109 / 113
New or Amended
Standards
Summary of theMost Significant Amendments
Impact on the Financial State-
ments
EAS (10)
Property, Plant and
Equipment (PPE) and
its depreciations
•
The optionof using the revaluationmodel in the subse-
quentmeasurement of PPEhas beencanceled
.
•
The financial shall disclose amovement of the PPE and its
depreciations in the notes accompanying the financial state-
ments at the beginning and the end of the current period
and the comparable period.
•
The strategic (major) spare parts and stand-by equipment
can be classified as PPEwhen the entity expects to use them
for more than one period (when the definition of PPE applies
thereto).
The amendment does not apply
retroactively, and the carrying
amounts in the transitional date
is the cost and the accumulated
depreciation at the beginning
of the application of this revised
standard.
It has been re-presenting the
comparative figures related to the
PPE in the notes accompanying
the financial statements to be in
conformity with the required
amendments on the standard.
EAS (23)
IntangibleAssets
The optionof using the revaluationmodel in the subsequent
measurement of intangible assets has beencanceled.
The amendment on the standard
has no impact on the figures
presented in the financial state-
ments.
Egyptian Standard
No. (45)
FairValueMeasure-
ment
ThenewEgyptianAccountingStandardNo. (45) “FairValue
Measurement”was issuedand shall be appliedwhenanother
Standard requires or allowsmeasurement or disclosure tobe
made at fair value.
This Standardaims the following:
(a) Defining the fair value
(b) Laying down a framework tomeasure the fair value in one
Standard and
(c) Identifying the disclosure required for the fair value
measurements.
The standard has been applied
prospectively in the preparation of
financial statements in December
31, 2016, including the disclosure
contained in this standard require-
ments.
Egyptian Standard
No. (29)
BusinessCombination
Thepurchasemethodwas cancelledand replacedby the
acquisitionmethod; as results:
1.
Changing the acquisitioncost tobecome the cashconsid-
eration transferred; and tobemeasuredat fair value at the
acquisitiondate.
2.
Contingent consideration: the fair value of the contingent
consideration shall be recognizedat the acquisitiondate as a
part of consideration transferred.
3.
Changing themethodofmeasuring goodwill incase of Step
acquisition ismade.
•
The transaction cost (the cost related to the acquisition):
Shall be charged to the Income Statement as an expense
in the period inwhich the costs incurred it and shall not
be added to the cash consideration transferred; except for
the costs of issuing equity instrument or debt instruments
directly related to the acquisition process.
This amendment Standard applied
for all business combinationwhich
its acquisition date on or after
the beginning of January 2016,
therefore no adjustment made
for assets and liabilities which
arising frombusiness combination
acquired before the beginning of
January 2016.
2016 ANNUAL REPORT
107
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)