MILLIRE_2019_Annual Report

253 Milli Re Annual Report 2019 Activities and Major Developments Related to Activities Financial Status Risks and Assessment of the Governing Body Unconsolidated Financial Statements Together with Independent Auditors’ Report Thereon Consolidated Financial Statements Together with Independent Auditors’ Report Thereon General Information Financial Rights Provided to the Members of the Governing Body and Senior Executives Research & Development Activities Millî Reasürans Türk Anonim Şirketi NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2019 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) (Currency: Turkish Lira (TL)) Corporate tax liabilities and prepaid taxes are disclosed below: December 31, 2019 December 31, 2018 Corporate tax liabilities (201.913.417) (106.996.427) Taxes paid during the period 137.083.224 142.657.523 Corporate tax assets, net (64.830.193) 35.661.096 Total amount of investment incentives which will be benefited in current and forthcoming periods None. 20 Financial liabilities 31 December 2019 31 December 2018 Expense accruals arising from derivative contracts (Note 13) (**) 59.472.753 2.877.823 Payables from operating leases (Note 34) (***) 58.175.787 - Short-term 3.620.551 - Medium and long-term 54.555.236 - Payables from repo transactions (*) - 50.700.491 Total 117.648.540 53.578.314 (*) As of the reporting date, there is no balance arising from cash loans and debts to money markets (As of December 31, 2018, the Company has financial debt amounting TL 50.700.491 arising from repo/Takasbank Money Market transactions). (**) As of December 31, 2019, the Group’s expense accrual details amounting to TL 59.472.753 arising from derivative contracts are explained in Note 13 (December 31, 2018: TL 2.877.823). (***) As of December 31, 2019, the Group’s operating leases are explained in the Note 34 - Financial Costs . 21 Deferred taxes As of December 31, 2019 and 2018, deferred tax assets and liabilities are attributable to the following:: December 31, 2019 December 31, 2018 Deferred tax assets/(liabilities)) Deferred tax assets/(liabilities)) Unexpired risk reserves 16.241.991 15.228.528 Provision for the pension fund deficits 10.643.391 8.947.362 Equalization reserves 53.535.621 41.127.247 Provisions for employee termination benefits 8.307.197 7.543.894 Other provisions 19.583.644 14.837.226 Subrogation provision 6.198.312 3.558.004 Discount of receivables and payables (336.314) 522.078 TAS adjustment differences in depreciation (10.658.223) (3.159.259) Profit commission accruals (2.723.769) (2.028.998) Subrogation receivables from third parties (6.931.925) (5.651.737) Valuation differences in financial assets (3.022.005) (15.377.031) Time deposits 91.793 192.055 Other 1.866.480 1.598.347 Valuation of real estate (63.004.554) (60.193.714) Deferred tax assets/(liabilities), net 29.791.639 7.144.002 As of December 31, 2019, the Group does not have deductible tax losses. (December 31, 2018: None.)