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A. Financial leased assets:
Property, plant and equipment include assets financially leased to others, under contracts which are subject to the
provisions of the LawNo. 95 for 1995, and it recognized as fixed assets as follows:
B. Leased assets:
The Group has financial leased assets (trailers and buses) according to contracts under Law No. 95 for 1995, that is
not considered as property, plant and equipment according to the accounting policy (34/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,
2017
December 31,
2016
Total contractual lease payments
63 941
35 393
Total purchase price on termination of leases
100
100
Average contracts life
4
4
lease payments for the year
23 581
8 071
16. Intangible assets and goodwill
Goodwill
Computer
software
Knowhow
Total
Cost
Balance at 1 January
431 932
26 347
5 703
463 982
Additions during the year
-
2 334
-
2 334
Transferred fromprojectsunder construction
-
5 172
-
5 172
Effect of movements of exchange rates
(4 623)
-
-
(4 623)
Balance at December 31, 2017
427 309
33 853
5 703
466 865
Accumulated amortization
Balance at 1 January
-
21 072
5 703
26 775
Amortization charge for the year
-
9 744
-
9 744
Balance at December 31, 2017
-
30 816
5 703
36 519
Net carryingamount atDecember31, 2017
427 309
3 037
-
430 346
Net carryingamount atDecember31, 2016
431 932
5 276
-
437 208
Goodwill
•
OnMarch 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 177millionwhich represents
the increase in the acquisition value over the net fair value of the acquiredCompany’s assets at the acquisitiondate.
This goodwill has been allocated for the asset of the operating segment of two and threewheels’ segment.
•
On September 8, 2008, GBAutoCompany fully acquired the shares of GB for financial lease (S.A.E) which its busi-
ness is financial leasing with all its fields, and the acquisition resulted in goodwill amounted to EGP 1million.
•
During November 2010, the Group entered into 50% investment as a joint venture agreement in Almajmoa Ala-
lamia 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 investment the group recognized a goodwill.
Lands &
buildings
Machinery &
equipments
Vehicles
IT
infrastructures
&computers
Fixtures &
furniture
Total
Cost
Cost at 1 January 2016
1 022 887
213 906
589 242
37 687
1 757
1 865 479
Additions during the year
1 386 160
124 732
184 190
505
-
1 695 587
Disposals during the year
(210 852)
(25 209)
(100 655)
-
-
(336 716)
Balance at 31December 2016
2 198 195
313 429
672 777
38 192
1 757
3 224 350
Cost at 1 Januaray 2016
2 198 195
313 429
672 777
38 192
1 757
3 224 350
Additions during the yaer
1 713 373
500 746
226 487
-
-
2 440 606
Disposals during the year
(348 500)
(51 843)
(125 616)
(5 100)
(1 757)
(532 816)
Balance at 31December 2017
3 563 068
762 332
773 648
33 092
-
5 132 140
Accumulated depreciation
Accumulated depreciation at 1 Januaray 2016
19 324
41 358
179 447
9 081
497
249 707
Depreciation during the year
25 027
27 582
127 623
8 369
351
188 952
Disposals during the year
(3 755)
(10 111)
(64 176)
-
-
(78 042)
Accumulateddepreciationat 31December2016
40 596
58 829
242 894
17 450
848
360 617
Accumulated depreciation at 1 Januaray 2017
40 596
58 829
242 894
17 450
848
360 617
Depreciation during the year
49 502
61 383
136 453
7 572
205
255 115
Disposals during the year
(5 481)
(10 448)
(80 144)
(3 825)
(1 054)
(100 952)
Accumulated depreciation at 31December 2017
84 617
109 764
299 203
21 197
(1)
514 780
Carring Amount
At 1 January 2016
1 003 563
172 548
409 795
28 606
1 260
1 615 772
At 31December 2016
2 157 599
254 600
429 883
20 742
909
2 863 733
At 31December 2017
3 478 451
652 568
474 445
11 895
-
4 617 360
Financial leased assets (Net)
Note
31 December
2017
31 December
2016
Financial leased assets (Net)
4 617 360
2 863 733
Deduct:-
Amounts under settlement of financial lease contracts
(28)
1 532 148
768 694
3 085 212
2 095 039
84 • 2017 ANNUAL REPORT
2017 ANNUAL REPORT • 85
GB Auto (S.A.E.)
Notes to the consolidated financial statements for the financial year ended December 31, 2017
(In the notes all amounts are shown in Thousand Egyptian Pounds unless otherwise stated)