110 / 113
New or Amended
Standards
Summary of theMost Significant Amendments
Impact on the Financial State-
ments
Egyptian -Standard
No. (42):
TheConsolidated
Financial Statements
•
The newEgyptian Accounting Standard No. (42) “The Con-
solidated Financial Statements” was issued and accordingly
Egyptian Accounting Standard No. (17) “The Consolidated
and Separate Financial Statements” has changed to become
“The Separate Financial Statements”.
•
Pursuant to the newEgyptian Accounting Standard No. (42)
“The Consolidated Financial Statements”
•
The control model has changed to determine the investee
entity that must be consolidated.
•
Accounting for the changes in the equity of the parent
company in a subsidiary which don’t lead to loss of control
are accounted for as transactions of equity.
•
Any Investment quotes retained in a former subsidiary
re-measured at fair value at the date when control is lost and
recognize any resulting difference in the Income Statement.
•
In case of losses applicable to the Non-Controlling Interest
“NCI” in a subsidiary aremore than its share in equity
including all component of Other Comprehensive Income
are allocated to the owners of the holding entity and the NCI
even if this causes the NCI to have a deficit balances.
There is no impact to the com-
parative figures in the financial
statements.
This amendment doesn’t apply
retroactively
Egyptian Standard
No.(43):
Joint Arrangements
•
The newEgyptian Accounting Standard No. (43) “Joint
Arrangements” was issued and accordingly Egyptian
Accounting Standard No. (27) “Interests in Joint Ventures”
was replaced.
•
According to the newEgyptian Accounting Standard No.
(43) “Joint Arrangements” a newmodel for the joint arrange-
ments was laid down in order to classifies and determine
their kindwhether (Joint Venture) or (Joint Operation).
•
As such, action depends on the substance of the arrange-
ment and not only its legal form.
•
In case the arrangement is classified as a joint venture, each
party of the arrangement parties shall account for that
investment using the equitymethod only (as the propor-
tionate consolidationmethodwas eliminated) whether in
the Consolidated or separate Financial Statements issued
thereby.
There is no impact to the presented
financial statements figures upon
these amendments.
Egyptian Standard
No. (18):
Investments in
Associates
The accounting treatment of the joint ventures shall be added to
this standard, accordingly the Investments in associates and joint
ventures shall be accounted for that investments using the equity
method in the Consolidated and Individual Financial Statements.
•
The entity shall discontinue to use the Equitymethod from
the date when its investment ceases to be an associate or a
joint venture provided that the retained interest shall be
re-measured using the fair value and the difference shall be
recognized in the Income Statement.
•
If an investment in an associate becomes an investment in a
joint venture or vice versa, the entity continues to apply the
EquityMethod and does not re-measure the retained Interest.
•
If an entity’s ownership interest in an associate or a joint
venture reduced, but the entity continues to apply the Equity
Method, the entity shall reclassify to profit or loss the propor-
tions of the gain or loss that previously been recognized in
OCI relating to that reduction inOwnership interest.
There is no impact to the presented
financial statements figures upon
these amendments.
There is no impact to the presented
financial statements figures upon
these amendments.
2016 ANNUAL REPORT
108
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)