117 / 147
On disposal of revalued assets, amounts in revaluation reserves relating to that asset are transferred to retained earnings. Further, the depreciation difference realized from the revaluation
surplus is transferred to retained earnings on annual basis as the asset is used by the Group.
Had the revalued assets been carried at cost less any accumulated depreciation and any accumulated impairment losses, the carrying amounts of land, buildings, machinery and
equipment that would have been included in the consolidated financial statements as of 31 December 2014 and 2013.
Movements in revaluation surplus of land, buildings, machinery and equipment before allocation of non-controlling interest are as follows:
11. PROPERTY, PLANT AND EQUIPMENT
(continued)
Market Valuation (fair value assessment)
Land, buildings, flat steel and steel pipe machinery of the Group are revalued in December 2014 by independent professional appraiser, Standart Gayrimenkul Değerleme Uygulamaları
A.Ş., of which the effective date is 31 December 2014. Valuations for those assets were made on the basis of the market value. Initially, the book values of such assets were adjusted to
the revalued amounts and the resultant initial surplus (reserve) net of deferred taxes was credited to revaluation reserve in equity. Accumulated depreciation of the revalued buildings and
machinery and equipment have been eliminated against the gross carrying amounts of related assets as at 31 December 2014 and the net amount is restated to the revalued amount. The
Group Management believes that the carrying amount of the revalued assets does not differ significantly from its fair values hence they have not performed a new revaluation exercise
as at the balance sheet date.
Details of the Group’s fair value hierarchy as at 31 December 2014 and 2013 are as follows:
Fair value as at 31 December 2014
Level 1
Level 2
Level 3
Total
-Lands & Buildings
-
785,804,786
-
785,804,786
Fair value as at 31 December 2013
Level 1
Level 2
Level 3
-Lands & Buildings
-
594,958,733
-
594,958,733
1 January -
1 January -
31 December 2014
31 December 2013
At the beginning of the year
320,827,431
315,455,367
Disposal from revaluation reserve
(486,567)
(2,513,304)
Current year addition revaluation adjustment
200,793,342
23,912,000
Current year decrease revaluation adjustment
-
(8,277,820)
Transfer of depreciation difference (net of deferred tax)
between the revalued and original value of assets realized from
revaluation reserve into retained earnings pursuant to IAS 16
(5,476,449)
(7,748,812)
At the end of the year
515,657,757
320,827,431
BORUSAN HOLDING A.Ş. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014
(Currency - US Dollars (“USD”) unless otherwise indicated)