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GB Auto and its subsidiaries (S.A.E.)
Notes to the consolidated financial statements For the financial Year ended December 31, 2014
(In the notes all amounts are shown in Thousand Egyptian Pounds unless otherwise stated)
The Group has financial leased assets (trailers and buses) according to contracts under Law No. 95 for 1995, that is not considered
as property, plant and equipment according to the accounting policy (2/I) and according to the requirement of the Egyptian Ac-
counting Standard (No.20), according to, the annual lease payments are recognized as an expense in the income statement for the
year. and the leased contracts are as follows:
December
31, 2014
December
31, 2013
Total contractual lease payments
8 004
16 469
Total purchase price on termination of leases
23
40
Average contracts life
5 Years
5 Years
lease payments for the year
2 870
3 367
Financial leased assets
Property, plant and equipment include assets financially leased to others, under contracts which are subject to the provisions of the
Law No. 95 for 1995, and it recognized as fixed assets as follows:
December
31, 2014
December
31, 2013
Cost
1 351 070
628 559
Accumulated depreciation
(191 382)
(126 349)
Net book value
1 159 688
502 210
6. Intangible assets
Goodwill
Computer
software
Knowhow
Total
Cost
Balance at January 1, 2014
276 136
18 498
5 703
300 337
Foreign currency translation differences
2 823
-
-
2 823
Additions
-
1 262
-
1 262
Balance at December 31, 2014
278 959
19 760
5 703
304 422
Accumulated amortization
Balance at January 1, 2014
-
14 616
5 703
20 319
Amortization charge
-
1 647
-
1 647
Balance at December 31, 2014
-
16 263
5 703
21 966
Net book value at December 31, 2014
278 959
3 497
-
282 456
Net book value at December 31, 2013
276 136
3 882
-
280 018
Goodwill
• On March 28, 2007, the Company and its subsidiaries fully acquired the shares of Cairo Individual Transport Industries “CITI”
by acquiring 49.03% which were owned by the minority at a value of EGP 209 997, in return of acquiring shares of GB Auto
share capital increase (Note 22-C). The acquisition resulted in a goodwill amounting to EGP 177 million which represents the
increase in the acquisition value over the book value of the acquired Company’s acquired assets. This goodwill has been al-
located as an asset of the business of two and three wheels segment.
• On September 8, 2008, the Company and its subsidiaries fully acquired the shares of GB for Capital Lease (S.A.E) which its
business is financial leasing with all its fields, and the acquisition resulted in goodwill amounted to EGP 1 m.
• During November 2010, the Group entered into 50% investment as a joint venture agreement in Almajmoa Alalamia Litijaret
Alsaiarat (GK), in Jordan, to acquire the existing business of Hyundai Vehicles Agency in Iraq, the joint venture agreement
gives the group the power to govern the financial and operating policies of (GK). and as a result of this investment the group
recognized a goodwill.
Ghabbour Auto | 2014 ANNUAL REPORT
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