105 / 113
Held-to-maturity financial assets
These assets are initiallymeasured at fair value plus any directly attributable transaction costs. Subsequent to initial recogni-
tion, they aremeasured at amortised cost using the effective interest method.
Loans and receivables
These assets are initiallymeasured at fair value plus any directly attributable transaction costs. Subsequent to initial recogni-
tion, they aremeasured at amortised cost using the effective interest method.
Available-for-sale financial assets
These assets are initiallymeasured at fair value plus any directly attributable transaction costs. Subsequent to initial recogni-
tion, they are measured at fair value and changes therein, other than impairment losses and foreign currency differences on
debt instrument are recognised inOCI and accumulated in the fair value reserve.When these assets are derecognised, the gain
or loss accumulated in equity is reclassified to profit or loss.
3 Non-derivative financial liabilities –Measurement
Afinancial liability is classified as at fair value through profit or loss if it is classified as held
‑
for
‑
trading or is designated as such
on initial recognition. Directly attributable transaction costs are recognised inprofit or loss as incurred. Financial liabilities at
fair value through profit or loss aremeasured at fair value and changes therein, including any interest expense, are recognised
in profit or loss.
Other non
‑
derivative financial liabilities are initially measured at fair value less any directly attributable transaction costs.
Subsequent to initial recognition, these liabilities aremeasured at amortised cost using the effective interest method.
N Share capital
1 Ordinary Shares
Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity. Income tax
relating to transaction costs of an equity transaction are accounted for in accordance with EAS No. (24) “Income Tax”.
2 Repurchase and reissue of ordinary shares (treasury shares)
When shares recognised as equity are repurchased, the amount of the considerationpaid, which includes directly attributable
costs is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a de-
duction fromequity.When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase
in equity and the resulting surplus or deficit on the transaction is presentedwithin share premium.
O Impairment
1 Non-derivative financial assets
Financial assets not classified as at fair value through profit or loss, including an interest in an equity
‑
accounted investee, are
assessed at each reporting date to determine whether there is objective evidence of impairment.
Objective evidence that financial assets are impaired includes:
• default or delinquency by a debtor;
• restructuring of an amount due to the Group on terms that the Groupwould not consider otherwise;
• indications that a debtor or issuer will enter bankruptcy;
• adverse changes in the payment status of borrowers or issuers;
• the disappearance of an activemarket for a security because of financial difficulties; or
• observabledata indicating that there is ameasurabledecrease in the expectedcash flows froma groupof financial assets.
For an investment in an equity security, objective evidence of impairment includes a significant or prolonged decline in its fair
value below its cost. The Group considers a decline of 20% to be significant and a period of ninemonths to be prolonged.
2016 ANNUAL REPORT
103
GB Auto (S.A.E.)
Notes to the consolidated financial statements for the financial year ended December 31, 2016
(In thenotes all amounts are shown inThousandEgyptianPounds unless otherwise stated)