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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)
69
GB Auto
•
2012 ANNUAL REPORT
An operating segments level summary of the goodwill allocation are determined based on value in use calculations. These calcula-
tions use the discounted cash flow projections based on financial budget approved by the Board of Directors covering five years
period using the following assumptions as of 31 December 2012:
2011
Average gross margin
24%
Discount rate
22%
Growth rate beyond budget period
3%
Management determined budgeted gross margin based on past performance and its expectations of the market development.
The recoverable amount of the goodwill is not less than the carrying amount at the balance sheet date.
Exclusive agency and trading rights
•
Represented in consideration paid by the Group to enter with Iraqi partner to form a subsidiary and to get the exclusive agency
and trading rights for Hyundai cars in Iraq by the new subsidiary. This consideration will be amortized over the expected life of
the subsidiary which estimated to be 25 years.
7. Investment in associates
2012
2011
GB Trade-In Co.
2,414
2,414
Impairment for investment in associates
(2,414)
-
Total
-
2,414
8. Long-term notes receivables
2012
2011
Long-term notes receivable
56,869
25,741
Deferred interest on installment sales
(14,074)
(4,421)
Net present value for long-term notes receivable
42,795
21,320
Allowance for impairment of notes receivable
(642)
(1,094)
Net
42,153
20,226