MILLIRE_2019_Annual Report

248 Milli Re Annual Report 2019 Millî Reasürans Türk Anonim Şirketi NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2019 (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) Foreign currency translation differences Foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. As at December 31, 2019, foreign currency translation reserve amounting to TL 34.192.451 loss (December 31, 2018: TL 43.734.932 loss) stems from Singapore Branch whose functional currency is US Dollars. Valuation of financial assets As of December 31, 2019 and 2018, changes in fair values that stem from securities classified as available for sale financial assets that present share in capital and associates are detailed as below: December 31, 2019 December 31, 2018 Fair value reserves at the beginning of the period (38.392.942) 52.911.805 Change in the fair value during the period (Note 4.2) 140.101.037 (34.148.167) Deferred tax effect (Note 4.2) (5.099.087) 4.183.047 Net gains transferred to the statement of income (Note 4.2) 3.674.113 (78.640.548) Deferred tax effect (Note 4.2) (808.305) 17.300.921 Fair value reserves at the end of the period 99.474.816 (38.392.942) 16 Other reserves and equity component of discretionary participation As of December 31, 2019 and 2018, other reserves are explained in detail in Note 15 - Equity above. As of December 31, 2019 and 2018, the Group does not hold any insurance or investment contracts which contain a DPF. 17 Insurance contract liabilities and reinsurance assets Estimation of the ultimate payment for the outstanding claims is one of the most important accounting assumptions of the Company. Estimation of the insurance contract liabilities contains several ambiguities by nature. The Company makes calculation of the related insurance technical provisions accordance with the Insurance Legislation and reflects them into consolidated financial statements as mentioned in Note 2 - Summary of significant accounting policies .