BUS 310 TERM PROJECT

Company Backgrounds:

Keretivas:

Kerevitas is a subsidiary of Yıldız Holding. It is the leading company at Turkish frozen food and margarine markets. Superfresh, Bizim,
Terem, Sabah, Yayla, Luna, Ustam and Halk are among the brands of the company. Superfresh is the leading frozen food brand in
Turkey with 47 % market share. It was established in Bursa back in 1977 and exported seafood, then it expanded its operations to
today’s industries. The annual sales value of frozen food arm is 1.9 billion Turkish Liras as of 2020 with a growth of 51 % on annual
basis, thanks for the pandemic’s rising demand factor. Most desired product categories are meat, pizza, french fries and croquettes
and rolls, collectively they constitute 61 % of the sales. The annual sales value of margarine sales is 1.4 billion Turkish Liras as of 2020
with a growth of 20 % on annual basis. Besler is the leader of the market with 65 % market share (Kerevitas, 2021)

Unilever:

Unilever is a fast-moving consumer goods company which focuses on hygiene, laundry, prestige, personal care, in home and out of
home food consumption brands. Totally, Unilever has 51 billion Euro of annual turnover. In home food consumption brands,
personal care and hygiene constitutes around 75 % of annual sales. Algida, Ben & Jerries, Domestos, Cif, Rexona, Persil, Clear, Dove,
Knorr, Axe, Lipton and Omo are among brands of Unilever. The company’s vision is to be the global leader in sustainable business. It
aims for having brands with purpose grow and have companies with purposes. It has a powerful portfolio with brand names that
might be very hard to differentiate the brand from the category just like saying Omo instead of hygiene products. Unilever claims
that it is the market leader in India, Indonesia, Turkey, Pakistan and United Kingdom while it is the fourth largest brand in China and
seventh largest brand in USA (Unilever, 2021)

1
IFRS and IAS Rules Explanation at Kerevitas and Unilever’s 2020 Financial Full Year Annual Reports

IFRS and IAS Rules Description Unilever (Unilever, Kerevitas (Kerevitas, Is aligned with the
2021) 2021) ruleset?
IAS 2 - Inventory Costing Lower weighted average It is written at the page Inventory costs are They are both
costs also cover direct 140 of Unilever Annual calculated by the lower aligned with the
costs as well as Report in 2020 at the weighted average cost ruleset
attributable production footnote number 12. according to the
overheads. Net footnote number 2 at
realizable value is set by page 20 in Kerevitas
the selling price less the Annual Report in 2020.
estimated cost.
IAS 38 – Recognition of An intangible asset It is written at page 134 At page 22 of the Annual They are both
Intangible Assets might only be recognized of the Annual report by Report, Kerevitas aligned with the
by the company as an the footnote number 9. explains its intangible ruleset
asset if there are future Although there are asset policy by stating
economic benefits and indefinite life and the economic benefit
the cost of the asset can definite life assets, period for an asset
be measured reliably. Unilever records them at would be 2-15 years and
There are cost and their fair value to the states their intangible
revaluation models. financial tables and assets are easy to
expenditures are at PL convert to economic
table. value.
IAS 16 – Valuation of A valuation of such It is measured at the According to the They are both

2
Plant, Property and assets should be made cost including borrowing footnote 10 at Annual aligned with the
Equipment by cost model or costs less depreciation Report, Kerevitas does ruleset
revaluation model. Plant, for Unilever according to not recognize sales
property, and equipment the footnote number 10. profit’s deduction from
are also subject to For owned assets of plant property and
amortization. plant and equipment the equipment expenses.
Recognition of assets will amortization period Valuations are made
be on carrying prices. differs from 2 to 20 with straight line
years. Depreciation is on amortization and
straight line basis. residual values are
Residual values are calculated annually. For
calculated annually. plant and equipment,
the amortization differs
from 3 to 50 years. It is
at footnote 10.
IFRS 5 – Classification of Management should be In page 117, Unilever If the company decides Unilever is not
an asset to be on sale committed for sale, the states that disposal of to sell its assets the aligned with the
asset’s sale shall be any asset of the financial profit is ruleset while
immediate, there is an company is a financial calculated by subtracting Kerevitas is.
active search for a buyer. decision and the group the fair value from the
The disposal of the asset recognizes any profit or sales price and recorded
should be via sale of the loss from the sales to the PL table. Disposals
asset. compared with the fair are classified in three
value to the PL categories and each

3
 statement. They are category is divided
classified at the according to the pricing
operating profit. methodology that is
Disposals might be with applied to record the fair
sales of the asset or values of the assets in
repayment of the footnote 10.
capital.
IAS 23 – Borrowing Financial leases and All the borrowing costs All credits are recorded They are both
Costs foreign exchange profit are recognized based on with currency exchange aligned with the
and losses on the effective interest rate differences as ruleset
borrowings are regarded method according to additional expense or a
as financial expenses footnote 5 in the Annual gain at the borrowings
that might be added to Report. Foreign footnote of 27. Financial
the borrowing costs. exchange profit and leases are calculated as
losses are recorded as their market value by
additional expenses on the end of the reporting
borrowing costs. period.

Bibliography
 Unilever. (2021, February 4). Unilever Investor Relations. Retrieved from Unilever Corporate Affairs:
https://www.unilever.com/Images/unilever-q4--and-full-year-2020-results-presentation_tcm244-558978_1_en.pdf
 Kerevitas. (2021, June 30). Kerevitas Investor Relations. Retrieved from Kerevitas Corporate Affairs:
https://www.kerevitas.com.tr/documents/assets/pdf/Investor_Presentation_30.06.2021.pdf
 Unilever. (2021). 2020 FY Annual Report and Accounts. Rotterdam: Unilever.

4
 Kerevitas. (2021). 2020 Yılı Mali Tablo ve Dipnotlar. Istanbul: Kerevitas.