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• Subsidiaries are entities controlled by the Group.
• TheGroup controls anentitywhen it is exposed to, or has rights to, variable returns fromits involvementwith the entity
and has the ability to affect those returns through its power over the entity.
• The financial statements of subsidiaries are included in the consolidated financial statements from the date on which
control commences until the date onwhich control ceases.
2 Non-controlling interests
NCI aremeasured at their proportionate share of the acquirer’s identifiable net assets at the date of acquisition.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
3 Loss of control
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related NCI
and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former
subsidiary is measured at fair value when control is lost.
4 Transaction elimination on consolidation
Intra
‑
group balances and transactions, and any unrealised income and expenses arising from intra
‑
group transactions, are
eliminated. Unrealised gains arising from transactions with equity
accounted investees are eliminated against the invest-
ment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the sameway as unrealised gains,
but only to the extent that there is no evidence of impairment.
B Foreign currency
1 Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of Group companies at the ex-
change rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange
rate at the reporting date.
Non-monetary items that are measured at fair value in a foreign currency are translated into the functional currency at the
exchange rate when the fair value was determined.
Non
‑
monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the
exchange rate at the date of the transaction.
Foreign currency differences are generally recognised in profit or loss.
However, foreign currency differences arising from the translation of the following items are recognised inOCI:
• Available
‑
for
‑
sale equity investments (except on impairment, in which case foreign currency differences that have
been recognised inOCI are reclassified to profit or loss).
• A financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is
effective.
• Qualifying cash f lowhedges to the extent that the hedges are effective.
2 Foreign Operations
2016 ANNUAL REPORT
96
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)