XML 56 R39.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Financial instruments | 12 Months Ended
--- | ---
Dec. 31, 2017
Text block1 [abstract] |
Financial instruments |
33. | Financial instruments
Credit risk Exposure to credit risk: The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is:
|  |  |  |  | 2017 |  |  | 2016 |
Trade receivables |  |  | 19 |  |  |  | 3,004,206 |  |  |  | 3,525,297 |
Receivables from financial services |  |  | 20 |  |  |  | 4,248,120 |  |  |  | 2,396,372 |
Cash and cash equivalents* |  |  | 23 |  |  |  | 4,712,141 |  |  |  | 6,052,129 |
Participating cross currency swap and FX swap contracts |  |  | 32 |  |  |  | 981,396 |  |  |  | 390,958 |
Other current assets** |  |  | 22 |  |  |  | 316,042 |  |  |  | 93,376 |
Held to maturity investments |  |  |  |  |  |  | 11,992 |  |  |  | — |
Due from related parties |  |  | 37 |  |  |  | 5,299 |  |  |  | 5,861 |
|  |  |  |  |  |  | 13,279,196 |  |  |  | 12,463,993 |
| * | Cash in hand is excluded from cash and cash equivalents.
| ** | Prepaid expenses and advances given are excluded from other current assets and other non-current assets.
Credit quality: The maximum exposure to credit risk for trade receivables and receivables from financial services arising from sales transactions including those classified as due from related parties at the reporting date by type of customer is:
|  | 2017 |  |  | 2016 |
Receivable from subscribers |  |  | 2,472,596 |  |  |  | 3,061,130 |
Receivables from financial services |  |  | 4,248,120 |  |  |  | 2,396,372 |
Receivables from distributors and other operators |  |  | 516,352 |  |  |  | 376,204 |
Other |  |  | 20,557 |  |  |  | 93,824 |
|  |  | 7,257,625 |  |  |  | 5,927,530 |
The aging of trade receivables and due from related parties at 31 December 2017 and 2016:
|  | 2017 |  |  | 2016 |
Not past due |  |  | 2,124,719 |  |  |  | 3,138,043 |
Past due up to 3 months |  |  | 317,649 |  |  |  | 285,561 |
Past due 3 to 6 months |  |  | 95,738 |  |  |  | 48,775 |
Past due over 6 months |  |  | 471,399 |  |  |  | 58,779 |
|  |  | 3,009,505 |  |  |  | 3,531,158 |
The aging of receivables from financial services at 31 December 2017 and 2016:
|  | 2017 |  |  | 2016 |
Not past due |  |  | 3,659,521 |  |  |  | 2,350,375 |
Past due up to 3 months |  |  | 513,925 |  |  |  | 16,533 |
Past due 3 to 6 months |  |  | 39,233 |  |  |  | 20,227 |
Past due over 6 months |  |  | 35,441 |  |  |  | 9,237 |
|  |  | 4,248,120 |  |  |  | 2,396,372 |
As at 31 December 2017, trade receivables, due from related parties and receivables from financial services of TL 1,473,385 (2016: TL 439,112) were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default. The other classes within trade receivables, due from related parties and receivables from financial services do not contain impaired assets and are not past due. Based on the credit history of these other classes, it is expected that these amounts will be received when due. The Group holds TL 339,543 (2016: TL 156,647) collateral in relation to these receivables. Impairment losses Individual receivables which are known to be uncollectible are written off by reducing the carrying amount directly. The other receivables are assessed collectively to determine whether there is objective evidence that an impairment has been incurred but not yet been identified. The Group considers that there is evidence of impairment if any of the following indicators are present:
| • |  | significant financial difficulties of the customer
| • |  | probability that the customer will enter bankruptcy or financial reorganisation, and
| • |  | default or delinquency in payments
Receivables for which an impairment provision was recognized are written off against the provision when there is no expectation of recovering additional cash. Impairment losses are recognized in profit or loss within administrative expense (Note 10). Subsequent recoveries of amounts previously written off are credited against administrative expense (Note 10). Movements in the provision for impairment of trade receivables and due from related parties are as follows:
|  | 31 December 2017 |  |  | 31 December 2016 |
Opening balance |  |  | 964,311 |  |  |  | 816,373 |
Provision for impairment recognized during the year |  |  | 180,948 |  |  |  | 452,767 |
Amounts collected |  |  | (224,460 | ) |  |  | (251,553 | )
Exchange differences |  |  | 3,128 |  |  |  | 5,038 |
Receivables written off during the year as uncollectible |  |  | (138,529 | ) |  |  | (58,314 | )
Unused amount reversed (*) |  |  | (79,958 | ) |  |  | — |
Closing balance |  |  | 705,440 |  |  |  | 964,311 |
| (*) | The Company signed a transfer of claim agreement with a debt management company to transfer some of its doubtful receivables stemming from the years between 1998 to 2016. Transferred doubtful receivables comprise of balances that the Company started legal proceedings.
Movements in the provision for impairment of receivables from financial services are as follows:
|  | 31 December 2017 |  |  | 31 December 2016 |
Opening |  |  | 10,170 |  |  |  | — |
Provision for impairment recognized during the year |  |  | 117,293 |  |  |  | 11,593 |
Amounts collected |  |  | (37,503 | ) |  |  | (1,423 | )
Unused amount reversed (*) |  |  | (16,968 | ) |  |  | — |
Closing balance |  |  | 72,992 |  |  |  | 10,170 |
| (*) | The Company signed a transfer of claim agreement with a debt management company to transfer some of its doubtful receivables stemming from the year 2017. Transferred doubtful receivables comprise of balances that the Company started legal proceedings.
Liquidity risk The table below analyses the Group’s financial liabilities into relevant maturity groupings based on their contractual maturities for:
| - | all non-derivative financial liabilities, and
| - | gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.
|  | 31 December 2017 |  |  | 31 December 2016 |
|  | Carrying Amount |  |  | Contractual cash flows |  |  | 6 months or less |  |  | 6-12 Months |  |  | 1-2 years |  |  | 2-5 years |  |  | More than 5 Years |  |  | Carrying Amount |  |  | Contractual cash flows |  |  | 6 months or less |  |  | 6-12 months |  |  | 1-2 years |  |  | 2-5 years |  |  | More than 5 Years |
Non-derivative financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured bank loans |  |  | 4,390 |  |  |  | (5,011 | ) |  |  | — |  |  |  | (1,117 | ) |  |  | (2,045 | ) |  |  | (1,849 | ) |  |  | — |  |  |  | 5,634 |  |  |  | (7,691 | ) |  |  | (1,123 | ) |  |  | (1,077 | ) |  |  | (2,015 | ) |  |  | (3,476 | ) |  |  | — |
Unsecured bank loans |  |  | 10,533,518 |  |  |  | (11,094,697 | ) |  |  | (3,275,230 | ) |  |  | (955,637 | ) |  |  | (2,575,807 | ) |  |  | (3,035,914 | ) |  |  | (1,252,109 | ) |  |  | 7,804,758 |  |  |  | (8,458,901 | ) |  |  | (1,332,478 | ) |  |  | (1,330,322 | ) |  |  | (1,433,790 | ) |  |  | (3,187,687 | ) |  |  | (1,174,624 | )
Finance lease liabilities |  |  | 122,720 |  |  |  | (133,570 | ) |  |  | (18 | ) |  |  | (17,429 | ) |  |  | (16,789 | ) |  |  | (38,933 | ) |  |  | (60,401 | ) |  |  | 48,114 |  |  |  | (54,273 | ) |  |  | (70 | ) |  |  | (7,837 | ) |  |  | (6,648 | ) |  |  | (19,859 | ) |  |  | (19,859 | )
Debt securities issued |  |  | 1,875,521 |  |  |  | (2,753,486 | ) |  |  | (54,221 | ) |  |  | (54,221 | ) |  |  | (108,442 | ) |  |  | (325,326 | ) |  |  | (2,211,276 | ) |  |  | 1,922,656 |  |  |  | (2,824,066 | ) |  |  | (298,767 | ) |  |  | (48,767 | ) |  |  | (97,535 | ) |  |  | (292,604 | ) |  |  | (2,086,393 | )
Trade and other payables* |  |  | 2,527,152 |  |  |  | (2,548,365 | ) |  |  | (2,548,365 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,241,403 |  |  |  | (3,266,123 | ) |  |  | (3,266,123 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Due to related parties |  |  | 6,980 |  |  |  | (6,980 | ) |  |  | (6,980 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 11,201 |  |  |  | (11,201 | ) |  |  | (11,201 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consideration payable in relation to acquisition of Belarusian Telecom (Note 31) |  |  | 323,691 |  |  |  | (377,190 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (377,190 | ) |  |  | — |  |  |  | 295,062 |  |  |  | (351,920 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (351,920 | ) |  |  | — |
Derivative financial liabilities Participating Cross Currency Swap and FX swap contracts |  |  | 107,862 |  |  |  | 23,428 |  |  |  | 18,982 |  |  |  | — |  |  |  | 4,446 |  |  |  | — |  |  |  | — |  |  |  | 40,440 |  |  |  | 46 |  |  |  | 46 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Buy |  |  |  |  |  |  | 1,838,554 |  |  |  | 1,471,106 |  |  |  | — |  |  |  | 367,448 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 28,059 |  |  |  | 28,059 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Sell |  |  |  |  |  |  | (1,815,126 | ) |  |  | (1,452,124 | ) |  |  | — |  |  |  | (363,002 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (28,013 | ) |  |  | (28,013 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Currency forward contracts |  |  | 2,246 |  |  |  | (2,246 | ) |  |  | (2,246 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,286 |  |  |  | (1,286 | ) |  |  | (1,286 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Buy |  |  |  |  |  |  | 190,185 |  |  |  | 190,185 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 105,826 |  |  |  | 105,826 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Sell |  |  |  |  |  |  | (192,431 | ) |  |  | (192,431 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (107,112 | ) |  |  | (107,112 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
TOTAL |  |  | 15,504,080 |  |  |  | (16,898,117 | ) |  |  | (5,868,078 | ) |  |  | (1,028,404 | ) |  |  | (2,698,637 | ) |  |  | (3,779,212 | ) |  |  | (3,523,786 | ) |  |  | 13,370,554 |  |  |  | (14,975,415 | ) |  |  | (4,911,002 | ) |  |  | (1,388,003 | ) |  |  | (1,539,988 | ) |  |  | (3,855,546 | ) |  |  | (3,280,876 | )
| * | Advances received, license fee accruals, taxes and withholding taxes payable are excluded from trade and other payables.
Foreign exchange risk The Group’s exposure to foreign exchange risk at the end of the reporting period, based on notional amounts, was as follows:
|  | 31 December 2016 |
|  | USD |  |  | EUR |
Foreign currency denominated assets |  |  |  |  |  |  |  |
Other non-current assets |  |  | 244 |  |  |  | 2,131 |
Due from related parties |  |  | 1,210 |  |  |  | 388 |
Trade receivables and accrued income |  |  | 14,178 |  |  |  | 61,841 |
Other current assets |  |  | 19,929 |  |  |  | 7,144 |
Cash and cash equivalents |  |  | 807,372 |  |  |  | 378,057 |
|  |  | 842,933 |  |  |  | 449,561 |
Foreign currency denominated liabilities |  |  |  |  |  |  |  |
Loans and borrowings-non-current |  |  | (483,910 | ) |  |  | (959,482 | )
Debt securities issued-non-current |  |  | (451,588 | ) |  |  | — |
Other non-current liabilities |  |  | (99,273 | ) |  |  | — |
Loans and borrowings-current |  |  | (80,029 | ) |  |  | (21,985 | )
Debt securities issued-current |  |  | (26,845 | ) |  |  | — |
Trade and other payables-current |  |  | (175,083 | ) |  |  | (425,992 | )
Due to related parties |  |  | (398 | ) |  |  | (334 | )
|  |  | (1,317,126 | ) |  |  | (1,407,793 | )
Derivative financial instruments |  |  |  |  |  |  |  |
Participating cross currency swap and FX swap contracts |  |  | 257,960 |  |  |  | 525,000 |
Currency forward contracts |  |  | (30,071 | ) |  |  | — |
Net exposure |  |  | (246,304 | ) |  |  | (433,232 | )
|  | 31 December 2017 |
|  | USD |  |  | EUR |
Foreign currency denominated assets |  |  |  |  |  |  |  |
Other non-current assets |  |  | 72 |  |  |  | 2,681 |
Due from related parties |  |  | 571 |  |  |  | 407 |
Trade receivables and accrued income |  |  | 18,890 |  |  |  | 57,283 |
Other current assets |  |  | 43,039 |  |  |  | 35,049 |
Cash and cash equivalents |  |  | 688,717 |  |  |  | 237,697 |
|  |  | 751,289 |  |  |  | 333,117 |
Foreign currency denominated liabilities |  |  |  |  |  |  |  |
Loans and borrowings-non-current |  |  | (557,180 | ) |  |  | (960,629 | )
Debt securities issued-non-current |  |  | (469,387 | ) |  |  | — |
Other non-current liabilities |  |  | (85,816 | ) |  |  | — |
Loans and borrowings-current |  |  | (206,535 | ) |  |  | (285,827 | )
Debt securities issued-current |  |  | (27,848 | ) |  |  | — |
Trade and other payables-current |  |  | (328,323 | ) |  |  | (29,442 | )
Due to related parties |  |  | (1,172 | ) |  |  | (394 | )
|  |  | (1,676,261 | ) |  |  | (1,276,292 | )
Derivative financial instruments |  |  |  |  |  |  |  |
Participating cross currency swap and FX swap contracts |  |  | 937,011 |  |  |  | 748,650 |
Currency forward contracts |  |  | 50,000 |  |  |  | — |
Net exposure |  |  | 62,039 |  |  |  | (194,525 | )
Exposure to currency risk (continued) Sensitivity analysis The basis for the sensitivity analysis to measure foreign exchange risk is an aggregate corporate-level currency exposure. The aggregate foreign exchange exposure is composed of all assets and liabilities denominated in foreign currencies. The analysis excludes net foreign currency investments. 10% strengthening of the TL, UAH, BYN against the following currencies at 31 December 2017 and 31 December 2016 would have increased/(decreased) profit or loss before by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.
|  | Profit or loss |
|  | 31 December 2017 |  |  | 31 December 2016 |
USD |  |  | (23,400 | ) |  |  | 86,679 |
EUR |  |  | 87,838 |  |  |  | 160,725 |
10% weakening of the TL, UAH, BYN against the following currencies at 31 December 2017 and 31 December 2016 would have increased/(decreased) profit or loss before tax by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.
|  | Profit or loss |
|  | 31 December 2017 |  |  | 31 December 2016 |
USD |  |  | 23,400 |  |  |  | (86,679 | )
EUR |  |  | (87,838 | ) |  |  | (160,725 | )
Interest rate risk As at 31 December 2017 and 2016 the interest rate profile of the Group’s interest-bearing financial instruments was as follows:
|  |  |  |  | 31 December 2017 |  |  | 31 December 2016 |
|  | Note |  |  | Effective Interest Rate |  |  | Carrying Amount |  |  | Effective interest rate |  |  | Carrying Amount |
Fixed rate instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Time deposits |  |  | 23 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
USD |  |  |  |  |  |  | 5.8 | % |  |  | 2,590,025 |  |  |  | 3.6 | % |  |  | 2,817,650 |
EUR |  |  |  |  |  |  | 2.2 | % |  |  | 1,069,303 |  |  |  | 2.0 | % |  |  | 1,383,978 |
TL |  |  |  |  |  |  | 14.3 | % |  |  | 436,224 |  |  |  | 11.0 | % |  |  | 1,243,843 |
Other |  |  |  |  |  |  | 12.9 | % |  |  | 13,036 |  |  |  | 11.1 | % |  |  | 36,175 |
Restricted cash |  |  | 22 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
USD |  |  |  |  |  |  | — |  |  |  | 64,503 |  |  |  | — |  |  |  | — |
EUR |  |  |  |  |  |  | — |  |  |  | 118,983 |  |  |  | — |  |  |  | — |
TL |  |  |  |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other |  |  |  |  |  |  | — |  |  |  | 320 |  |  |  | — |  |  |  | — |
Finance lease obligations |  |  | 27 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
USD |  |  |  |  |  |  | 28.1 | % |  |  | (41 | ) |  |  | 20.7 | % |  |  | (80 | )
EUR |  |  |  |  |  |  | 3.4 | % |  |  | (116,797 | ) |  |  | 3.4 | % |  |  | (48,034 | )
TL |  |  |  |  |  |  | 27.6 | % |  |  | (5,882 | ) |  |  | — |  |  |  | — |
Unsecured bank loans |  |  | 27 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TL fixed rate loans |  |  |  |  |  |  | 14.7 | % |  |  | (1,620,391 | ) |  |  | 12.1 | % |  |  | (1,819,944 | )
UAH fixed rate loans |  |  |  |  |  |  | 13.9 | % |  |  | (520,933 | ) |  |  | 15.0 | % |  |  | (407,171 | )
Secured bank loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BYN fixed rate loans |  |  |  |  |  |  | 11.6 | % |  |  | (4,390 | ) |  |  | 11.9 | % |  |  | (5,634 | )
Trade and other payables |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EUR fixed rate payables |  |  | 31 |  |  |  | — |  |  |  | — |  |  |  | 2.6 | % |  |  | (1,522,615 | )
Debt securities issued |  |  | 27 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
USD |  |  |  |  |  |  | 5.8 | % |  |  | (1,875,521 | ) |  |  | 5.8 | % |  |  | (1,683,700 | )
TL |  |  |  |  |  |  | — |  |  |  | — |  |  |  | 10.7 | % |  |  | (238,956 | )
Variable rate instruments |  |  | 27 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
USD floating rate loans |  |  |  |  |  |  | 3.2 | % |  |  | (2,880,615 | ) |  |  | 3.2 | % |  |  | (1,984,533 | )
EUR floating rate loans |  |  |  |  |  |  | 2.1 | % |  |  | (5,511,579 | ) |  |  | 2.3 | % |  |  | (3,593,110 | )
| (*) | Includes 4.5G license payables related to the frequency bands which the Company has been awarded with. The last instalment of 4.5G license payable amounting to TL 1,534,702 was paid on 26 April 2017.
Sensitivity analysis Cash flow sensitivity analysis for variable rate instruments: An increase/decrease of interest rates by 100 basis points would have (decreased)/increased equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign exchange rates, remain constant. The analysis is performed on the same basis at 31 December 2017 and 2016:
|  | Profit or loss |  |  | Equity |
|  | 100 bps increase |  |  | 100 bps decrease |  |  | 100 bps increase |  |  | 100 bps decrease |
31 December 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Variable rate instruments (financial liability) |  |  | (83,922 | ) |  |  | 83,922 |  |  |  | — |  |  |  | — |
Cash flow sensitivity (net) |  |  | (83,922 | ) |  |  | 83,922 |  |  |  | — |  |  |  | — |
31 December 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Variable rate instruments (financial liability) |  |  | (55,776 | ) |  |  | 55,776 |  |  |  | — |  |  |  | — |
Cash flow sensitivity (net) |  |  | (55,776 | ) |  |  | 55,776 |  |  |  | — |  |  |  | — |
Fair values Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level is as follows:
| • |  | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
| • |  | Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
| • |  | Level 3 inputs are unobservable inputs for the asset or liability.
|  | Fair values
|  | 31 December 2017 |  |  | 31 December 2016 |  |  | Fair value hierarchy |  |  | Valuation techniques
FX swap contracts |  |  | (4,675 | ) |  |  | 611 |  |  |  | Level 2 |  |  | Present value of the estimated future cash flows based on observable yield curves and end period FX rates
Participating cross currency swap contracts (*) |  |  | 950,862 |  |  |  | 382,054 |  |  |  | Level 3 |  |  | Present value of the estimated future cash flows based on unobservable yield curves and end period FX rates
Currency forward contracts |  |  | (2,246 | ) |  |  | (1,286 | ) |  |  | Level 2 |  |  | Forward exchange rates at the balance sheet date
| (*) | Participating cross currency swap contracts include EUR-TL interest and currency swap contracts, EUR put and call options, amounting to nominal value of EUR 560,000 and also USD-TL interest and currency swap contracts and put and call options amounting to nominal value of USD 400,000 in total. The EUR-TL participating cross currency swap contracts, which are EUR 100,000, EUR 150,000 and EUR 250,000, was combined into one contract as of 26 May 2017 and the maturity of the contracts was extended to 23 October 2025. Additionally, cross currency swap contracts include EUR-TL interest and currency swap contracts nominal value of EUR 43,585 and USD-TL interest and currency swap contracts amounting to nominal value of USD 298,611 in total. Cross currency swap contracts include EUR-TL, cross currency swap contracts nominal value of EUR 184,900 and USD-TL currency swap contracts amounting to nominal value of USD 238,400 in total. Regarding these contracts, TL 92,384 accrual of interest expense and TL 19,731 accrual of interest income has been reflected to consolidated financial statements as at 31 December 2017 (31 December 2016: TL 40,367 and TL 8,220 respectively). Since bid-ask spread is unobservable input; in valuation of participating cross currency swap contracts, prices in bid- ask price range which were considered the most appropriate were used instead of mid prices. If mid prices were used in the valuation the fair value of participating cross currency swap contracts would have been TL 129,870 lower as at 31 December 2017 (31 December 2016: TL 23,291).
There were no transfers between fair value hierarchy levels during the year. Movements in the participating cross currency swap contracts for the years ended 31 December 2017 and 31 December 2016 are stated below:
|  | 31 December 2017 |  |  | 31 December 2016 |
Opening balance |  |  | 382,054 |  |  |  | — |
Fair value gains recognized in profit or loss |  |  | 568,808 |  |  |  | 382,054 |
Closing balance |  |  | 950,862 |  |  |  | 382,054 |
Valuation inputs and relationships to fair value The following table summarizes the quantitative information about the significant unobservable inputs used in level 3 fair value measurement of contingent consideration.
|  | Fair value at |  | Inputs |  |
|  | 31 December 2017 |  |  | 31 December 2016 |  |  | Unobservable Inputs |  | 31 December 2017 |  | 31 December 2016 |  | Relationship of unobservable inputs to fair value
Contingent consideration |  |  | 323,691 |  |  |  | 295,062 |  |  | Risk-adjusted discount rate |  | 4.8% |  | 5.6% |  | A change in the discount rate by 100 bps would increase/decrease FV by TL (9,834) and TL 10,241 respectively.
|  |  |  |  |  |  |  |  |  | Expected settlement date |  | first quarter of 2021 |  | first quarter of 2020 |  | If expected settlement date changes by 1 year FV would increase/decrease by TL (14,884) and TL 15,602 respectively.
Changes in the consideration payable in relation to acquisition of Belarusian Telecom for the years ended 31 December 2017 and 31 December 2016 are stated below:
|  | 2017 |  |  | 2016 |
Opening balance |  |  | 295,062 |  |  |  | 235,281 |
Gains recognized in profit or loss |  |  | 28,629 |  |  |  | 59,781 |
Closing balance |  |  | 323,691 |  |  |  | 295,062 |
Financial assets: Carrying values of significant portion of financial assets do not differ significantly from their fair values due to their short-term nature. Financial liabilities: Fair values of financial liabilities are assumed to approximate their carrying values due to their short term nature and floating interest rates. As at 31 December 2017, the fair value of debt securities issued by the Company with a nominal value of USD 500,000 and fixed interest rate (Note 27), is TL 2,063,972. As at 31 December 2016, the fair value of debt securities issued by the Company and Turkcell Finansman, with a nominal value of USD 500,000 and TL 500,000 comparatively, and fixed interest rate (Note 27), is TL 1,921,199.

X
- Definition The entire disclosure for financial instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2017-01-01 -Section Scope -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=7&date=2017-03-01&anchor=sect_Scope&doctype=Standard -URIDate 2017-03-09 + Details
Name: | ifrs-full_DisclosureOfFinancialInstrumentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Text block1 [abstract] + References No definition available. + Details
Name: | tkc_TextBlock1Abstract
Namespace Prefix: | tkc_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration