.514 5.325.272
Related party transactions (Purchases)
For the years ended 31 December, purchases from related parties are as follows:
2012
Purchase of services Other
Aplus 57.521.972 --
Acıbadem Proje -- 45.214.949
Acıbadem Sigorta 19.002.434 --
Telepati Tanıtım 6.446.428 --
Aydınlar Sağlık 1.568.505 --
Acıbadem Sigorta Aracılık 28.454 --
Acıbadem Üniversitesi 4.992.240 --
SZA Holding 2.878.110 --
Almond Holding 412.733 --
Acıbadem Sağlık Yatırımları 378 --
Mehmet Ali Aydınlar -- 1.115.221
Zeynep Aydınlar
-- 663.593
Seher Aydınlar
-- 534.780
92.851.254 47.528.543
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
61
26 Related parties (continued)
2011
Purchase of services Other
Aplus 45.002.029 685.747 Acıbadem Proje -- 27.669.736 Acıbadem Sigorta 13.547.288 56.124 Telepati Tanıtım 2.188.909 -- Aydınlar Sağlık 1.102.417 -- Acıbadem Diş 557.267 -- Acıbadem Üniversitesi 47.796 -- Akademia 11.393 --
62.457.099 28.411.607
A Plus: Comprises of purchases related with the laundry, catering and cleaning services.
Acıbadem Proje purchases include the services related with renovation/improvement of hospital buildings
Acıbadem Sigorta purchases include insurance policies related with health and medical equipment.
Guarantees and similar obligations
As at 31 December 2012, the details of the guarantees given as security for the loans used by related
parties are as follows:
Guarantee given Date Type of Foreign Currency
Original
Amount Amount TL
Aplus 12.02.2008 -- -- 500,000
Aplus 06.09.2007 -- -- 420,000
Aplus 05.10.2007 -- -- 200,000
Aplus 20.09.2006 -- -- 150,000
Aplus 02.07.2012 -- -- 350,000
Aplus 27.08.2012 -- -- 350,000
Aplus 30.07.2012 -- -- 350,000
Aplus 01.10.2012 -- -- 350,000
Acıbadem Proje 28.12.2005 -- -- 200,000
Acıbadem Proje 27.01.2005 USD 50,000 89,130
Acıbadem Proje 19.10.2012 -- -- 350,000
Acıbadem Proje 17.08.2012 -- -- 350,000
Acıbadem Proje 19.09.2012 -- -- 350,000
Acıbadem Proje 02.07.2012 -- -- 350,000
4,359,130
As at 31 December 2012, the Acıbadem Poliklinikleri, a consolidated subsidiary, has given guarantees on
behalf of International Hospital regarding to cash credit line up to USD 6,000,000 and on behalf of
Acıbadem Sağlık regarding to cash credit line up to TL 14,134,500 and Euro 5,289,899 from a
commercial bank located in Turkey, which are available for use in the future.
Key management compensation
For the year ended 31 December 2012 , sum of the compensation including salaries and similar type of
payments to the board of directors and key management amounted to TL 9,313,846 (2011: TL
8,045,686).
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
62
27 Nature and level of risks arising from financial instruments
Financial Risk Management Policies
The main financial instruments of the Group are bank loans, cash and short term bank deposit. The main
reason for the usage of these financial instruments is providing funds for the Group‘s activities. The
Group also has trade receivables and trade payables that directly occur during the main activities.
The financial risks are currency risk, interest risk, credit risk and liquidity risk. The Group management
manages these risks as explained below:
Capital Risk Management
The primary objective of the Group is ensuring the continuity of operations while increasing profitability
by using the balance between liabilities and equity in a most effective way. The capital structure of the
Group is consists of the items which include the liabilities, cash and cash equivalents, paid-in capital
which is explained in Note 17, capital reserves and profit reserves.
27 Nature and level of risks arising from financial instruments (continued)
Capital Risk Management (continued)
The cost of capital and the risks associated with each share capital component are evaluated by the key
management of the Group. During these evaluations, if the acceptance of Board of Directors is needed,
the key management represents the evaluation to the Board of Directors for their evaluation.
The general policy and procedure of the Group is not different from the prior periods
Major Accounting Policies
The Group‘s major accounting policies about financial instruments are explained in Note 2 (Bases of
presentation of the consolidated financial statements)
Credit Risk
Credit risk is the risk of handling a financial loss which is caused by another related party by not fulfilling
the obligations regarding to a financial instrument.
Having the financial instruments gives the risk of not fulfilling the requirements of the agreement by the
other parties. The collection risk of the Group is mainly caused from its trade receivables. Trade
receivables are evaluated by management according to the Group‘s procedure and policies and are carried
in the balance sheet as the net of impairment provision (Note 6).
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
63
27 Nature and Level of Risks Arising from Financial Instruments (continued)
Credit Risk (continued)
As at 31 December 2012, details for credit risk are as follows:
Receivables
Bank
deposits Other
31 December 2012
Trade Receivables Other Receivables
Related
party Other
party Related
party Other party
Maximum exposure to credit risk at the reporting
date (A+B+C+D+E) 12,130,087 133,817,480 20,984 10,097,660 35,759,115 5,128,275
- Secured portion of maximum credit risk with
collateral -- -- -- -- -- --
A, Carrying amount of financial assets that are not
overdue and not impaired 12,130,087 86,010,812 20,984 10,097,660 35,759,115 5,128,275
B, Carrying amount of financial assets whose
terms were renegotiated, otherwise are overdue
and impaired -- -- -- -- -- --
C, Carrying amount of assets that are overdue but
not impaired --
47,806,668 -- -- -- --
- Carrying amount secured with collateral -- -- -- -- -- --
D, Carrying amount of assets that are impaired -- -- -- -- -- --
- Overdue (gross carrying amount) -- 10,620,755 -- -- -- --
- Impairment (-) -- (10,620,755) -- -- -- --
- Carrying amount secured with collateral -- -- -- -- -- --
- Not overdue (gross carrying amount) -- -- -- -- -- --
- Impairment (-) -- -- -- -- -- --
- Carrying amount secured with collateral -- -- -- -- -- --
E, Factors that include off balance sheet credit
risks -- -- -- -- -- --
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
64
27 Nature and Level of Risks Arising from Financial Instruments (continued)
Credit risk (continued)
As at 31 December 2011, details for credit risk are as follows:
Receivables
Bank
deposits Other
31 December 2011
Trade receivables Other receivables
Related party Other party Related
party Other
party
Maximum exposure to credit risk at the
reporting date (A+B+C+D+E) 9,514,773 110,652,398 251,970 7,925,392 38,663,848 4,374,314
- Secured portion of maximum credit risk
with collateral -- -- -- -- -- --
A, Carrying amount of financial assets
that are not overdue and not impaired 9,514,773 95,403,453 251,970 7,925,392 38,663,848 4,374,314
B, Carrying amount of financial assets
whose terms were renegotiated, otherwise
are overdue and impaired -- -- -- -- -- --
C, Carrying amount of assets that are
overdue but not impaired -- 15,248,945 -- -- -- --
- Carrying amount secured with collateral -- -- -- -- -- --
D, Carrying amount of assets that are
impaired -- -- -- -- -- --
- Overdue (gross carrying amount) -- 8,387,210 -- -- -- --
- Impairment (-) -- (8,387,210) -- -- -- --
- Carrying amount secured with
collateral -- -- -- -- -- --
- Not overdue (gross carrying amount) -- -- -- -- -- --
- Impairment (-) -- -- -- -- -- --
- Carrying amount secured with
collateral -- -- -- -- -- --
E, Factors that include off balance sheet
credit risks -- -- -- -- -- --
Liquidity Risk
The Group manages its liquidity needs by regularly planning its cash flows or by maintaining sufficient
funds and borrowing sources by matching the maturities of liabilities and assets.
Liquidity risk is probability of unable to fulfill funding obligations of the Group. Prudent liquidity risk
management implies maintaining sufficient cash, securing availability of funding through an adequate
amount of committed credit facilities and the ability to close out market positions. The Group manages its
present and future funding risk by maintaining a balance between continuity and availability of funding
through obtaining sufficient cash and cash equivalents.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
65
27 Nature and level of risks arising from financial instruments (continued)
Liquidity risk (continued)
The tables listed below represents the maturities of non-derivative financial liabilities.
As at 31 December 2012, maturities of non-derivative financial liabilities are as follows:
Contractual
maturities Carrying value
Total cash outflow per
agreement (=I+II+III))
Less than 1 year
(I)
Between 1-5
years (II)
More than 5
years (III)
Payable on
demand
Financial liabilities
Financial liabilities 424.274.678 446.832.469 147.273.701 264.667.624 34.891.144 --
Financial lease
liabilities 131.484.094 150.748.455 35.564.643 107.309.469 7.874.343 --
Other financial
liabilities 7.757.967 8.869.164 8.027.525 868.639 -- --
Expected maturities Carrying value
Expected total cash
outflows (=I+II+III)
Less than 1 year
(I)
Between 1-5
years (II)
More than 5
years (III)
Payable on
demand
Non-derivative financial liabilities
Trade payables
108,914,033 110,125,205 102,807,011 7,318,194 -- --
Due to related parties
62,019,975 62,163,443 62,163,443 -- -- --
Other payables (*)
117,187,739 117,187,739 103,588,575 13,599,164 -- --
(*)Other payables comprise of other non-current payables amounting to TL 13,599,164, accruals amounting to TL 56,776,281, other current payables amounting
to TL 36,964,179 and other current liabilities amounting to TL 35,873,409. From this total, advances received from patients amounting to TL 5,754,139, social
security and taxes payable amounting to TL 18.654.671 and deferred income amounting to TL 4.926.866 are deducted.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
66
27 Nature and level of risks arising from financial instruments (continued)
Liquidity risk (continued)
As at 31 December 2011, maturities of non-derivative financial liabilities are as follows:
Contractual
maturities Carrying value
Total cash outflow per
agreement (=I+II+III)
Less than 1 year
(I) 1-5 years (II)
More than 5
years (III)
Payable on
demand
Financial liabilities
Financial liabilities 458,024,093 511,026,679 100,664,582 310,140,208 100,221,889 --
Financial lease
liabilities 103,786,952 120,144,221 25,638,695 80,980,612 13,524,914
Other financial
liabilities 5,211,751 5,254,493 5,254,493 -- -- --
Expected maturities Carrying value
Expected total cash
out flow (=I+II+III)
Less than 1 year
(I) 1-5 years (II)
More than 5
years (III)
Payable on
demand
Non-derivative financial liabilities
Trade payables 131,435,342 132,304,335 92,904,807 30,968,529 8,430,999 --
Payables to related
parties 29,156,434 29,278,050 20,660,244 8,617,806 -- --
Other payables 69,275,269 69,275,269 14,208,152 18,206,729 36,860,388 --
Financial investments 7,663,242 7,726,088 7,726,088 -- -- --
.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
67
27 Nature and level of risks arising from financial instruments (continued)
Market risk
The Group is exposed to market risk arising from changes in interest rates, foreign currency or in the fair value of financial assets and other financial contracts that may affect the Group adversely. The major risks for the Group are currency risk and interest rate risk, which result from operating activities
Foreign currency risk and related sensitivity analysis
Foreign exchange risk of Group mainly results from that the Group has liabilities denominated in
USD and Euro
Additionally, the Group has foreign exchange risk resulting from the transactions it makes.
These risks are derived from good purchases and sales and use of loans and finance leases in
foreign currency which is different from the Group‘s functional currency.
As at 31 December 2012 and 2011, the net foreign currency position of the Group is TL
506,096,554 (short) and TL 550,348,979 (short) position respectively.
31 December 2012 31 December 2011
Foreign currency assets 4,798,849 1,821,240
Foreign currency liabilities (575,069,003) (621,115,069)
(570,270,154) (619,293,829)
Liabilities in foreign currency that are
hedged against foreign currency risk 64,173,600 68,944,850
Net short position (506,096,554) (550,348,979)
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
68
27 Nature and level of risks arising from financial instruments (continued)
Market risk (continued)
FX POSITION TABLE
31 December 2012
CONSOLIDATED
TL Equivalent
(Functional
currency) USD EURO MKD GBP CHF OTHER
1. Trade receivables 402,303 13,579 160,776 -- -- -- --
2a. Monetary financial assets (include cash and bank
deposit) 3,226,827 1,440,049 257,244 -- 13,212 8,701 --
2b. Non-monetary financial assets -- -- -- -- -- -- --
3. Other 1,153,230 641,545 4,087 -- -- -- --
4. Current Assets (1+2+3) 4,782,360 2,095,173 422,107 -- 13,212 8,701 --
5. Trade receivables -- -- -- -- -- -- --
6a. Monetary financial assets 16,489 9,250 -- -- -- -- --
6b. Non-monetary financial assets -- -- -- -- -- -- --
7. Other -- -- -- -- -- -- --
8. Non Current Assets (5+6+7) 16,489 9,250 -- -- -- -- --
9. Total Assets (4+8) 4,798,849 2,104,423 422,107 -- 13,212 8,701 --
10. Trade payables 13,748,359 5,382,036 893,024 -- -- 1,057,240 --
11. Financial liabilities 108,134,097 39,098,902 9,566,494 188,554,658 -- 4,491,942 --
12a. Other monetary liabilities 1,227,113 364,989 245,135 -- -- -- --
12b. Other non-monetary liabilities 28,546,367 16,013,894 -- -- -- -- --
13. Current Liabilities (10+11+12) 151,655,936 60,859,821 10,704,653 188,554,658 -- 5,549,182 --
14. Trade payables 425,620 -- 180,984 -- -- -- --
15. Financial liabilities 388,070,240 157,870,550 26,122,058 161,230,779 -- 20,099,276 --
16a. Other monetary liabilities 34,917,207 19,117,167 356,740 -- -- -- --
16b. Other non-monetary liabilities -- -- -- -- -- -- --
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
69
27 Nature and level of risks arising from financial instruments (continued)
Market Risk (Continued)
17. Non-Current Liabilities (14+15+16) 423,413,067 176,987,717 26,659,782 161,230,779 -- 20,099,276 --
18. Total Liabilities (13+17) 575,069,003 237,847,538 37,364,435 349,785,437 -- 25,648,458
19. Off balance sheet foreign currency 64,173,600 36,000,000 -- -- -- -- --
denominated derivatives --
net assets/liabilities position (19a-19b) --
19a. Off balance sheet foreign currency 64,173,600 36,000,000 -- -- -- -- --
denominated derivatives assets amount -- -- -- -- -- -- --
19b. Off balance sheet foreign currency -- -- -- -- -- -- --
denominated derivatives liabilities amount -- -- -
20. Net foreign currency denominated assets
/(liabilities) position (9-18+19) (506,096,554) (199,743,115) (36,942,328) (349,785,437) 13,212 (25,639,757) --
21. Monetary accounts net foreign currency
denominated assets /(liabilities) position (1+2a+5+6a-
10-11-12a-14-15-16a) (541,723,787) (219,729,221) (36,942,328) (349,785,437) 13,212 (25,639,757) --
22. Fair value of hedging financial instruments -- -- -- --
23. Hedged foreign currency denominated assets -- -- -- -- -- --
24. Hedged foreign currency denominated -- -- -- -- -- --
Liabilities -- -- -- -- -- --
25. Export -- -- -- -- -- --
26. Import -- -- -- -- -- --
-- -- -- -- -- --
423,413,067 176,987,717 26,659,782 161,230,779 -- 20,099,276 --
575,069,003 237,847,538 37,364,435 349,785,437 -- 25,648,458
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
70
27 Nature and level of risks arising from financial instruments (continued)
Market Risk (Continued)
FX POSITION TABLE
31 December 2011
CONSOLIDATED
TL Equivalent
(Functional
currency) USD EURO MKD GBP CHF Other
1. Trade receivables 57,380 7,620 17,590 -- -- -- --
2a.Monetary financial assets (include cash and
bank deposit) 1,559,834 420,330 312,277 -- 225 1,035 --
2b. Non-monetary financial assets -- -- -- -- -- -- --
3. Other -- -- -- -- -- -- --
4. Current Assets (1+2+3) 1,617,214 427,950 329,867 -- 225 1,035 --
5. Trade receivables -- -- -- -- -- --
6a. Monetary financial assets 204,026 -- 83,487 -- -- -- --
6b. Non-monetary financial assets -- -- -- -- -- -- --
7. Other -- -- -- -- -- -- --
8. Non Current Assets (5+6+7) 204,026 -- 83,487 -- -- -- --
9. Total Assets (4+8) 1,821,240 427,950 413,354 -- 225 1,035 --
10. Trade payables 16,674,007 3,093,216 4,410,041 -- 18,503 -- --
11. Financial liabilities 102,245,713 41,407,971 4,148,789 130,833,453 -- 4,297,976 --
12a. Other monetary liabilities -- -- -- -- -- -- --
12b. Other non-monetary liabilities 16,892,910 8,943,253 -- -- -- -- --
13. Current Liabilities (10+11+12) 135,812,630 53,444,440 8,558,830 130,833,453 18,503 4,297,976 --
14. Trade payables 5,451,601 2,876,000 7,826 -- -- -- --
15. Financial liabilities 444,253,315 188,973,587 10,038,015 333,622,773 -- 24,591,218 --
16a. Other monetary liabilities 35,597,523 18,845,637 -- -- -- -- --
16b. Other non-monetary liabilities -- -- -- -- -- -- --
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
71
27 Nature and level of risks arising from financial instruments (continued)
17. Non-Current Liabilities (14+15+16) 485,302,439 210,695,224 10,045,841 333,622,773 - 24,591,218 --
621,115,069 264,139,664 18,604,671 464,456,226 18,503 28,889,194 -- 18. Total Liabilities (13+17)
19. Off balance sheet foreign currency
68,944,850 36,500,000 -- -- -- -- --
denominated derivatives
net assets/liabilities position (19a-19b)
19a. Off balance sheet foreign currency
68,944,850 36,500,000 -- -- -- -- --
denominated derivatives assets amount
19b. Off balance sheet foreign currency
-- -- -- -- --
denominated derivatives liabilities amount
20. Net foreign currency denominated assets
/(liabilities) position (9-18+19) (550,348,979) (227,211,714) (18,191,317) (464,456,226) (18,278) (28,888,159) --
21. Monetary accounts net foreign currency
denominated assets /(liabilities) position (1+2a+5+6a-
10-11-12a-14-15-16a) (602,400,919) (263,711,714) (18,191,317) (464,456,226) (18,278) (28,888,159) --
22. Fair value of hedging financial instruments -- -- -- -- --
23. Hedged foreign currency denominated assets
-- -- -- -- -- -- --
24. Hedged foreign currency denominated
-- -- -- -- --
25. Export -- -- -- -- -- -- --
26. Import -- -- -- -- -- -- --
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
72
27 Nature and level of risks arising from financial instruments (continued)
Market risk (continued)
The foreign currency risk of the Group is related to the bank loans borrowed and financial lease liabilities.
The Group has a pricing policy that changes according to the deviations in the long term borrowings and
volatility of foreign exchange rates for minimizing this risk. Furthermore, Acıbadem Sağlık hedges 18
months portion of principals and the related interest payments related to the long term bank loans of USD
154,000,000 used from a commercial bank located in Turkey at the ―Future Transactions Market‖.
Maturities of the forward agreements are January and July 2013 and January 2014 in the amount of USD
189,000,000.
The changes in foreign currency position of the Group as of the balance sheet date are as follows:
Foreign currency sensitivity analysis
31 December 2012
Profit/Loss
Comprehensive
Income/Loss
Increase of foreign
currency
Decrease of
foreign currency
Increase of
foreign
currency
Decrease of
foreign
currency
Change of USD exchange rate against TL by 10%:
1- USD denominated net assets/liabilities (42.023.568) 42.023.568
2- Hedged amount against USD Dollar risk (-) 6.417.360 (6.417.360)
3- Net effect of USD (1+2) (35.606.208) 35.606.208
Change of Euro exchange rate against TL by 10%:
4- Euro denominated net assets/liabilities (8.687.727) 8.687.727
5- Hedged amount against Euro risk (-) -- --
6- Net effect Euro (4+5) (8.687.727) 8.687.727
Change of other currencies against TL by 10%:
7- Other foreign currency denominated net
assets/liabilities (6.315.721) 6.315.721 4.922 (4.922)
8- Hedged amount against other foreign risk
(-) -- -- -- --
9- Net effect of other foreign currency
(7+8) (6.315.721) 6.315.721 4.922 (4.922)
TOTAL (3+6+9) (50.609.656) 50.609.656 4.922 (4.922)
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
73
27 Nature and level of risks arising from financial instruments (continued)
Foreign currency sensitivity analysis
31 December 2011
Profit/Loss
Comprehensive
Income/Loss
Increase of foreign
currency
Decrease of
foreign currency
Increase of
foreign
currency
Decrease of
foreign
currency
Change of USD exchange rate against TL by 10%:
1- USD denominated net assets/liabilities (46.920.120) 46.920.120 -- --
2- Hedged amount against USD Dollar risk (-) 6.417.360 (6.417.360) -- --
3- Net effect of USD (1+2) (40.502.760) 40.502.760 -- --
Change of Euro exchange rate against TL by 10%:
4- Euro denominated net assets/liabilities (4.278.052) 4.278.052 -- --
5- Hedged amount against Euro -- -- -- --
6- Net Effect Euro (4+5) (4.278.052) 4.278.052 -- --
Change of other currencies against TL by 10%:
7- Other foreign currency denominated net
assets/liabilities (7.394.469) 7.394.469 2.862 (2.862)
8- Hedged amount against other foreign risk
(-) -- -- -- --
9- Net effect of other foreign currency
(7+8) (7.394.469) 7.394.469 2.862 (2.862)
TOTAL (3+6+9) (52.175.281) 52.175.281 2.862 (2.862)
Interest rate risk
The Group is exposed to interest rate risk arising from its interest bearing liabilities and assets. As part of
its fund management policy, the interest risk of interest bearing assets is calculated by performing
sensitivity analysis. The sensitivity of interest sensitive assets in response to changes in market interest
rates is computed based on the average maturities and average interest sensitive assets; the interest rate
risk arising from the securities portfolio held as part of fund management function is monitored within
expectations of market rates by closely watching the financial markets.
Additionally, as at 31 December 2012, the Company has interest rate swap transactions which are
hedging USD 69,300,000 portion of outstanding USD 154,000,000 facility used from a commercial bank
located in Turkey from the risk of interest rate changes. The interest rate position table is as follows:
Interest Rate Position
31 December 2012 31 December 2011
Fixed interest bearing financial instruments
Financial assets Time deposits 30.738.782 35.723.160
Financial liabilities 125.661.919 192.549.027
Variable interest bearing financial instruments
Financial assets -- --
Financial liabilities 430.096.853 368.946.750
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
74
27 Nature and level of risks arising from financial instruments (continued)
Interest rate risk (continued)
As at 31 December 2012, an increasing change at interest rate of 100 basis points would have an impact of
TL 2,060,757 (31 December 2011: TL 1,951,996) decrease on the net income amount as stated on the
consolidated statement of comprehensive income. If the interest rates applied to Group decrease by 100
basis points, the net profit of the period would increase by TL 2,196,645 TL (31 December 2011: TL
1,951,996).
28 Financial Instruments: Fair Value Disclosure
As at 31 December, fair value of financial assets and liabilities are as below:
31 December 2012
31 December 2011
Note
Carrying
Amount
Fair Value
Carrying
Amount
Fair Value
Financial Assets
Cash and cash equivalents (*) 4 40.887.390
40.887.390
43.038.162
43.038.162
Trade receivables 6 133.817.480
133.817.480
110.652.398
110.652.398
Trade receivables from related parties 26 12.130.087
12.130.087
9.514.773
9.514.773
Other receivables from related parties 26 20.984
20.984
251.970
251.970
Other receivables (**) 7 9.567.556
9.567.556
7.539.415
7.539.415
Other current and non-current assets
(***) 16 604.294
604,294
430.977
430.977
197.027.791 197.027.791
171.427.695 171.427.695
(*) Cash on hand amount is excluded
(**) For the fair value measurement, deposits and guarantees given are excluded
(***) For the fair value measurement; various prepaid expenses, income accruals, VAT receivables and
advances given are excluded from other current and non-current assets.
Note 31 December 2012
31 December 2011
Financial liabilities
Carrying
Amount
Fair Value
Carrying
Amount
Fair Value
Financial liabilities 5 555,758,772
553,369,911
561,811,045
561,811,045
Other trade payables 6 108,914,033
108,914,033
131,435,342
131,435,342
Trade payables to related parties 26 32,541,356
32,541,356
29,156,434
29,156,434
Other payables to related parties 26 29,478,619
29,478,619
578,942
578,942
Other payables (*) 7 43,970,156
43,970,156
53,225,309
53,225,309
Other liabilities 16 15,602,253
15,602,253
14,208,152
14,208,152
786,265,189 783,876,328
790,415,224 790,415,224
(*) For the fair value measurement, social security, other taxes payable, advances received and deferred income are excluded from other liabilities.
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
75
28 Financial Instruments: Fair value disclosure (continued)
Fair value is the amount which can be measurable with closest market price that can be obtained in a sale
process except forced sale or liquidation in which there are applicants for both selling and buying.
The estimated fair values of financial instruments have been determined using available market
information by the Group, using appropriate valuation methodologies. However, the management of the
Group has used available market information in estimating the fair values; the market information may not
be fully reflective of the value that could be realized in the current circumstances. The following methods
and assumptions are used for the determination of fair values of financial instruments:
Fair values of cash and cash equivalents, including accrued interest, and other financial assets are assumed
to approximate their carrying amounts due to their short-term maturity and being subject to insignificant
credit risk. Fair values of trade receivables net of doubtful receivables are assumed to approximate their
carrying amounts.
Classification of fair value measurement
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3: Fair value measurements using inputs for the assets or liability that are not based on observable
market data (i.e. unobservable inputs).
The classification of fair value measurements of financial assets and liabilities measured at fair value is as
follows:
31 December 2012 Level 1
Level 2
Level 3
Interest rate swap -- 3,424,635 --
Forward contracts -- 4,333,332 --
Mutual funds 454.077
-- --
31 December 2011 Level 1
Level 2
Level 3
Interest rate swap -- 5,211,751 --
Forward contracts -- 7,663,242 --
Mutual funds 484,910 -- --
Capital management policies
The Group‘s capital management is to ensure that it maintains a strong credit rating and healthy capital
ratios in order to support its business and maximize shareholder value. The Group monitors the return on
capital as well as the level of dividends to ordinary shareholders. No changes have been made in the
objectives, policies or processes during the years 2012 and 2011
Acıbadem Sağlık Hizmetleri ve Ticaret Anonim Şirketi and Its Subsidiaries
Notes to the Consolidated Financial Statements
As at and for the years ended 31 December 2012 Amounts expressed in TL otherwise stated.
76
29 Operational Leases
As at 31 December 2012, the future minimum lease payments under non-cancellable operating leases are
payable as follows.
31 Dec. 2012 31 Dec. 2011
Less than one year 39.570.496 37.136.386
Between one and five years 179.605.761 120.252.248
More than five years 398.177.616 158.181.671
617.353.873 315.570.305
Group leases certain properties for its operations such as hospital and polyclinics buildings, apartments and
lodgments via operating leases. Some of leasing agreements includes additional lease payments based on
the local indexes. Maturity date of all the leasing and sub-leasing agreements are finalized in the year 2031
and before 2031.
30 Subsequent events
The protocol regarding the purchase of 65% shares of Jinemed Sağlık Hizmetleri A.Ş. with an amount of
TL 13,650,000 was terminated on 10 January 2013 in view of non-fulfillment of certain conditions
precedent as stipulated in the share purchase agreement.
After negotiations held with Labmed, subsidiary of Acıbadem Sağlık, a Share Purchase Agreement was
signed for the remaining 50% shares on 15 January 2013 at a purchase price of EUR 3,250,000. The share
transfer was executed on the same date.