الهيئة العامة للرقابة المالية

FRA gives top priority to the development of the Egyptian Accounting Standards (EASs). The EASs play a key role in ensuring that financial statements of economic entities operating in various production activities accurately reflect their financial position and business operations. The development of EASs is driven by the rapid local, regional, and global economic changes and consequent challenges facing companies to practice their activities and achieve their objectives.
Relatedly, EASs help companies present their financial statements in an accurate manner reflecting their real market value, taking into account the economic developments and international standards. This in turn enables stakeholders to make their economic and investment decisions on a sound basis.
The development of EASs also supports the government’s plan to maximize the return on assets (ROA ) as part of implementing the State Ownership Policy Document.

The Ownership Document determines the state’s presence in the economic sectors and seeks to enhance the private sector’s participation in public investments. The move confirms the government’s keenness to facilitate foreign investment inflows and encourage global companies to invest in Egypt.

As part of FRA’s rapid response to various developments and changes, namely; the coronavirus (COVID-19) pandemic, the Russian-Ukrainian war, and supply chains disruptions that have caused severe cracks in the global economy, the Egyptian Accounting Standards Review Committee, formed by the Prime Minister’s Decree No. 2115 /2023, approved the introduction of the revaluation model for fixed assets (Standard No. 10), intangible assets (Standard No. 23), exploration and valuation of mineral resources assets (Standard No. 36), and the fair value model for real estate investment (Standard No. 34) and its amendments. The new model enables companies to revalue their assets to reflect their fair values accurately and the companies’ financial position.
The development of the EASs included the rules and regulations through which the revaluation of various types of companies’ assets is carried out, as well as the transitional treatment and the disclosures required for those treatments.
In this respect, the amendments of the EASs stipulated the issuance of EAS No. 50 on insurance contracts to be in alignment with international standards, alongside the introduction of some treatments for fruit trees to be within Standard No. 10 on fixed assets instead of Standard No. 35.
The implementation of these standards is of benefit not only for companies but also for the investment climate in Egypt. To this end, the Board of Directors of FRA issued a decree to establish a registry for appraisers specialized in various activities to apply these standards.
The appraisers should be registered in the FRA registry to practice these activities. FRA issued terms and conditions for registration and its continuation. So far about 8 appraisal experts were registered at FRA’s registry.
FRA has also issued a raft of other decrees that enable companies to address the effects of changes in foreign exchange rates. This enables companies to present their financial statements in a way reflecting their real financial position and includes the actual costs of providing foreign currency used in their production activities.
Moreover, FRA has streamlined the rules and regulations of registering auditors in its registries in an effort to attract professional competencies and cadres. The new rules stipulate that auditors should move ahead with professional education, alongside providing technology infrastructure requirements.
In order to upskill auditors, the new rules state that each auditor and team member should provide a statement indicating obtaining a minimum of 25 training hours for professional education per year and no less than 120 training hours in accounting and auditing over 3 years.
As part of FRA’s continuous efforts to keep pace with the developments of international standards, the Prime Minister issued Decree No. 636/2024, amending some provisions of the EASs, Standard No. 13, to allow companies to account for the sudden change in the currency exchange rate in their budgets. This enables companies to apply the exchange rate at which they had executed commercial transactions if the entity was unable to obtain foreign currency as long as it was recorded in the books.
The standard allows for the entity to choose the exchange rate of the currency to be used in valuing its cash balance at the end of the financial period, which ensures the accuracy of the financial statements in expressing the financial position and business results, as well as Standard No. 17 on standalone financial statements, and amendments to Standard No. 34 on real estate investment, to keep pace with international standards.