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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)
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GB Auto
•
2012 ANNUAL REPORT
Instalment sales revenues are those that require the payment of the value in instalments that are charged at sale price excluding inter-
est as revenues on the sales date. The selling price is the present value of the instalments and is determined by discounting the value
of the instalments due using the interest rate applicable. The deferred interest income is charged as a revenue when due and on the
basis of the matching principle, taking into account the applied interest rate on the transaction.
(c) Sales of services – maintenance
The Group’s entities sells a maintenance service. That service is provided on a time and material basis. Revenue from time and spare
parts is recognised on delivering the services.
(d) Lease
Lease income is recognized on the basis of the rate of return on the lease contract plus an amount equal to the depreciation charge
for the period and the difference between the recognized lease revenue and the gross receivable is deferred in the balance sheet in the
same financial year in a separate account either debit or credit and is offset against the net book value of the leased asset on termina-
tion of the lease contract.
(e) Interest income
Interest income is recognized on a time proportion basis, taking account of the principal outstanding and the effective interest rate
over the period to maturity, when it is determined that such income will accrue to the Group.
(f) Dividend income
Dividend income is recognised when the right to receive payment is established.
W. Current and deferred income tax
The current income tax charge is calculated on the basis of the tax laws enacted at the balance sheet date in the countries where the
Company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions
taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and establishes provisions
where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not account-
ed for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of
the transaction affects neither accounting nor taxable profit nor loss. Deferred income tax is determined using tax rates (and laws)
that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income
tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the
temporary differences can be utilised.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the
timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not
reverse in the foreseeable future.
X. Segment reporting
Business segments provide products or services that are subject to risks and returns that are different from those of other business
segment. Geographical segments provide products or services within a particular economic environment that is subject to risks and
returns that are different from those of components operating in another economic environment.
Y. Dividends
Dividends are recorded in the Group’s financial statements in the period in which they are approved by the Group’s shareholders.
Z. Comparative figures
Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year.