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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)
Impairment test of goodwill
The company assesses annually the impairment of goodwill at December 31, to insure whether the carrying amount of the
goodwill is fully recoverable, unless there are indicators required to test the impairment through the year.
Goodwill is allocated to the Group’s cash generating units according to operating segments as presented below,
December
31, 2014
December
31, 2013
Two and three wheels
177 375
177 375
Hyundai Iraq sales
100 584
97 761
Financial leasing activity
1 000
1 000
278 959
276 136
Impairment of goodwill is assessed based on value in use, which is determined using the expected discounted cash flows
based on estimated budgets approved by the Board of Directors covering five years period. The management is preparing
these estimated budgets based on the financial, operating and market performance in the previous years and its expectations
for the market development.
7. Long-term notes receivables
December
31, 2014
December
31, 2013
Long-term notes receivable ( Note 12)
359 759
177 571
Interest income on installment sales
(82 703)
(31 219)
Net present value for long-term notes receivable
277 056
146 352
Allowance for impairment of notes receivable
(2 159)
(470)
Net
274 897
145 882
8. Deferred tax assets and liabilities
Total
Fixed and
Intangible
Assets
Carried
forward
losses
Inventory
Provision
Warranty
Provision
Legal
Claims
Provision
December
31, 2014
December
31, 2013
A. Deferred tax assets
Balance at January 1,
70
4 056
12 008
4 741
395
21 270
19 089
Opening balance reclassification
(48)
1 139
(6 263)
3 786
1 386
-
-
Balance at January 1, after classification
22
5 195
5 745
8 527
1 781
21 270
19 089
Charged to the income statement
(11)
2 655
2 911 10 438 (1 746)
14 247 2 181
Balance at the end of the year
11 7 850 8 656 18 965
35 35 517 21 270
B. Deferred tax liabilities
Balance at January 1,
(66 839)
-
-
-
- (66 839) (55 123)
Charged to the income statement
(18 625)
-
-
-
- (18 625) (11 716)
Balance at the end of the year
(85 464)
-
-
-
- (85 464) (66 839)
Net deferred tax liabilities
(85 453)
7 850 8 656 18 965
35 (49 947) (45 569)
C. Net Deferred tax
Balance at January 1,
(66 817)
5 195 5 745 8 527 1 781 (45 569) (36 034)
Charged to the income statement
(18 636)
2 655
2 911 10 438 (1 746)
(4 378)
(9 535)
Balance at the end of the year
(85 453)
7 850 8 656 18 96
35 (49 974) (45 569)
Ghabbour Auto | 2014 ANNUAL REPORT
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