FRA announced that the new Egyptian Accounting Standards postponed until 1 January 2021, according to the Ministerial Decree No. 1871 – recently issued – to postpone applying the Egyptian Accounting Standards no. (47), (48) (49) due to the economic impact of COVID-19 pandemic.
Dr. Mohammed Omran – FRA’s Chairman said that the Authority asked the Supreme Committee “to review the Egyptian accounting standards and Egyptian standards on Auditing Review and other Assurance Services” to study the impacts of applying the amendments to EAS 47 related to financial instruments, EAS 48 (which addresses revenue sharing contracts) and EAS 49 (which governs leasing contracts in implementation of Law no. 176 no. 2018 issued in August 2018).
FRA’s Chairman noted that the amendments made to the Egyptian Accounting Standards came with the aim of setting the principles that companies must adhere to these new amendments to provide appropriate information to users of financial statements. In addition, these standards enhance integrity and accuracy of financial statements through standardizing the accounting policies and treatments for companies to provide more disclosure and transparency to users of the financial statements and enabling them to take the economic and financial decisions. These amendments also represent a step to overcome a major obstacle hindering the competitiveness of the Egyptian market in attracting foreign investments and preparing the Egyptian economy to enter the scope of work of major companies.
It is worth noting that the Supreme Committee “to review the Egyptian accounting standards and Egyptian standards on Auditing Review and other Assurance Services” ” is formed by Ministerial Decree no. (909) of 2011. The committee is headed by FRA’s Chairman and the membership of the Executive Director of GAFI or whoever he delegates, a representative of the Central Auditing Agency (CAA), Head of the Egyptian Society of Accountants & Auditors (ESAA) and an accounting expert.