GB AR16 E - v25 (single pages)

New or Amended

Standards

Summary of theMost Significant Amendments

Impact on the Financial State-

ments

EAS (25)

Financial Instru-

ments: Presentation

Any financial instrument with a resale right shall be classified

as an equity instrument instead of classifying it as a financial

liability; if it meets the conditions in accordance with the

paragraphs (16 A or 16 b) or paragraphs (16 c and 16 d) of the same

Standard, from the date the instrument has all the features and

meets all the conditions set out in those paragraphs.

An entity shall re-classify the financial instrument from the

date the instrument ceases to have all the features or meet all

conditions set out in those paragraphs.

There is no impact to the presented

financial statements figures upon

these amendments.

EAS (40)

Financial Instru-

ments: Disclosures

•

AnewEgyptianAccountingStandardNo. (40) “Financial

Instruments: Disclosures”was issued including all the

disclosures required for thefinancial instruments.

•

Accordingly, EAS (25) was amended by separating the

disclosures from it. The name of the Standard became

“Financial Instruments: Presentation” instead of “Financial

Instruments: Presentation and Disclosure”

Retroactive amendment to all the

comparative figures of the pre-

sented disclosures carried out.

V The impact of special accounting treatment to deal with the effects of liberalization of foreign exchange

rates:

The Company’smanagement has applied some of the special accounting treatments listed in Appendix A of Egyptian Account-

ing StandardNo. 13, amended in 2015, “Effects of Changes inForeignExchange Rates” issued on 7 February 2017 by theMinister

of Investment DecisionNo. (16) of 2017, Accounting for dealingwith the effects of the f loatation of foreign exchange rates, these

treatments are as follows:

First, Modified cost model is adopted as the cost and accumulated depreciation for some categories of fixed assets (Machinery

and equipment, Vehicles, Furniture and office equipment, Tools and supplies) weremodified usingmodification factors stated

in the above-mentioned annex. The increase of net fixed assets which are qualified tomodification, were recognized as a sepa-

rate iteminother comprehensive income items andwas presented as a separate itemin equity under the name of “modification

surplus of fixed assets”. The realized portion of modification surplus of fixed assets was transferred to retained earnings or

losses (depreciation difference resulting from the adoption of the special accounting treatment).

The application of these treatments has impacted the independent financial statements for the current year as follows:

31/12/2016

Before adopting

special accounting

treatment

Effect of applying

special accounting

treatment

After

adopting special ac-

counting treatment

Debit /(Credit)

EGP

First: - statement of Financial Position

Property, plant, equipment and projects

under construction (Net)

4 580689

318250

4898939

Deferred tax liabilities

103 226

61 163

164 389

Modification surplus of fixed assets

257087

Second: - Consolidated statement of

Comprehensive Income

Modification surplus of fixed assets

318250

Deferred tax

61 163

257087

2016 ANNUAL REPORT

110

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)