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R. Segmental reports
A segment is a group of related assets and operations that are subject to risks and returns that are different from
those of other sectors or within a single economic environment subjects to risks and returns that relate to it, other
than those relate of segments operating in a different economic environment.
S. Dividends
Dividends are recorded in the Group’s financial statements in the period in which they are approved by the Group’s
shareholders.
T. Comparative figures
Wherenecessary, comparativefigures havebeen reclassified toconformtochanges inpresentation in the current period.
U. The impact of special accounting treatment to deal with the effects of liberalization of
foreign exchange rates:
TheCompany’smanagement has applied some of the special accounting treatments listed inAppendixAof Egyptian
Accounting StandardNo. 13, amended in 2015, «Effects of Changes in Foreign Exchange Rates» issued on 7 February
2017 by the Minister of Investment Decision No. (16) of 2017, Accounting for dealing with the effects of the floatation
of foreign exchange rates, these treatments are as follows:
First, Modified cost model is adopted as the cost and accumulated depreciation for some categories of fixed as-
sets (Machinery and equipment, Vehicles, Furniture and office equipment, Tools and supplies) were modified us-
ing modification factors stated in the above-mentioned annex. The increase of net fixed assets which are qualified
to modification, were recognized as a separate item in other comprehensive income items and was presented as a
separate item in equity under the name of «modification surplus of fixed assets”.The realized portion ofmodification
surplus of fixed assets was transferred to retained earnings or losses (depreciation difference resulting from the
adoption of the special accounting treatment).
The following is themovement of the result of the adjustment of the asset cost during theperiodended31December 2017:
Balance on January 1
259 585
Disposal during the period
(70 125)
The realized part of the cost of the asset cost adjustment (transfer of retained earnings during the period).
(36 995)
Deferred tax
20 570
Balance onDecember 31, 2017
173 035
108 • 2017 ANNUAL REPORT
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)