| 16. | Asset held for sale and discontinued operations |
Disposal of Fintur
Classification
On 1 October 2016, the Group announced its intention to exit from jurisdictions in which Fintur operates and initiated an active program to locate a buyer. Starting from 1 October 2016, Fintur has been classified as held for sale and reported as a discontinued operation.
The Group is still committed to the plan to exit from jurisdictions in which Fintur operates and the delay in the initial one-year period to complete the sale was caused by events and circumstances beyond the Group’s control. The Group has taken necessary actions to respond to those circumstances and Fintur is being actively marketed at reasonable prices given the change in circumstances.
Presentation
Fintur is classified as held for sale and reported as a discontinued operation and therefore disclosed separately on a single line as discontinued operation in the consolidated statements of profit or loss, comprehensive income and cash flows. Investment in Fintur is presented as held for sale in the consolidated statement of financial position. Comparative periods in the consolidated statements of profit or loss, comprehensive income and cash flows are restated to reflect the classification of Fintur as a discontinued operation.
Measurement
Equity accounting for Fintur ceased from 1 October 2016, and in accordance with IFRS 5, Fintur has been measured at the lower of carrying amount and fair value less costs of disposal. As at 31 December 2017, carrying value of investment in Fintur is TL 1,294,938 (31 December 2016: TL 1,222,757) which is lower than the fair value less costs of disposal indicating that no impairment is required at 31 December 2017.
The reconciliation of statement of profit or loss statement of Fintur is listed below (The financial statements are presented in USD);
| 1 January – 30 September 2016 |
1 January – 31 December 2015 |
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Revenue |
617,214 | 1,325,535 | ||||||
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Cost of sales |
(369,104 | ) | (674,334 | ) | ||||
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Gross profit |
248,110 | 651,201 | ||||||
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Selling and marketing expenses |
(69,983 | ) | (123,244 | ) | ||||
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General and administrative expenses |
(69,818 | ) | (95,380 | ) | ||||
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Other operating (expenses), net |
(31,258 | ) | (23,850 | ) | ||||
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Operating profit |
77,051 | 408,727 | ||||||
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Finance (expense)/income, net |
(61,203 | ) | 162,357 | |||||
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Profit before income tax |
15,848 | 571,084 | ||||||
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Total income tax |
(30,947 | ) | (128,121 | ) | ||||
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(Loss)/profit for period |
(15,099 | ) | 442,963 | |||||
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Attributable to: |
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-owners of the parent |
(28,695 | ) | 327,194 | |||||
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-non-controlling interests |
13,596 | 115,769 | ||||||
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(Loss)/profit for period |
(15,099 | ) | 442,963 | |||||
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