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The assets and liabilities of foreignoperations, including goodwill and fair value adjustments arising on acquisition, are trans-
lated at the exchange rates at the reporting date. The income and expenses of foreign operations are translated at the exchange
rates at the dates of the transactions.
Foreign currency differences are recognised in OCI and accumulated in the translation reserve, except to the extent that the
translation difference is allocated to NCI.
Whena foreignoperation is disposedof in its entirety or partially such that control, significant inf luence or joint control is lost,
the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the
gain or loss on disposal.
If the Group disposes of part of its interest in a subsidiary but retains control, then the relevant proportion of the cumulative
amount is reattributed to NCI.
When the Group disposes of only part of an associate or joint venturewhile retaining significant inf luence or joint control, the
relevant proportion of the cumulative amount is reclassified to profit or loss.
C Discontinued operation
A discontinued operation is a component of the Group’s business, the operations and cash f lows of which can be clearly distin-
guished from the rest of the Group.
Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be clas-
sified as held
‑
for
‑
sale.
When an operation is classified as a discontinued operation, the comparative statement of profit or loss andOCI is re
‑
presented
as if the operation had been discontinued from the start of the comparative year.
D Revenue
Revenue is measured at the fair value of the consideration received or receivable for the sale of goods and services in the ordi-
nary course of the Group’s activities. Revenue is shown net of sales tax, returns, rebates and discounts and after eliminating
sales within the Group.
The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic
benefits will f low to the Group and when specific criteria have been met for each of the Group’s activities as described below.
The amount of revenue is not considered to be reliablymeasurable until all contractual obligations have beenmet. The Group
bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specif-
ics of each arrangement.
1 Sales – wholesale and showrooms
Sales of goods are recognised when a Group entity has delivered products to the wholesaler, the wholesaler has full discretion
over the price to sell the products, and there is no unfulfilled obligation that could affect the wholesaler’s acceptance of the
products. Delivery does not occur until the products have been delivered either in the Group entitywarehouse or in thewhole-
salers’ locations depending on the agreements.Accordingly, the risks and benefits have been transferred to thewholesaler, and
either the wholesaler has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed,
or the Group has objective evidence that all criteria for acceptance have been satisfied.
No element of financing is deemed present as the sales aremade on a short credit termbasis.
2016 ANNUAL REPORT
97
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)