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The following is thenatureand thevalues for themost significant transactionswith the related- partiesduring theperiod:
Transaction amount
Related party name
Relation type
Transaction
nature
December
31, 2017
December
31, 2016
Executive Directors
Board of director members
Cash transfers
(322)
322
Topmanagement
salaries
(30 444)
30 444
EQI
Shareholder in one of the subsidiaries Dividends
48 843
26 549
GB for import and export.
Related Party
Cash transfer
677
(1 477)
Al Watania for Vehicles Accessories and
spare parts
Related Party
Cash transfer
6 963
(8 512)
SARL SIPAC – Algeria
Related Party
Cash transfer
5 534
(3 698)
Kassed Shareholders’ current account
Shareholder in one of the subsidiaries Cash transfer
1 367
(1 020)
Itamco agriculture
Related Party
Cash transfers
(228)
42 132
El- QalamShareholder current account Shareholder in one of the subsidiaries Cash transfers
2 047
866
El-Nabateen Shareholders’ current
account
Shareholder in one of the subsidiaries Cash transfers
12 841
4 949
Marco Polo Company
Shareholder in one of the subsidiaries Cash transfers
-
(1 149)
Itamco for Import and Export
Related Party
Cash transfers
1 399
(41 496)
Al Watania for Tires Import
Related Party
Cash transfers
1 291
(3 841)
Algematco – Algeria
Shareholder in one of the subsidiaries Cash transfers
(3 083)
(3 335)
Blue pay for management
Shareholder in one of the subsidiaries Cash transfers
-
12 000
IAC
Shareholder in one of the subsidiaries Cash transfers
1 152
8 912
34.Significant accounting policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are sum-
marized below:
A. Business combination
•
TheGroupaccounts for business combinationusing the acquisitionmethodwhencontrol is transferred to theGroup.
•
The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net
assets acquired.
•
Any goodwill that arises is tested annually for Impairment. Any gain on a bargain purchase recognized in profit
or loss immediately.
•
Transaction cost are expensed as incurred, except if related to the issue of debt or equity securities.
•
The consideration transferred does not include amounts related to the settlement of pre-exiting relationship.
Such amounts are generally recognised in profit or loss.
•
Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contin-
gent consideration that met the definition of financial instrument is classified as equity, then it is not re-mea-
sured and settlement is accounted for within equity. Otherwise, other contingent consideration is re-measured
at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are
recognized in profit or loss.
1. Subsidiaries
•
Subsidiaries are entities controlled by the Group.
•
TheGroup controls an entitywhen it is exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its power over the entity.
•
The financial statements of subsidiaries are included in the consolidated financial statements from the date on
which control commences until the date on which control ceases.
2. Non-controlling interests
NCI are measured at their proportionate share of the acquirer’s identifiable net assets at the date of acquisition.
Changes intheGroup’s interest inasubsidiarythatdonot result ina lossof control areaccountedforasequitytransactions.
3. Loss of control
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any
related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest
retained in the former subsidiary is measured at fair value when control is lost.
4. Transaction elimination on consolidation
Intra‑group balances and transactions, and any unrealised income and expenses arising from intra‑group transac-
tions, are eliminated. Unrealised gains arising from transactions with equity accounted investees are eliminated
against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the
same way as unrealised gains, but only to the extent that there is no evidence of impairment.
B. Foreign currency
1. Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of Group companies at
the exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the
exchange rate at the reporting date.
Non-monetary items that aremeasured at fair value in a foreign currency are translated into the functional currency
at the exchange rate when the fair value was determined.
Non‑monetary assets and liabilities that aremeasured based onhistorical cost in a foreign currency are translated at
the exchange rate at the date of the transaction.
Foreign currency differences are generally recognised in profit or loss.
However, foreign currency differences arising from the translation of the following items are recognised in OCI:
•
Available‑for‑sale equity investments (except on impairment, in which case foreign currency differences that
have been recognised in OCI are reclassified to profit or loss).
•
Afinancial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge
is effective.
•
Qualifying cash flow hedges to the extent that the hedges are effective.
96 • 2017 ANNUAL REPORT
2017 ANNUAL REPORT • 97
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)