87 / 113
B Leased Assets:
The Group has financial leased assets (trailers and buses) according to contracts under Law No. 95 for 1995, that is not con-
sidered as property, plant and equipment according to the accounting policy (35/Q) and according to the requirement of the
Egyptian Accounting Standard (No.20), according to, the annual lease payments are recognized as an expense in the income
statement for the year. And the leased contracts are as follows:
December 31, 2016
December 31, 2015
Total contractual lease payments
35 393
23 679
Total purchase price on termination of leases
100
2
Average contracts life
4 years
5 years
lease payments for the year
8 071
6 514
17 Intangible assets and goodwill
Goodwill
Computer
software
Knowhow
Total
Cost
Balance at 1 January
288 065
23 260
5 703
317028
Additions during the year
-
843
-
843
Transferred fromprojects under construction
-
2 246
-
2246
Effect of movement of exchange rates
143 867
-
-
143 867
Balance atDecember 31, 2016
431 932
26 349
5 703
463 984
Accumulated amortization
Balance at 1 January
-
18 247
5 703
23 950
Amortization charge for the year
-
2 826
-
2826
Balance atDecember 31, 2016
-
21 073
5 703
26 776
Net carrying amount atDecember 31, 2016
431 932
5 276
-
437 208
Net carrying amount atDecember 31, 2015
288065
5 013
-
293 078
Goodwill
• On March 28, 2007, GB Auto company fully acquired the shares of Cairo Individual Transport Industries “CITI” by
acquiring 49.03% which were owned by the minority at a value of EGP 209 997, in return of acquiring shares of GB
Auto share capital increase. The acquisition resulted in a goodwill amounting to EGP 177 million which represents the
increase in the acquisition value over the net fair value of the acquired Company’s assets at the acquisition date. This
goodwill has been allocated for the asset of the operating segment of two and three wheels’ segment.
• On September 8, 2008, GB Auto Company fully acquired the shares of GB for financial lease (S.A.E) which its business is
financial leasing with all its fields, and the acquisition resulted in goodwill amounted to EGP 1 million.
• During November 2010, the Group entered into 50% investment as a joint venture agreement in Almajmoa Alalamia
Litijaret Alsaiarat (GK), in Jordan, to acquire the existing business of Hyundai Vehicles Agency in Iraq, the joint venture
agreement gives the group the power to govern the financial and operating policies of (GK) and as a result of this invest-
ment the group recognized a goodwill.
2016 ANNUAL REPORT
85
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)