• Sherif Samy: The past period witnessed great mobility in the fields of accounting and taxation
Sherif Samy – EFSA’s Chairman confirmed that the past period has witnessed great mobility in the fields of accounting and taxation, in the light of exchange rate liberalization and its impact on the companies’ financial statements in terms of achieving exceptional profits or losses due to currency differences. That is in addition to the re-opening of the file that is related to tax on share trading, whether listed or unlisted. He noted that there had been coordination with the Ministry of Finance and the Tax Authority with respect to those two topics.
He pointed out that the Supreme Committee of Accounting and Auditing Standards under his chairmanship discussed at length the latest amendment to the Egyptian Accounting Standards concerning the Effects of Changes in Foreign Exchange Rates and until the issuance of an annex to Accounting Standard No. 13, which was introduced and applied once. He added that the Authority has also issued an amendment to the guide of applying accounting standards for insurance companies and obligating them in the event of exceptional profits- due to changes in exchange rates- to create a special reserve of at least 80% of those profits and it shall not be distributed to shareholders in order to strengthen the financial positions of those companies.
The conference was attended by Omar Al-Mounir- the Deputy Finance Minister and Dr. Ahmed Shawky- Chairman of the Egyptian Tax Association and with the participation of a large number of tax experts and specialists from EFSA and the Egyptian Tax Authority. In his speech at the opening of the conference, EFSA’s Chairman emphasized that the valuation system has been completed by the issuance of the first Egyptian Financial valuation Standards preceded by the Egyptian real estate valuation standards. He pointed to the recent decision adopted by the Cabinet of Ministers regarding applying these standards on all transactions of public money. He noted that the said standards provide an objective basis for valuation that the Tax Authority shall use upon valuating transactions.
Source link
