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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)
68
GB Auto
•
2012 ANNUAL REPORT
Finance leased assets
Property, plant and equipments include assets leased to others, under finance lease contract which are subject to Law No. 95 for 1995
as follows:
2012
2011
Cost
366,911
220,629
Accumulated depreciation
(84,906)
(56,481)
Net book value
282,005
164,148
6. Intangible assets
Goodwill
Exclusive
agency and
trading
rights
Computer
software Knowhow
Total
Cost
Balance at 1 January 2012
178,375
81,321
13,648
5,703
279,047
Foreign currency translation differences
-
8,615
-
-
8,615
Additions
-
-
518
-
518
Balance at 31 December 2012
178,375
89,936
14,166
5,703
288,180
Accumulated amortization
Balance at 1 January 2012
-
-
12,301
5,703
18,004
Amortization charge
-
-
1,118
-
1,118
Balance at 31 December 2012
-
-
13,419
5,703
19,122
Net book value at 31 December 2012
178,375
89,936
747
-
269,058
Net book value at 31 December 2011
178,375
81,321
1,347
-
261,043
Goodwill
•
On 28 March 2007, the Company and its subsidiaries 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 and obtained by issue of ordinary shares from GB
Auto (Note 23-C). The acquisition resulted in a goodwill amounting to EGP 177,375 thousands which represents the increase in
the acquisition value over the fair value of the Company’s acquired assets. This goodwill has been allocated as an asset of Cairo
Individual Transport Industries “CITI”.
•
On 8 September 2008, the Company and its subsidiaries acquired the shares of the GB for Capital Lease (S.A.E) which the Com-
pany’s main activity is financial leasing and the acquisition resulted in goodwill amounted to EGP 1,000 thousands.
Impairment test of good will
The management assesses annually at the balance sheet date at 31 December whether the carrying amount of the goodwill is fully
recoverable, unless there are indicators regarding the impairment of such goodwill.
Goodwill is allocated to the Group’s cash generating units identified according to operating segments as presented below.
2012
2011
Two and three wheels
177,375
177,375
Capital leasing activity
1,000
1,000
178,375
178,375