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GB Auto and its Subsidiaries (S.A.E)
Notes to the Consolidated Financial Statements
For the year ended 31 December 2012
(In the notes all amounts are shown in thousand Egyptian pounds unless otherwise stated)
60
GB Auto
•
2012 ANNUAL REPORT
b.
Held to maturity
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed matu-
rity that the company has the intention and ability to hold it to maturity other than:
1)
Those that the company upon initial recognition recognize them as at fair value through profit or loss
2)
Those that the company recognize them as available-for-sale; and
3)
Those that meet the definition of loans and receivables.
c.
Loans and receivables
Loans and receivables are non-derivative financial assets with specified or determinable value that are not quoted in an
active market. They are included in current assets, if their maturities are less than 12 months after the balance sheet
date. If not they are classified as non-current assets.
d.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives financial assets that are either classified under this category at
acquisition date or not classified in any of the other categories. They are included in non-current assets unless manage-
ment intends to dispose it within 12 months of the balance sheet date.
(ii) Reclassification
The Group may choose to reclassify the financial assets other than non-derivative that are not going to be available-for-sale or repur-
chased it in the near future out of financial instruments at fair value through profit or loss if this instrument has not been initially
recognised by the company as financial assets at fair value through profit or loss.
Financial assets other than loans and receivables are permitted to be reclassified out of the financial assets at fair value through profit
or loss category only in rare circumstances arising from a single event that is unusual and highly unlikely to recur in the near future.
In addition, the Group may choose to reclassify financial assets that would meet the definition of loans and receivables out of the
financial assets at fair value through profit or loss or the available-for-sale categories if the Group has the intention and ability to hold
these financial assets for the foreseeable future or maturity at the date of reclassification.
Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new cost or amortised cost as applica-
ble, and no reversals of fair value gains or losses recorded before reclassification date are subsequently made. Effective interest rates
for financial assets reclassified to loans and receivables and held-to-maturity categories are determined at the reclassification date.
Further increases in estimates of cash flows adjust effective interest rates prospectively.
(iii)Measurement and subsequent measurement
Regular purchases and sales of financial assets are recognised on the trade-date – the date on which the Group commits to purchase
or sell the asset.
Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit
or loss.
Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in
the income statement.
Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred
and the Group has transferred substantially all risks and rewards of ownership.
At the balance sheet date, available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently
carried at fair value. Held to maturity, loans and receivables are carried at amortised cost using the effective interest method
Gains or losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ category are recog-
nized in the income statement in the period which they arise. Dividend income from financial assets at fair value through profit or
loss is recognised in the income statement as part of other income when the Group has the right to receive these dividends.
Changes in the fair value of monetary securities debt instruments (bonds, treasury bills) denominated in a foreign currency and
classified as available-for-sale are analysed between translation differences resulting from changes in amortised cost of the security