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Financial instruments (Tables)

12 Months Ended

Dec. 31, 2021

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is:


		2021	2020
Trade receivables	20	4,443,371	3,688,248
Contract assets	22	1,247,741	1,100,166
Receivables from financial services	21	2,152,185	1,962,098
Cash and cash equivalents (*)	25	18,628,481	11,860,376
Derivative financial instruments	36	2,131,070	917,437
Other current & non-current assets (**)	24	195,050	124,822
Financial assets at amortized cost	26	4,164	172,363
Financial assets at fair value through other comprehensive income	26	1,427,811	529,610
Due from related parties	40	145,095	16,476
		30,374,968	20,371,596

(*)

Cash in hand is excluded from cash and cash equivalents.

(**) Prepaid expenses, VAT receivable, receivable from the Ministry of Transport and Infrastructure of Turkey and advances given are excluded from other current assets and other non-current assets.

Summary of Maximum Exposure to Credit Risk for Trade and Subscriber Receivables, Other Assets and Cash and Cash Equivalent Arising from Sales Transactions Including those Classified as Due from Related Parties

The maximum exposure to credit risk for trade and subscriber receivables, other assets and cash and cash equivalent arising from sales transactions, including those classified as due from related parties at the reporting date by type of customer is:

Less

Less Than

Than 60

Than 90

Less Than

Other assets at

30 Days Past

Days Past

120 Days

150 Days

3 years Past

4 years

5 years

31 December 2021 (*)

Not Due

Due

Past Due

Due

Past Due

Total

Gross Carrying Amount

25,748,284

324,138

123,488

56,496

38,589

43,037

741,625

380,437

156,598

27,612,692

Loss Allowance

75,924

8,572

5,917

5,401

4,848

5,979

239,104

223,341

68,564

637,650

(*) Other Assets includes trade receivables, subscriber receivables, derivative financial instruments, financial assets, other assets, cash and cash equivalent and due from related parties.

Less

Less Than

Than 60

Than 90

Less Than

Contract assets at

30 Days Past

Days Past

120 Days

150 Days

3 years Past

4 years

5 years

31 December 2021

Not Due

Due

Past Due

Due

Past Due

Total

Gross Carrying Amount

1,253,982

—

1,253,982

Loss Allowance

6,241

—

6,241

37. Financial instruments (continued)

Credit quality: (continued)

Less

Other assets from financial

Less Than

Than 60

Than 90

Less Than

services at 31 December 2021

30 Days Past

Days Past

120 Days

150 Days

3 years Past

4 years

5 years

(**)

Not Due

Due

Past Due

Due

Past Due

Total

Gross Carrying Amount

1,878,048

232,589

20,374

9,861

11,571

5,819

75,940

5,963

4,114

2,244,279

Loss Allowance

12,294

2,163

296

156

5,511

3,142

58,471

5,947

4,114

92,094

(**) Other Assets includes trade receivables and subscriber receivables from financial services.

Less

Less Than

Than 60

Than 90

Less Than

150 Days -

Less Than

Other assets at

30 Days Past

Days Past

120 Days

150 Days

3 years Past

3 - 4 years

4 - 5 years

1 January 2021 (*)

Not Due

Due

Past Due

Due

Past Due

Total

Gross Carrying Amount

16,188,078

296,758

62,726

45,682

36,112

31,368

727,462

290,736

257,790

17,936,712

Loss Allowance

71,273

5,042

3,148

3,726

5,334

5,947

250,393

163,799

118,718

627,380

(*) Other Assets includes trade receivables, subscriber receivables, derivative financial instruments, financial assets, other assets, cash and cash equivalent and due from related parties.

Less

Less Than

Than 60

Than 90

Less Than

Contract assets at

30 Days Past

Days Past

120 Days

150 Days

3 years Past

4 years Past

5 years Past

1 January 2021

Not Due

Due

Past Due

Due

Past Due

Total

Gross Carrying Amount

1,105,409

—

1,105,409

Loss Allowance

5,243

—

5,243

Less

Less Than

Than 60

Than 90

Less Than

Other assets from financial

30 Days Past

Days Past

120 Days

150 Days

3 years Past

4 years Past

5 years Past

services at 1 January 2021 (**)

Not Due

Due

Past Due

Due

Past Due

Total

Gross Carrying Amount

1,798,720

109,724

22,023

8,714

7,021

6,044

157,821

5,479

1,100

2,116,646

Loss Allowance

11,483

1,192

407

204

3,483

3,146

128,084

5,449

1,100

154,548

(**) Other Assets includes trade receivables and subscriber receivables from financial services.

Summary of Movements in Provision for Impairment of Receivables from Financial Services, Trade Receivables and Due from Related Parties

Movements in the provision for impairment of trade receivables, contract assets, other assets and due from related parties are as follows:


	31 December	31 December
	2021	2021
	Contract Asset	Other Asset
Opening balance	5,243	627,380
Provision for impairment recognized during the year	998	459,711
Amounts collected	—	(200,225)
Receivables written off during the year as uncollectible	—	(300,405)
Disposal of subsidiaries	—	—
Exchange differences	—	51,189
Closing balance	6,241	637,650

37. Financial instruments (continued)

Impairment losses (continued)


	31 December	31 December
	2020	2020
	Contract Asset	Other Asset
Opening balance	4,690	627,578
Provision for impairment recognized during the year	553	452,506
Amounts collected	—	(153,674)
Receivables written off during the year as uncollectible	—	(300,119)
Disposal of subsidiaries	—	(49)
Exchange differences	—	1,138
Closing balance	5,243	627,380

Movements in the provision for impairment of trade receivables, subscriber receivables, other assets and cash and cash equivalents from financial services are as follows:


	31 December	31 December
	2021	2020
Opening balance	154,548	163,500
Provision for impairment recognized during the year	66,678	126,246
Amounts collected	(56,000)	(76,036)
Exchange differences	—	(96)
Unused amount reversed (*)	(73,132)	(59,066)
Closing balance	92,094	154,548

(*)

Turkcell Finansman signed a transfer of claim agreement with a debt management company to transfer some of its doubtful receivables stemming from the years 2016 and 2020. Transferred doubtful receivables comprise of balances that Turkcell Finansman started legal proceedings for.

Summary of Analysis of Group's Financial Liabilities into Relevant Maturity Groupings Based on Contractual Maturities

The table below analyses the Group’s financial liabilities by considering relevant maturity groupings based on their contractual maturities for:

●

all non-derivative financial liabilities, and

●

gross settled derivative financial instruments for which contractual maturities are essential for an understanding of the timing of the cash flows,


	31 December 2021							31 December 2020
	Carrying	Contractual	6 months	6-12	1-2	2-5	More than 5	Carrying	Contractual	6 months	6-12	1-2	2-5	More than 5
	Amount	cash flows	or less	Months	years	years	Years	Amount	cash flows	or less	months	years	years	Years
Non-derivative financial liabilities
Secured bank loans	512,879	(529,928)	(122,908)	(121,959)	(145,849)	(139,212)	—	295,804	(306,496)	(91,265)	(54,792)	(107,483)	(52,956)	—
Unsecured bank loans	19,950,956	(21,636,278)	(5,169,649)	(1,850,068)	(3,428,360)	(9,688,566)	(1,499,635)	11,829,178	(12,828,540)	(3,040,325)	(1,136,973)	(2,197,659)	(5,426,921)	(1,026,662)
Debt securities issued	13,408,433	(17,479,087)	(489,609)	(384,875)	(769,750)	(8,590,541)	(7,244,312)	7,362,554	(10,044,816)	(264,517)	(211,957)	(423,914)	(4,941,992)	(4,202,436)
Lease liabilities	2,905,865	(4,593,322)	(693,003)	(569,289)	(725,070)	(1,273,652)	(1,332,308)	2,098,886	(3,210,148)	(480,282)	(360,908)	(540,721)	(987,430)	(840,807)
Trade and other payables*	4,615,606	(4,812,238)	(4,808,900)	(3,338)	—	—	—	3,467,338	(3,611,158)	(3,609,779)	(430)	(949)	—	—
Due to related parties	65,156	(87,294)	(87,294)	—	—	—	—	40,355	(40,355)	(40,355)	—	—	—	—
Consideration payable in relation to acquisition of BeST and Boyut Enerji (Note 29)	761,536	(1,339,566)	—	—	(6,665)	(73,310)	(1,259,591)	475,879	(734,050)	—	—	—	(24,382)	(709,668)
Derivative financial liabilities
Participating Cross Currency Swap and FX swap contracts	71,325	159,206	20,366	19,747	20,922	98,171	—	119,111	(265,863)	(44,853)	(46,645)	(70,212)	(101,591)	(2,562)
Buy	—	2,633,924	286,409	287,361	539,356	1,520,798	—	—	3,077,236	792,428	363,174	579,502	1,055,551	286,581
Sell	—	(2,474,718)	(266,043)	(267,614)	(518,434)	(1,422,627)	—	—	(3,343,099)	(837,281)	(409,819)	(649,714)	(1,157,142)	(289,143)
TOTAL	42,291,756	(50,318,507)	(11,350,997)	(2,909,782)	(5,054,772)	(19,667,110)	(11,335,846)	25,785,685	(31,143,819)	(7,673,769)	(1,811,705)	(3,340,938)	(11,535,272)	(6,782,135)

Advances received, license fee accruals, taxes and withholding taxes payable are excluded from trade and other payables.

Summary of Group's Exposure to Foreign Exchange Risk Based Notional Amounts

The Group’s exposure to foreign exchange risk at the end of the reporting period, based on notional amounts, was as follows:


	31 December 2021
	USD	EUR	RMB
Foreign currency denominated assets
Other non-current assets	188	11	—
Financial asset at fair value through other comprehensive income	85,029	16,453	—
Due from related parties - current	—	13	—
Trade receivables and contract assets	14,729	20,135	—
Other current assets	10,297	5,931	14,079
Cash and cash equivalents	814,899	141,110	71,600
	925,142	183,653	85,679
Foreign currency denominated liabilities
Loans and borrowings - non-current	(302,607)	(504,992)	(344,052)
Debt securities issued - non-current	(942,374)	—	—
Lease obligations - non-current	(3,460)	(16,829)	—
Other non-current liabilities	(56,888)	—	—
Loans and borrowings - current	(89,379)	(205,687)	(102,395)
Debt securities issued - current	(55,938)	—	—
Lease obligations - current	(2,589)	(3,274)	—
Other current liabilities	(953)	(8,752)	—
Trade and other payables - current	(96,236)	(17,010)	(363,670)
Due to related parties	—	(305)	—
	(1,550,424)	(756,849)	(810,117)

Financial liabilities defined as hedging instruments	16,987	261,680	—
Exposure related to derivative instruments
Participating cross currency swap and FX swap contracts	244,583	32,022	167,476
Currency forward contracts	517,242	—	—
Net exposure	153,530	(279,494)	(556,962)

37. Financial instruments (continued)

Foreign exchange risk (continued)


	31 December 2020
	USD	EUR	RMB
Foreign currency denominated assets
Other non-current assets	69	11	—
Financial asset at fair value through other comprehensive income	8,848	64,956	—
Due from related parties - current	—	—	—
Trade receivables and contract assets	13,234	15,239	—
Other current assets	11,769	3,737	—
Cash and cash equivalents	1,061,644	85,856	4,801
	1,095,564	169,799	4,801
Foreign currency denominated liabilities
Loans and borrowings - non-current	(342,930)	(543,680)	(160,398)
Debt securities issued - non-current	(940,137)	—	—
Lease obligations - non-current	(6,822)	(17,000)	—
Other non-current liabilities	(64,829)	—	—
Loans and borrowings - current	(85,526)	(244,057)	(92,931)
Debt securities issued - current	(55,938)	—	—
Lease obligations - current	(721)	(3,598)	—
Trade and other payables - current	(174,039)	(23,944)	(487,738)
Due to related parties	—	(11)	—
	(1,670,942)	(832,290)	(741,067)

Financial liabilities defined as hedging instruments	—	164,634	—
Exposure related to derivative instruments
Participating cross currency swap and FX swap contracts	440,036	535,939	190,421
Currency forward contracts	256,118	—	—
Net exposure	120,776	38,082	(545,845)

Summary of Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurement of Contingent Consideration

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

December

Unobservable

December

Relationship of unobservable inputs to

2021

2020

Inputs

2021

2020

fair value

Contingent consideration

758,261

475,879

Risk-adjusted discount rate

6.8%-8.0%

4.3%- 5.6%

An increase/decrease in the discount rate by 100 bps would change FV by TL (51,092) and TL 55,485, respectively.

Expected settlement date

in instalments between 2026-2031

in instalments between 2025-2030

If expected settlement date extended/shortened by 1-year, FV would change by TL (53,167) and TL 57,145, respectively.

Financial liabilities


	Carrying	Fair
As at 31 December 2021:	amount	value
Bank loans	16,696,250	16,622,479
Debt securities	13,306,495	13,233,743


	Carrying	Fair
As at 31 December 2020:	amount	value
Bank loans	4,615,559	4,646,152
Debt securities	7,311,688	7,949,084

Consideration payable in relation to acquisition of Belarusian telecom [member]

Statement [LineItems]

Summary of Fair Value of Financial Assets and Financial Liabilities

Changes in the consideration payable in relation to acquisition of BeST for the years ended 31 December 2021 and 31 December 2020 are stated below:


	2021	2020
Opening balance	475,879	359,554
Losses recognized in profit or loss	282,382	116,325
Closing balance	758,261	475,879

Interest rate risk [member]

Statement [LineItems]

Sensitivity analysis for types of market risk

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 2021 and 2020:


	Profit or loss		Equity
	100 bps	100 bps	100 bps	100 bps
	increase	decrease	increase	decrease
31 December 2021
Variable rate instruments (financial liability)	(103,782)	103,782	—	—
Cash flow sensitivity (net)	(103,782)	103,782	—	—
31 December 2020
Variable rate instruments (financial liability)	(23,510)	23,510	—	—
Cash flow sensitivity (net)	(23,510)	23,510	—	—

Summary of Variable Interest-Bearing Financial Instruments


		31 December 2021			31 December 2020
		Effective			Effective
		Interest		Carrying	interest		Carrying
	Note	Rate		Amount	rate		Amount
Variable rate instruments
USD floating rate loans	30	3.1	%	(3,999,264)	3.2	%	(2,644,049)
EUR floating rate loans	30	2.3	%	(9,188,487)	2.2	%	(5,660,654)

Currency risk [member]

Statement [LineItems]

Sensitivity analysis for types of market risk


Sensitivity analysis
31 December 2021
	Profit/(Loss)		Equity
	Appreciation of	Depreciation of	Appreciation of	Depreciation of
	foreign currency	foreign currency	foreign currency	foreign currency

1- USD net asset/liability	191,136	(191,136)	—	—
2- Hedged portion of USD risk (-)	—	—	17,218	(20,995)
3- USD net effect (1+2)	191,136	(191,136)	17,218	(20,995)

4- EUR net asset/liability	(421,664)	421,664	—	—
5- Hedged portion of EUR risk (-)	—	—	24,020	(24,020)
6- EUR net effect (4+5)	(421,664)	421,664	24,020	(24,020)

7- Other foreign currency net asset/liability (RMB)	(116,071)	116,071	—	—
8- Hedged portion of other foreign currency risk (-) (RMB)	—	—	(1,960)	1,960
9- Other foreign currency net effect (7+8)	(116,071)	116,071	(1,960)	1,960
Total (3+6+9)	(346,599)	346,599	39,278	(43,055)

37. Financial instruments (continued)

Exposure to currency risk (continued)

Sensitivity analysis (continued)


Sensitivity analysis
31 December 2020
	Profit/(Loss)		Equity
	Appreciation of	Depreciation of	Appreciation of	Depreciation of
	foreign currency	foreign currency	foreign currency	foreign currency

1- USD net asset/liability	88,656	(88,656)	—	—
2- Hedged portion of USD risk (-)	—	—	(14,984)	14,984
3- USD net effect (1+2)	88,656	(88,656)	(14,984)	14,984

4- EUR net asset/liability	34,304	(34,304)	—	—
5- Hedged portion of EUR risk (-)	—	—	(79,669)	79,669
6- EUR net effect (4+5)	34,304	(34,304)	(79,669)	79,669

7- Other foreign currency net asset/liability (RMB)	(61,036)	61,036	—	—
8- Hedged portion of other foreign currency risk (-) (RMB)	—	—	(192)	192
9- Other foreign currency net effect (7+8)	(61,036)	61,036	(192)	192
Total (3+6+9)	61,924	(61,924)	(94,845)	94,845