Egyptian Resorts Company “Egyptian Joint Stock ... - ERC Egypt

- 2 - Translated & OriginallyIssued in Arabic(C) The company is listed under the stock exchange market in Cairo andAlexandria.2- Basis of preparation of the Separate financial statement2-1 Basis for preparationA- Statement of complianceThe consolidated financial statements have been prepared in accordance withEgyptian Accounting Standards and in the light of applicable Laws andregulations.B- Basis of measurementThese financial statements have been prepared on the historical cost basis.C- Functional and presentation currencyThese financial statements are presented in Egyptian pounds, which is theCompany’s functional currency.D- Use of estimates and judgments- The preparation of financial statements requires management to makejudgments, estimates and assumptions that affect the application ofaccounting policies and the reported amounts of assets, liabilities, incomeand expenses and the estimates and assumptions related to them whenapplied are considered according to prior experience and acceptable otherfactors. The results of these assumptions and estimates represent the basefor judgment on the net book values of assets and liabilities in a clearer waythan any other source. Actual results may differ from these estimates.- The assumptions and estimates are reviewed periodically.- Revisions to accounting estimates are recognized in the period in which theestimate is revised if revision affects this period, in the revision period or inany future periods if the revision affects both of them.2-2 Principles for consolidation of company’s and its subsidiaries financialstatementsThe attached consolidated financial statements include assets, liabilities and theresults of Egyptian Resorts Company and its subsidiaries which is called a“group” in which the holding company controls. The basis for preparationconsolidated financial statements is as follows:All balances and transactions between the companies of the group wereeliminated.Minority interest from Owners’ equity and companies’ results which theholding company controls so it was classified in a separate item in theconsolidated financial statements. The percentage of the minority interestin assets and liabilities of the subsidiary companies were computed whenacquired.