77 / 113
6 Finance Costs
December 31, 2016
December 31, 2015
Interest income
12 605
43 876
Interest income on installment sales
3 360
2 158
Total Finance Income
15 965
46034
Interest expense and bank charges
(657 296)
(383 860)
Foreign exchange differences
(1 212 021)
(175 439)
Total FinanceCost
(1 869 317)
(559299)
Net FinanceCost
(1 853 352)
(513 265)
7 Provisions and Impairment of Current and Non-Current assets
Provisions no longer required
December 31, 2016
December 31, 2015
Warranty provision
-
17 662
Reversal impairment of accounts and notes receivables, debtors and
other debit balances.
2 767
1 514
Litigation provision
23
-
Total provisions no longer required
2 790
19 176
Provisions formed
December 31, 2016
December 31, 2015
Warranty provision
(48 309)
(30 593)
Impairment of accounts and notes receivable, debtors and other debit
balances
(84 957)
(16 929)
Litigation provision
(520)
(21)
Other provisions
(53 860)
(30 093)
Total provisions formed
(187 646)
(77 636)
Net provisions in the income statement
(184856)
(58460)
• Themovement of current and non-current assets impairment represented as follow:
Balance at
1/1/2016
Impairment
during the
year
Used during
the year
Reversal of
Impairment
during the
year
Effect of
movements
of exchange
rates
Balance at
31/12/2016
Impairment of Accounts &
Notes receivable
290 783
82 457
(33 230)
(2 767)
42 486
379 729
Impairment of Debtors &
Other debit balances
5 407
2 500
-
-
-
7 907
296 190
84957
(33 230)
(2 767)
42486
387 636
Impairment of Inventory*
69 222
29 224
-
(17 908)
46 586
127 124
365 412
114 181
(33 230)
(20675)
89072
514760
*
The formation and reversal of inventory impairment are charged in cost of revenue at income statement.
2016 ANNUAL REPORT
75
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)